The coronavirus has taken an incredible toll on the land-based casino industry around the world. A huge number of casinos in Asia have seen their revenue completely stop coming in. New reports are coming out that claim these gambling venues will continue to experience low revenue figures for the next few months.
It’s a very unusual time. We’re seeing Covid-19 spread to thousands of new individuals every single day. Here’s how the virus continues to impact Asian casinos.
Macau Casinos Are Open to the Public Once Again
Macau is one of the biggest and most lucrative gambling hubs in the world. It’s a Chinese territory, yet officials have some authority to set their own regulations here. Prior to the spread of the new coronavirus, Macau had a hugely successful casino industry.
As the virus moved throughout China, it became clear that Macau would take a hit. Eventually, a casino worker in the city tested positive for Covid-19. That prompted lawmakers here to officially close down all of the casinos to the public.
This was devastating for the local economy. It also impacted many major casino companies in Las Vegas that own casinos in Macau. According to many reports, the shutdown of all Macau casinos cost these companies millions of dollars every single day.
Not long ago, these casinos opened to the public once again. Unfortunately, their revenue hasn’t jumped quite as much as many hoped. There are still heavy travel restrictions in Macau and visitation to the casinos here remains very low.
Some felt this would only last a few weeks. As time went on, it seemed possible that Macau would become what it once was. That does not appear to be the case.
Casinos in Asia May See Low Revenue Earnings For Months
The whole world is in an unprecedented situation right now. Not even the best health experts can predict how long this pandemic will continue for. As of now, it seems things will continue to play out until a vaccine is developed.
That’s bad news for casino companies. The land-based gambling industry is taking a serious hit due to the new coronavirus. According to new reports, casinos in Asia will continue to suffer due to Covid-19.
S&P Global Ratings released a report today that details what may take place this year. The company claims that many Asia-Pacific casinos will experience a drop in visitation between 60% to 80% over the next few months. This is due to ongoing travel restrictions, and casino closures.
“This is exacerbating weak consumer sentiment and leading to negative cash flows. Gaming equipment makers and lottery/betting operators are experiencing similar pain from the temporary closure of venues,” the report said.
This report did not state exactly which companies will see their revenue drop. It seems likely that all gambling venues in Macau and the Philippines will suffer.
It’s a very tough time for many industries. The land-based casino industry, in particular, is taking a major hit. This includes ones in the United States, as well.
Las Vegas Casinos Remain Shut Down
There’s no doubt that Macau is the biggest gambling destination in Asia. In North America, however, that title belongs to Las Vegas. Here, a huge number of fantastic gambling establishments are operating.
Many of the world’s biggest casino companies are based here including MGM Resorts International, Wynn Resorts, and Las Vegas Sands. Unfortunately, all of the casinos in Las Vegas have been forced to shut down. It’s unclear when Governor Sisolak will remove these regulations.
This is devastating for many of the companies here, including non-gaming ones. Tourism in the city is at an all-time low. Fortunately, the federal government passed a new stimulus package that should offer some support for these companies.
Since the land-based gaming venues have shut down, online casinos in Nevada have grown hugely popular. Most individuals here are recognizing how fun and easy this industry really is.
Casinos in Asia and the US are facing a tough few months. Online casinos are seeing their membership rates increase.
Stay tuned for more casino news over the next few months!