The casino industry in Macau continues to face setbacks. This week, various Macau casino stock prices took a major dive. Gaming analysts around the world are left wondering what this means for the casino companies here moving forward.
Now is a great time to talk about why exactly these share prices dropped. We’ll also discuss how Macau’s casino industry might fare in 2022.
Let’s get into it!
Macau Casino Stock Prices Took a Dive Over the Weekend
The gambling industry in Macau has long been one of the most successful in the world. Since early 2020, however, the casinos operating here have struggled immensely. That includes some of the most successful casino companies based in the United States with property in Macau.
A huge number of successful casino operators own casino-resorts in Macau. That includes Las Vegas Sands. This casino company has focused on its operations in Macau for years and remains optimistic that things will improve here in the future.
Recently, Macau casino stock prices took a major dive. This is due to a police crackdown that resulted in 11 individuals being arrested on money laundering and illegal cross-border gambling. Some of the individuals arrested are known for being major players in Macau’s gambling industry.
Shortly after this news broke, several of the most powerful gaming companies in Macau saw their share prices take major dives. MGM China’s price fell 10%. Wynn Macau saw a share price decrease of 8%. Sands China, owned by the aforementioned Las Vegas Sands, experienced a decrease of 6%.
A lot is changing in Macau right now. Many remain concerned about the success of the gaming industry here in the long term. Here’s a quick look at how Macau might fare in 2022.
Looking Ahead to Macau’s Performance in 2022
Macau’s gambling industry has been around for decades. Prior to 2020, it would draw in millions of people from around the world, especially Mainland China, to gamble. This territory is known for being home to a huge number of casino-resorts, all of which have struggled to bring in revenue in recent years.
Analysts seem torn as to how Macau will perform in 2022. Some expect travel restrictions to ease and tourism rate in the territory to increase over the year. Others point to the fact that the pandemic is not over and international travel is still difficult in many areas around Macau.
Much of the city’s performance next year will be decided on how the world handles the pandemic. There are no clear signs it will end in 2022. The spread of a new variant called Omicron only adds to speculation that this pandemic is far from over.
Many casino companies now have difficult decisions to make. If gambling revenue in Macau remains far behind what is being seen in the US, some may decide to sell their properties in the territory. For now, it seems most casino executives are optimistic that things will soon improve here.
2021 is still proving to be the best year in history for the US gambling industry. Here’s a look back at which states experienced the most growth in their gaming industries over the past 11 months.
US Gambling Revenue Hit New Highs Throughout 2021
The United States has expanded its gambling industry tremendously over the past few years. New casinos are constantly appearing around the country. The removal of PASPA in 2018 has led to the embrace of sports betting in more than half the country, too.
Much of the entire US gambling industry was completely shut down in 2020. The pandemic caused some of the country’s major gaming hubs to shut down for months. Fortunately, 2021 has proven to be one of the best years in history for the US gambling industry.
Las Vegas reported several record-breaking revenue months. Over the year’s third quarter, gambling revenue here came out to $2.1 billion, making the best quarter in history for this city. The opening of new properties including Resorts World Las Vegas seemed to help fuel revenue growth.
Atlantic City experienced incredible revenue surges over the year, too. As a result, many of the casinos here have recently undergone major renovations. Most analysts expect to see even more revenue flowing in here next year.
Macau stock prices have just dropped. How do you expect the casino industry in Macau to fare in 2022? Let us know in the comments section below.