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American Casinos In Crisis As China Bans Tourism To Gambling Mecca Macau

American Casinos In Crisis As China Bans Tourism To Gambling Mecca Macau

American casinos
American casinos are in crisis as China bans tourism to gambling mecca Macau following two imported cases of the coronavirus in the city. Las Vegas strip. Image: Pixabay on Unsplash

U.S. gambling companies with a presence in Macau are facing a crisis as China bans tourism as a result of the coronavirus pandemic.

Macau increased its border restrictions after two new cases of COVID-19 were confirmed in the region, barring visitors from all countries except mainland China, Hong Kong, and Taiwan from entering.

The region had gone a month after the shutdown without any new confirmed cases of the viral disease until a businessman from Spain who arrived through Beijing followed by a female resident who traveled from London tested positive for the illness.

Some of the largest Las Vegas casino operators draw most of their revenue from Macau, where the Chinese government suspended all casino operations on Feb. 4 to curb the spread of the coronavirus.

Wynn Resorts derived about 75 percent of its total revenue from Macau over the past 12 months, according to FactSet, with some of the highest China exposure among its peers.

Las Vegas Sands draws 64 percent of its total revenue from its Macau operations, according to Barrons.

American casinos have their hands out, alongside the airline industry, asking Congress for emergency financial help as Las Vegas and other tourist destinations take a severe financial beating from the coronavirus outbreak.

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U.S. casino operator MGM Resorts International recently said visits to Macau were not rebounding even after its casinos were allowed to reopen, and the new travel ban would hurt earnings further.