Please ensure Javascript is enabled for purposes of website accessibility

Macao Casinos Face Renewed Restrictions on Mainland China Tourists

By Rich Duprey - Mar 25, 2020 at 11:24AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

New limits follow bans on tourists coming in from the rest of the world that were imposed last week.

Casinos in Macao face a new threat to their viability as officials imposed new limitations on tourism, this time from mainland China, Hong Kong, and Taiwan as the region has seen several new cases of COVID-19 after having been clear following the original coronavirus outbreak.

The new restrictions come after Macao last week barred visitors from all other countries from entering the peninsula, which is the only place in China where it is legal to gamble.

A spinning roulette wheel

Image source: Getty Images.

No dice on a rebound

Casinos were forced to close for two weeks at the beginning of February in a bid to halt the spread of the virus, but after reopening, MGM Resorts (MGM -0.69%) said visitations to its casinos weren't rebounding.

MGM, Las Vegas Sands (LVS -0.78%), and Wynn Resorts (WYNN -1.03%) have seen all of their properties in the U.S. closed in the last week as states began imposing shelter-in-place orders to contain the pandemic. Macao was seen as a relief valve for the casino businesses as it provided an outlet for them to still generate revenue. That is now in doubt.

Residents who return from anywhere outside Macao must now go through a 14-day period of quarantine upon their arrival. Even if they haven't traveled abroad or gone to either Hong Kong or Taiwan, will still need to undergo medical testing at a government-operated facility before being allowed out.

Macao casinos have been criticized for not allowing their facilities to be used for medical use even though the government was willing to pay for the rooms.

Gambling revenue plunged 88% in February following the forced closure. Analysts are expecting a 70% year-over-year decline for March.

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MGM Resorts International Stock Quote
MGM Resorts International
MGM
$30.03 (-0.69%) $0.21
Wynn Resorts, Limited Stock Quote
Wynn Resorts, Limited
WYNN
$57.69 (-1.03%) $0.60
Las Vegas Sands Stock Quote
Las Vegas Sands
LVS
$33.17 (-0.78%) $0.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.