If any worsening of the trade war leads Beijing to call for a boycott of US companies, the United States’ casino kings will be sweating.
Three US companies – Las Vegas Sands, founded by Republican Party donor Sheldon Adelson, Wynn Resorts and, to a lesser extent, MGM Resorts International – rely on their positions in the casino hub of Macau to thrive. With their two-decade-old concessions or sub-concessions expiring in the next four years, they need Beijing and Washington to stay on good terms.
Combined, the three account for half the gaming revenue in Macau, according to Bloomberg Intelligence analyst Margaret Huang. Given that Macau is the only part of China where casino gambling is allowed, the city’s fortunes could collapse if Beijing were to limit the flow of mainlanders, who comprise 90 percent of Macau’s gamblers. That happened when Beijing cracked down on corruption and extravagance four years ago. Alternatively, Beijing could bend the ear of Macau to increase the presence of Chinese operators – so that when the territory’s three casino-operating concessions and three sub-concessions come up for approval, it would allow a seventh player, insist on local partners, or even scrap the Americans’ licenses.
