Macau casino shares were dealt a massive blow on Monday after the city reported a couple of COVID-19 infected people who summed up to 36. Experts have reported the first cases in the city after 8 months. It is said to be the biggest COVID outbreak yet to be experienced. The falling of Macau stocks began on June 20 due to the lack of resident and tourist traffic to the casinos.

Generally, the recent case of the COVID pandemic has prompted tighter border restrictions from mainland China. Though the casinos remain open, the closure of parks, public schools, and a majority of businesses has led to the expectation of little to no revenue from gambling in the coming weeks and possibly months.

Macau Casino Stocks Drop Massively

Some enterprises have suffered losses from the pandemic, but Wynn Macau stock was the one that experienced the most brutal hit, with a massive decrease of 3.3%. SJM Holding followed as their Macau casino stocks fell by 3.1%. MGM China and Sands China are doing better, falling slightly over 2%. Galaxy Entertainment, on the lucky side, took a minor blow to its operations, as the company’s stock levels are still in good shape.

Concerning cash liquidity and the expectation of meagre revenue from gambling operations for an extended period, SJM and Sands China have been estimated to carry operations for up to 8 months. While MGM China, SJM, and Sands China for around 18-24 months of liquidity. Galaxy Entertainment, which took the softest hit among the businesses, is estimated to last for the most extended period among the affected companies. The entertainment company has been calculated to last up to 60 months without turning a profit. In addition, from expert statistics, Macau’s six major casino operators fell by 1.9%.

With 36 positive coronavirus cases confirmed, the government of China ordered mass testing of residents between Sunday and Tuesday. Schools, galleries, and other businesses that don’t offer essential services fell victim and have remained shut down. In contrast, some restaurants and bars, along with the casinos, remain open, although with tight protective measures everyone must follow. The use of a secure internet casino through mobile phones, tabs, and laptops is now the new way through which most gambling lovers now often access their favorite activity. The use of online digital casinos has proven to be a safer line of action in line with recent happenings and to retain the casino boom.

Specific rules were implemented to reduce the number of patronizers and suspend dining-in services. Aside from the 15-day closure in February 2020, the city of Macau has not shut down its casinos, but its continuation is becoming threatened.

Mandatory Quarantine

The new COVID-19 hit is a fresh blow to the land-based gaming sector. Ever since the pandemic, the city has suffered a decrease in visits from tourists. Though people from most places in low-risk mainland China were allowed to visit Macau, recently, that has not been the case.

In a smart move to restrict the transmission of the virus to other people, the neighbouring central city of Zhuhai now requires a week of house quarantine for individuals. This quarantine would be followed by another week of self-health observation for those who arrive from Macau, regardless of their stay duration. The city’s number of visitors dropped 24% last April after a steep 30% decline in March, the previous month.

Stay at Home Mandates

During a media interview on Sunday, Ao Leong U, the Secretary for Social Affairs and Culture advised citizens to stay at home. Casino lovers affected by this law may select online sites and play to their hearts’ content without falling bored. For those who are not sure where to start, it makes sense to read review of 5$ deposit casino at Leafletcasino.com and choose an online casino. The most trustworthy and reputable online platforms are collected here in order to provide the best low-risk gaming experience while also taking care of security.  The Chinese government also implored residents not to panic-buy from markets, promising there would be enough food supplies and basic amenities for the entire public.

In breaking down the list of infected patients, the reports show two clusters, including foreign workers and people they’ve been in contact with. Furthermore, the other group is a prison worker and his family and colleagues. The hospital is handling their cases currently, and making sure no safety protocol is left unobserved.

Xi Jinping Policies – Another issue for Macau Casinos

The gambling industry has suffered enormous setbacks caused by the Covid-19 pandemic. Tight visa restrictions, lockdowns, closures, and extended quarantine periods contributed to this. Luckily, the option to enjoy the best casino cruise is also available in addition to casino sites to pick from online with just good internet connectivity and some money required. The revenue which tourists help the city generate has been tremendously reduced, with no sight of an improvement in the nearest future. Because Macau provides about 80% of the government’s revenue and has a fifth of the residents as employees, this is also a big issue.

However, the gambling market has other challenges to tackle as well. The Chinese president, Xi Jinping, has been campaigning with force against corruption and has opened various investigations on gamblers who put in a lot of money in the casinos. These investigations extend to some government officials suspected of money laundering in the city.

Concerning the policies, laws were declared in September 2021 to make underground banking illegal and install direct government officials on the casino gaming boards to control the activities. All these measures are reported to be done to reduce the rate of corruption in the country.

Conclusion

The city of Macau, a former colony of the Portuguese, is a special administrative region of China with a population of about 680,000 in an area of 12.7 square miles. Macau has the advantage of being one of the world’s biggest gambling industries, even larger than Las Vegas. Their position in the gambling world is very high due to the fact that it is banned in mainland China but allowed in Macau; therefore, the city has many people coming to and from to experience its entertainment offers.