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Macau Casino stocks surge as China lifts quarantine rules

Posted:: Jul 14, 2020 10:32 Category: Asia , Casino , Posted by
sw

As from tomorrow, Macau will no longer be subject to a mandatory 14-day quarantine

Macau, the world’s largest gambling hub will no longer be subject to a mandatory 14-day quarantine, effective Wednesday. The provincial government of neighboring Guangdong in China agreed to lift quarantine requirements for travelers returning from neighboring Macau, making it easier for gamblers to cross the border.   

Guangdong gears up to promote high-quality development - CGTNGuangdong is China’s most populous province with over 113 million residents and the closest to Macau in geographic terms. This province is the single largest source of gamblers for Macau’s casinos and quarantine was thus seen as the biggest limit to Macau’s ability to generate revenues. 

All individuals seeking Guangdong access will need to provide a negative COVID result from an approved testing site and apply for entry at least 24 hours prior to arrival. 

Bernstein Research quickly issued a note describing this as “a step in the right direction.”  Markets strongly welcomed the news with the stock values of the Macau concessionaires rising handsomely in the wake of the announcement. Wynn Macau Ltd. was up as much as 16% set for its best day in a decade, Las Vegas Sands stocks increased 7.5% and Melco was up 17%. 

JPMorgan Chase & Co. expects gross gaming revenue to improve to 20%-25% of 2019 levels following the border opening with further relaxing of travel restrictions expected. 

As we reported last week Casinos in the autonomous city-state Macau is still expected to post a loss of over 1 Billion USD by the end of the year.  

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