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MGM says losing US$1.5 million a day due to Macau casino closure over COVID-19 threat

2020-02-14 04:35     Comment:0

US gaming company MGM Resorts International says that it is currently losing US$1.5 million (12 million patacas) a day in Macau, where the city’s 41 casinos have all been closed by government order since February 5 for at least 15 days in order to reduce the risk of novel coronavirus (COVID-19) infection, Bloomberg reported yesterday.

Moreover, the Nevada-based casino operator said in a statement this week that it withdrew its earnings forecast for this year, citing the COVID-19 impact on its casinos in Macau and Las Vegas. The company said the virus had made its outlook “unpredictable.”

MGM runs two casinos in Macau, one on the peninsula and the other in Cotai.

Last year, MGM got about 27 percent of its revenue from Macau, the largest gambling market in the world.

Like its five rival gaming operators in Macau, MGM shut its operations last Wednesday. That has led to a complete loss of gaming business – all while the company has to keep paying staff and maintaining its properties, Bloomberg pointed out.

Bloomberg noted that even before the COVID-19 hit, the gaming industry in Macau was already affected by the anti-government unrest in Hong Kong and the trade spat between Washington and Beijing.

According to Bloomberg, Wynn Resorts revealed last week that it was losing US$2.5 million a day in Macau because of the government-imposed casino closure.

MGM China’s net revenues rise 6 pct in 4Q 2019

Meanwhile, MGM China said in a statement to the Hong Kong Stock Exchange yesterday that its net revenues rose 6 percent year-on-year to US$727 million in the fourth quarter of last year.

While main floor table games win increased 31 percent year-on-year due to the addition of 25 new-to-market gaming tables at MGM COTAI last year and a 499 basis point growth in win percentage, VIP table games win dropped 20 percent due to a 33 percent decrease in turnover at MGM MACAU, the statement said.
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