China and Covid Could Cost Las Vegas Casinos Millions of Dollars

At this point, it’s almost as if the pandemic is a distant memory. Masks and social segregation are no longer required in Las Vegas casinos. Events, on the other hand, are not proceeding as smoothly thousands of kilometers away and on the opposite side of the planet. And it may now end up costing some of the biggest gaming companies a lot of money.

Macau is an island that is China’s most important gaming center. As a result of the most recent Coronavirus outbreak in that area, the government has decided to restrict access to the area and close the casinos. If the current trend continues, major American operators with significant stakes in the sector, such as MGM, Wynn, and Las Vegas Sands, stand to lose a significant amount of money.

Many people in the United States may be unaware that Macau’s casinos, not those in Las Vegas, comprise the world’s largest gambling destination. Visitors to the city come from all over the world, including Europe, Asia, and Australia. However, a significant increase in the number of Coronavirus cases has recently been observed on the small island off the coast of China. In fact, it was the largest increase ever seen. Macau has become the gambling mecca that it is today, thanks in large part to the investment of many billions of dollars by casino businesses based in the United States, which also helped the city recover from the pandemic. However, at this point, the Chinese government’s efforts to contain the most recent outbreak could be disastrous.

Among these efforts is the implementation of a policy known as “zero COVID,” in which individuals are essentially isolated in their own homes and are only allowed to leave for “necessary services.” Furthermore, widespread testing is being carried out in areas with a high infection rate. Macau’s casinos will be closed and quiet for at least a week, if not longer, as a result of all of this.

Although none of the Las Vegas casinos or the companies that own them will comment on the matter, the fact remains that they rely on Macau for hundreds of millions of dollars in revenue each year. And Macau’s fortunes have already begun to decline for the year 2022. Indeed, MGM, Wynn, and Las Vegas Sands have all stated that their earnings fell during the first quarter. The corporations point to China and travel restrictions as factors that have contributed to the drop in profitability, and a shitstorm in Macau will not help the situation.