Covid-19, the coronavirus that emerged in Wuhan, continues to spread around the world. This virus has already taken a massive toll on Macau. According to new reports, Macau’s casino revenue has plummeted due to officials closing down the city’s casinos.
This is beginning to hurt Las Vegas casino companies, too. Today, we’re going to talk about how much revenue was lost here last month. We’ll also discuss what’s in store for the future here.
Coronavirus Forces Casinos in Macau to Close Down
The Wuhan coronavirus, called Covid-19, first appeared back in December. Since that time, it’s gone on to infect more than 90,000 people and has already killed more than 3,000. Despite containment efforts, it’s spread to about 70 different countries.
Scientists are having a difficult time understanding this respiratory virus. It’s shown a unique ability to spread from person-to-person. Some claim that it’s reaching a pandemic level due to the fast spread around the world.
Covid-19 has taken a major toll on Macau’s economy. Back in February, officials in the city decided to close down all casinos in order to prevent more infections. This was a tough decision for the territory leaders, as Macau relies heavily on gambling revenue.
These casinos have since reopened. Government officials are requiring all staff and gamblers inside these gambling venues to wear face masks. Unfortunately, tourism in this city is at an all-time low and revenue is plummeting.
This isn’t surprising. Not long into the outbreak, analysts began to predict that Macau would be heavily impacted. Revenue reports are just coming out and it’s just now becoming clear how much of an impact the coronavirus is having here.
Macau’s Casino Revenue Was Lowest in History Last Month
Macau is one of the world’s biggest gambling hubs. A huge number of world-class casinos are located here, some of which are operated by major Las Vegas companies. Closing down these gaming venues had a significant impact on the territory’s economy.
Macau’s casino revenue dropped by 87.8% in February when compared to the same month last year. That’s the biggest drop ever recorded. This revenue decrease is directly related to the casino closures.
On the surface, things look pretty grim here. Not everyone is convinced that these revenue drops will continue, though. An analyst at JP Morgan Chase commented on the situation to the media this week.
“We do not think COVID-19 will curb gamblers’ enthusiasm… so its impact on the industry’s sustainable earnings power should be limited,” the analyst claims.
That may be wishful thinking. Cases of the coronavirus are beginning to slow down in China. Unfortunately, infections continue to spread in new countries. With the casinos in Macau now reopened, it wouldn’t be a surprise to see new cases hit this territory.
Hopefully, Macau’s casino revenue bounces back in March.
How is the Coronavirus Affecting LV Casino Companies?
The coronavirus has already spread to several US states. In Washington, two people have been killed by the virus. Many feel that it’s just a matter of time until a major US city is hit.
As of now, no cases have been recorded in Las Vegas. That’s surprising to some, considering this is one of the most-visited cities in the country. That doesn’t mean that casino companies based here are unaffected, though.
As Macau’s casino revenue drops, so does that revenue that Las Vegas casino companies are earning. The closure of this territory’s casinos cost several companies millions of dollars every single month. Even now that they’re open again, revenue in this city remains incredibly low.
If the coronavirus begins to spread in Las Vegas, things will get considerably worse. Like Macau, the city of Las Vegas may begin forcing casinos to close their doors. That would be devastating to the local economy. Officials here are already coming up with ways to prepare for an outbreak of the virus.
It helps to be optimistic in this situation. Countries around the world are ramping up their containment measures. We’ll need to wait and see how long it takes for the virus to run its course.
Make sure to stay tuned for more updates over the next few weeks!