US-owned casino operators with properties in the Chinese gambling enclave of Macau, are reportedly losing literally millions of dollars each day because of the Corona virus. According to MGM Resorts International, the group is losing around $1.5 million each day in Macau. The Chinese government recently ordered all 41 casinos in the area to be temporarily closed over the COVID-19 threat.
The government issued the 15-day suspension until February 20th, although it may extend the order depending on the situation.
While the hotels at these casino resorts were not covered by the closure, there has been a dramatic fall in the number of visitors to Asia’s gambling capital.
In a conference call to investment analysts last week, MGM Resorts’ chairman and chief executive, Jim Murren said that the group was still keeping some of its non-gaming facilities open.
“During this time, with our casinos closed, we are actively managing our costs and are incurring approximately US$1.5 million of operating expenses per day across both properties, the majority of which is payroll,” said Murren.
Another US company which runs properties in Macau, Wynn Resorts, also reported on significant daily losses as a result of the temporary closure. Wynn said that keeping its two casinos shut was costing around $2.4 – 2.6 million each day.
The group said that it was unable to predict the duration of the disruption in Macau, nor could it tell whether the temporary closure would be extended beyond the 15 days.
Wynn said in a report last week: “We expect the impact could have a material effect on MGM China’s results of operations for the first quarter of 2020 and potentially thereafter.”
“The extent to which the coronavirus impacts the company’s results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and any additional actions taken to contain it from spreading.”
