- Casino
- By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Georgia
- Florida
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Massachusetts
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
- By State
- Slots
- Poker
- Sports
- Esports
Casinos’ Stock Continues to Fall as China Battles Coronavirus
The deadly new strain of pneumonia known as coronavirus has already claimed the lives of 106 people and counting. Amid the spread of the disease, casino companies have also suffered from a historic drop in visitations to Macau and share price decline.
Coronavirus’ Spreading Causes Casino Shares to Fall Again
Amid China’s efforts to contain the spread of the coronavirus, a deadly pneumonia that has already killed 106 people as of the time of reporting and has infected 4,500 people, the stocks of flagship casinos in Macau have come tumbling.
With the Chinese New Year celebrations marred and a pandemic spreading, Sands, Wynn, and MGM have all marked a rapid decline in their value amid falling visits. Just over the first three days of the holiday, there was a 60 percent drop in visitations.
January is now believed to further precipitate the gambling prospects for Macau, after the special administrative region posted a 3.4% year-over-year (YOY) decline for 2019. Moving forward, casinos in the area should brace themselves for double-digit declines and slumming casino revenue in 2020.
No relief is in sight until the coronavirus has been contained, market observers have cautioned. The coronavirus has left over 35 million people on lockdown. In the meantime, casino giants have continued to incur losses, with Las Vegas Sands Corp. taking a 6.6% tumble or $4.51 and Wynn Resorts falling by $10.86 or 8.06%.
MGM Resorts has been somewhat more moderately affected with a 3.86% drop, thanks to the company’s better exposure in the United States, unlike Sands and Wynn which both draw 60% of their revenue from Macau.
Yet, Deutsche Bank analyst Carlo Santarelli believes that while the short-to-midterm will be pessimistic, all the pent-up demand should lead to spikes in the activity once the coronavirus has been dealt with. U.S. exposure to the virus has remained low nevertheless, although cases have been confirmed in the United States with at least five individuals infected.
A Massive Plunge in Macau Visitors Numbers
While previous numbers noted down the drop in Macau visitation at 60%, Bloomberg has reported a far more disheartening overall number, with the drop being closer to 80%. The 80% drop accounts for only the Chinese visitors to Macau, but it is nevertheless a blow.
A new regulator, the Novel Coronavirus Response and Coordination Centre, has been established to help tackle the spread of the coronavirus in Macau after five cases have been registered. Macau has even stepped up its efforts and will now seek to get in touch with some 1,113 tourists who have flown in from Hubei province, one of the two states where the disease originated.
Meanwhile, Las Vegas Sands will probably take one of the heaviest hits, said Barry Jonas from SunTrust Bank who explained that the company’s reliance on high-roller baccarat players in Asia could negatively affect the bottom line of the company.
Santarelli explained that analysts were simply trying to “put some parameters” and come up with reliable business models for the gaming industry in the next month as governments and health organization from around the world are throwing their weight to contain the outbreak.
Related Topics:
Rachael is a veteran gaming journalist with over 9 years of writing experience but has only just started within the gambling industry. She has built a keen interest within the iGaming sector over the years from exposure at events and intends to translate her passion into publications here at GamblingNews.com to keep our readers updated with the latest developments.
Must Read
Casino
December 4, 2024
MGM Resorts Las Vegas Properties Up Parking and Resort Fees
Casino
December 5, 2024
New York Teachers’ Union Rejects Caesars’ Casino Plans
More Articles
Industry
December 10, 2024
Las Vegas Sands Donates $15M for Chinese Institute at UNLV
Industry
November 27, 2024
LV Sands’ Adelson Continues Pro-Gambling Support in Texas
Business
November 22, 2024
Wynn Shares Al Marjan Casino Update, Says Building Is 55% Complete
Legal
November 22, 2024
Wynn Las Vegas Files Motion Against Cocktail Server’s Compensation
Sports
November 21, 2024
JPMorgan Sees Bright Future for Las Vegas Sands’ Singapore Growth
Industry
November 20, 2024
Macau’s Gaming Sector Faces Global Pressures
Business
November 15, 2024
Tilman Fertitta Bolsters His Influence Within Wynn Resorts
Industry
November 12, 2024
Galaxy Entertainment Group Chair Lui Che Woo Passes Away