Typhoon Mangkhut Disrupts Casino Gambling Operation in Macau

Typhoon Mangkhut MacauThe gambling empire of Macau functions nonstop for 24 hours all seven days a week and generates revenues in several million on a weekly basis.

This gambling hub also known as Gaming Mecca by the gamblers received a massive blow as all casino operations came to a halt due to Typhoon Mangkhut. Sands China Limited and Wynn Macau Limited were the worst affected among all the casino operators over there.

All the gaming operations were shut down around 11 pm on Saturday which continued on Sunday. It started worrying about all the investors because it was causing a lot of damage and loss of expenditure. This typhoon swept through the entire region before it began to wreaking havoc in the adjacent Guangdong Province in China.

This is the first time ever that any prominent and one of the largest gaming hubs of the world was unable to continue its operation ever since casino licenses were granted by the gaming regulators back in 2002.

The gaming operation is likely to restore as soon as Typhoon Mangkhut is out of the region but things would be clearer only by Monday when the weathermen assess the situation.

All the industry officials and junket operators backed the decision to stop all the gaming operations in Macau due to this typhoon as security and safety of people and employees come first.

Stephen Lau who represents the casino workers of Power Macao Gaming Association extolled this kind gesture by the government as well as the casino operators for putting the safety of the employees as a top priority over profits and revenue.

Downgrade in Growth Forecast

Grant Govertsen, who is an analyst at the Union Gaming Securities Asia Limited, said that the gaming revenue would be directly affected because there is an upsurge in overall revenues over the weekend.

It is speculated that two-day blanket closure has affected business to the tune of MOP 1.5 billion in GGR or Gross Gaming Revenue. Also, the overall revenue growth for September is now expected to be in the range of 7.7-9.3 percent which was earlier speculated to be around 14.7 percent.

Keeping in view of the disruption and other travelling issues in the coming days, Deutsche Bank Securities Inc. has curtailed its overall growth estimate to 3% from 14%. Also, it has downgraded the 2019 outlook to 4% from 11% and said that Macau has started experiencing lower earnings.

On the other hand, the analysts at Morgan Stanley are optimistic that the gaming market of Macau will recover from the shocks of Typhoon Mangkhut and is poised for a 50% rebound.

Typhoon Hato

This is the second instance in the past 1 year that the casinos in Macau are severely hit by a big typhoon. Last year in August, casino operations came to a standstill by Typhoon Hato that caused untold destruction and havoc to the lives and property in Macau. At that time, the casino industry continued its operation but incurred losses to the tune of US$ 1.6 billion.

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