Gaming shares plunge as Macau shuts casinos

STORY: Macau shut all its casinos for the first time in more than two years on Monday (July 11).

The move came as authorities struggle to contain its worst coronavirus outbreak yet, and sent shares in gaming firms tumbling.

Now the 30-plus casinos in the world's biggest gambling hub will be shut for one week.

Many casinos have been effectively closed for the past three weeks with only minimal staffing allowed.

But the more drastic measures have hit investor confidence hard.

Some analysts predict that any recovery in gaming revenue might not happen until the end of the third quarter or even later.

Shares in Sands China plunged 9%

with shares in Melco International, Wynn Macau, SJM, Galaxy and MGM China dropping between 6 and 7%.

The industry accounts for more than 80% of government revenues, with leaders previously hesitant to close casinos due to a mandate to protect jobs.

Casinos were last shut in Macau in February 2020 for 15 days.

But with COVID cases rising, authorities are clamping down again, with no one allowed to enter or exit the city for at least 5 days.

While the government said it was not imposing a citywide lockdown, the stringent measures mean Macau is effectively closed.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting