The Bloomberg Intelligence index for Macau casinos fell as much as 2.1 percent in early Monday trading in Hong Kong, with Galaxy Entertainment Group and SJM Holdings leading losses.
The casino shutdown is expected to cost Macau up to US$186 million, estimated Union Gaming Securities Asia Ltd. analyst Grant Govertsen. Industry employees said it was the first time Macau shut down gambling since licenses for casinos were given out in 2002.
The storm disruption is expected to dampen casino revenue in Macau, with Govertsen and other analysts lowering the hub’s outlook. September’s revenue growth rate could be affected by as much as 7 percentage points, said Govertsen, who almost cut in half the firm’s previous forecast of a 15 percent increase. The storm’s impact is likely to cut third-quarter revenue growth by 2 percentage points, to 12 percent, he wrote in a note.
The shutdown is the latest blow to Macau casino operators after a rebound for the industry that began more than two years ago. Investor worries are growing over a pullback in spending by big gamblers as China faces an economic slowdown and questions tied to the trade war with the U.S.
“This is the first time in Macau history that all casinos halted operations, to ensure the safety of employees,” said Stephen Lau, president of Power Macao Gaming Association, an organization that represents casino workers. “We are seeing the government and casino operators no longer just put profit over the employees’ interest.”
Source: GMB / Bloomberg
