Sunday, March 7, 2021 Contact us

Typhoon Hato Hits Hard On Macau’s Casino Industry

Typhoon Hato Hits Hard On Macau s Casino Industry

The power and internet blackouts due to the typhoon Hato hitting the gambling hub of Asia have resulted in lowered casino stocks trading in Macau.

The Union Gaming analyst Grant Govertsen thinks the typhoon is likely going to affect the casino revenues negatively, even though some of the casinos are using backup generators. It may change the scene of the constant growth in Macau’s principal business, by affecting the double digit growth for consecutive six months.

The anticipated growth for August for Macau’s casino net gaming revenue is 22 to 25 %, according to the analysts at brokerage Sanford C. Bernstein.

Many big U.S casino companies have been investing billions of dollars to expand its operations to the only area in China and the former Portuguese territory, Macau, where casinos are legal.

The shares of Las Vegas Sand and Melco Resorts dropped by more than 1 % in Wednesday midday trading. Wynn Resorts reported down by nearly 2 percent and MGM less than 1 percent down.

Govertsen warned the situation could worsen if further damages to the region are reported. The Gaming Inspection and Coordination Bureau (DICJ) of Macau have asked the casinos to cease their operations if the power to the area is not restored in time.