Macau closes all casinos for a week as zero-tolerance COVID policy

Macau closes all casinos for a week as zero-tolerance COVID policy


The Macao SAR Government has ordered the closure of all commercial and industrial businesses for the next week with limited exceptions for essential services. The decision was made after 71 new COVID cases were reported locally to bring the total number of positive cases in the latest outbreak since June 18 to 1,374.

Secretary for Administration and Justice Andrew Cheong Weng Chun said at a press conference on Saturday that all establishments will cease operations from midnight on July 11.

All casinos in Macau will be closed for the week and SJM Holdings Limited’s (OTCPK:SJMHF) Grand Lisboa casino hotel is in lockdown due to a cluster of positive cases, meaning 500 people are trapped at the location.

The latest outbreak is a devastating blow to Macau casinos and hopes for a recovery in the back half of 2022. There had been some optimism that small steps away from the zero-tolerance COVID policy and relaxed quarantine rules could bring back the international tourism component to the industry for the first time since early in 2020.

However, the Macau sector saw its worst monthly gross gaming revenue tally since September of 2020 when GGR fell 62.1{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9} year-over-year in June to 6.54B patacas. The outlook for July GGR is now bleak with the casino closings having a decent probability of being extended past a week. Even before the recent development, S&P Global Ratings said the best case scenario for Macau GGR this year is just 20{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9} to 30{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9} of the 2019 level. Shares price across the sector are dismal, although Las Vegas Sands (LVS) has outperformed due to its strong performance in Singapore.

Macau casino stocks: Wynn Macau (OTCPK:WYNMF) (OTCPK:WYNMY), Wynn Resorts (WYNN), Sands China (OTCPK:SCHYY) (OTCPK:SCHYF), Las Vegas Sands (LVS), MGM China (OTCPK:MCHVF) (OTCPK:MCHVY). MGM Resorts (MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF) (OTCPK:SJMHY), Melco Resorts & Entertainment (MLCO), Studio City International (MSC).

Quoted from Various Sources

Published for: Ipodifier