Macau remains one of the world’s top casino destinations. For months, however, tourism into the city has been sparse and gambling revenue is dropping. Interestingly, Macau’s casino share prices have begun to increase this week. Today, we’re going to look at why this is.
Casino companies have to be pleased with this development. Many have been hurting badly through 2020. Some feel that Macau may end up being a source of valuable revenue for these companies heading into 2021.
Let’s look at what’s going on here!
US Casino Companies Continue to Release Revenue Reports
Casinos around the world are still being heavily affected by the global pandemic. The US remains the hardest-hit country from this new virus and casinos here are struggling to bring in players. It’s unclear when this trend may begin to change.
In recent weeks, some of the country’s biggest casino companies have begun releasing their second-quarter revenue reports. Things are about as bleak as most analysts predicted. All of these companies saw massive drops in revenue when compared to the same quarter in 2019.
Las Vegas Sands experienced a massive 97% drop in revenue in 2020’s Q2. Over these three months, the company managed to bring in just $98 million. That represents the worst quarter in the company’s history.
Wynn Resorts also offered some insight into its second-quarter earnings. This massive casino operator saw a 95% drop in revenue. Company officials are confident thing will look significantly better through July, August, and September.
It’s been a tough year for the land-based gambling industry. Many casinos have already been forced to permanently shut down. More are likely to do so over the next six months.
More focus is beginning to shift towards Macau, where rates of tourism may be about to increase.
Macau Casino Share Prices Have Begun to Increase
As we already mentioned, tourism into Macau has been almost non-existent for months. Much of that was due to the travel restrictions that mainland china set on this territory. In the past, visitors to Macau were forced to quarantine for two weeks after returning to the mainland.
Officials in Macau have been complaining about these regulations. Many felt they made it impossible for the tourism industry here to thrive. It now appears that the government in Mainland China agrees.
Authorities in the Hong Kong and Macau tourism offices have confirmed that visitors to these cities will no longer need to quarantine after returning to the mainland. Visitors will, however, need to obtain a negative Covid-19 test and a green health code in order to return home.
It seems likely that this will help to increase tourism to Macau. As a result, many Macau casino share prices have begun to increase. Melco Resorts & Entertainment saw an increase of 5.41%. Las Vegas Sands saw a 4.07% increase. Wynn Resorts’ share prices increase by 4.14%. Lastly, MGM Resorts International saw an increase of 1.42%.
It’s great news for these companies. It may be more than a year before casinos in the US see their revenue earnings return to normal. Hope is that Macau manages to make up for some of the revenue losses experienced in the United States.
What else can US casinos do to increase their earnings?
Online Gambling is Growing More Popular in the US
Many gambling fans have been disappointed to see their local casinos either closed or with significant restrictions set in place. As we mentioned earlier, many of these venues may be forced to permanently close down. The popularity of online gambling is now growing as a result.
Many love the convenience that these sites offer. It can also be exciting to see how many different gambling options these websites provide.
Sports betting is more popular now than ever before. More than 20 states have passed laws to legalize and regulate this industry. Many more are likely to do so over the next couple of months.
The surge in online gambling is likely to continue for some time. As more states earn money from their internet gambling industries, more states are likely to begin looking into its regulation, as well. Hopefully, the land-based casino industry begins to recover soon, as well.
We’ll need to wait and see how Macau casino share prices change as the weeks go on. It will be interesting to see how quickly tourism rates jump here with China’s travel restrictions now lifted. Make sure to stay tuned for updates.
Do you plan on visiting Macau anytime soon? Let us know in the comments section below!