Corona in Macau: Casino closure

Corona infection numbers have been increasing in Macau for weeks; Now the government has reacted with restrictions. The many casinos in the Chinese special administration zone are particularly affected, which all had to close their gates due to the opposing virus. The responsible authorities announced last weekend that all 30 casinos in the world’s largest gambling metropolis remain closed for a week for the time being.

Macau becomes a ghost town

There has been another state-related state of emergency in Macau since Monday. The government of the Chinese special administrative zone has until July 18th economic restrictions decidedthat includes all commercial and industrial companies, shops and restaurants. Only vital facilities such as supermarkets are still open.

With the drastic measures, politics has reacted to the increasing new infections of the past few weeks. The restrictions should Demree spread the virusHowever, have ensured that the metropolis of a ghost town, which is actually pulsating in front of life.

The political order mainly affects that most important economic mainstay of the metropolis – Gambling. Macau houses around 30 casinos that are no longer allowed to receive visitors. According to various media reports, temporary time -out will add significant financial damage to the city.

No lockdown. In an official statement, André Cheong Weng Chon, Minister of Administration and Justice of Macau, announced that the measures were not a real lockdown. The government does not prohibit the population out of the outcome, but hopes to prevent potential accumulation of people by closing the commercial businesses and thus prevent the virus.

Serious consequences for casinos

The gambling industry in Macau had to struggle with enormous losses and mass notice during the high phase of Corona pandemic. Some casinos were even over. But the industry got away with a blue eye and was able to build on the economic performance before corona.

The renewed virus-related restrictions are now accordingly A bitter setback for the casinos in the metropolis. The industry had feared a few weeks ago due to the increasing number of cases that politics would react, but the actual installation of the measures is still a blow to the casino operators. Is at the same time A new gambling law On the way, which will also cause unrest after surviving crisis.

Grand Lisboa Casino. For a long time, the government tried to maintain social and economic activity in the city. However, the high number of cases left politics no other choice than to take drastic measures. The Grand Lisboa Casino, which was immediately closed by the authorities, started last week after several people had been positively tested for Covid-19.

Even if a wave of termination, as in Lockdown times, is rather excluded, the workforce of the various casinos should once again have a difficult phase. The city administration explained that the operators of the local gaming facility are not legally obliged to do so during the closure to pay the wages.

Casino shares in free fall

The hard procedure against the Corona virus in Macau goes on the strict zero-covid strategy Back that has been driven in China for a long time. Nevertheless, Macau is autonomous as a special administrative zone, the gaming metropolis can do not completely deprive the influence of Beijing.

Null-Covid-Strategie The extermination of the Coronavirus has all the top priority in China, since Covid meets “nutrient soil” in the communist state. Most of the older ones are still unasprural. In addition, the Chinese vaccine is not as effective as foreign mRNA vaccines. However, these are strictly rejected by the political leadership. The whole procedure has a fatal consequence for the local population. Millions of people in the country suffer.

The Chinese influence and the associated closure of the casinos in Macau at the beginning of this week had a relative Heavy quake on the financial markets taken care of. The news of the “Lockdown Light” caused the stock prices of the city’s largest casino operators strongly decrease.

So “Sands China” had to be one Loss of 8.15 percent accept, while the “Wynn Macau” share fell by 6.68 percent. The situation was similar “Melco International”. The group’s course fell by 7.13 percent. “Galaxy Entertainment” (4.93 percent) and “MGM China” (5.36 percent) were also doomed by the government.

According to market analysts, the free fall of the casino shares would not have been so serious if Macau would not fight the Corona outbreak as strictly and drastically. The investors would have essential more prudent to the situationIf the government in the Chinese special administrative zone had not decided to pull the ripcord immediately. Even the delayed recovery of the local gaming market would have overlooked investors.