Macau casinos reopen – how bad was the damage?
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Coronavirus hit the world out of the blue and as for now, more than 75,000 people are infected with the deadly virus worldwide. The death toll currently stands at 2012, as France recorded the first one in Europe last week. Macau, one of the world’s largest gambling hubs is also under a great threat due to its proximity to China. In total, 10 people were infected in the city after the outbreak began. However, there has not been a newly recorded case after February 4th.
The government pushed for the suspension of the casino operations of February 5th in an attempt to stop the spread of the virus in the city. The decision was made after it turned out that 2 out of 10 infected in Macau were casino employees. However, it was now announced that the casinos will be able to go restart operations on Thursday, after an unprecedented 15 day-long shutdown. The ban remains in place for a number of entertainment venues, including cinemas, pubs and karaoke bars. At the same time, casino visitors will have to wear facemasks before entering and will also be scanned for the temperature at the entrances.
A shutdown is a historical event since the industry generates a significant portion of wealth in the city. Besides being the longest in history, it will likely have a major economic impact on Macau.
In fact, the shutdown was such a major event for the whole gambling industry that betting options started appearing on multiple foreign platforms on how much the city would lose before the re-opening.
One of the weirdest platforms that these options appeared on were Norwegian bookmakers, or NYE bookmakere as they’re originally referred to in the Nordics. Due to the extremely restricted environment in the country about sports betting, a wagering option for Macau’s closing was perceived as a small loophole. Similar cases can be seen almost all over the world.
“Besides being the longest in history, it will likely have a major economic impact on Macau.”
It was indeed a big hit
The City’s 41 casinos along with the gaming industry employ an estimated 56,000 people, 8% of its population. Besides them, non-resident workers commuting from mainland China are affected as well. The estimates
A member of the legislative assembly of Macau Au Kam-san asserted on the matter, stating that the end of suspension was anticipated: “Gaming industry is too important to Macau. The government could not afford to let it close for too long. There could also be pressure from the casino operators. Because they are still paying the staff while the casinos are closed.”
It has also been said that the workers from mainland China will have to go through special procedures before re-entering Macau. This again is to reduce the risks of further spread of coronavirus. However, the long incubation period requires a 14-day long quarantine, which is very unfeasible for every side. On this, Kam-san commented: “Some 60,000 to 70,000 people travel across the border every day to work in Macau. Your business just can’t operate if they have to be quarantined for 14 days when they enter Macau”.
high profile Macau health officials also stated that the city’s residents would also have to go through similar procedures if the risks arise. Under such circumstances, the city’s gambling industry would be even under a bigger threat, since the shortage of Chinese workers is already making an outstanding economic impact on Macau’s economy.
Macau’s casinos took in roughly $37,6 billion in 2018 as total revenues hit historic records. Gambling tourism represents up to 50% of the city’s economy, making it a crucial field for its financial stability. It is difficult to project an exact impact of a 15-day long closure on Macau and its residents, but it is clear that the final outcome will not be positive for the city’s gambling industry this year.
Questions & Answers
Q.Why did the Macau government decide to close the casinos in the first place?
Why did the Macau government decide to close the casinos in the first place?
The government pushed for the suspension of casino operations after two out of the ten infected people in Macau were identified as casino employees. This decision aimed to prevent further spread of the virus within the city.
Q.What measures are being put in place for visitors to Macau's casinos once they reopen?
What measures are being put in place for visitors to Macau's casinos once they reopen?
Casino visitors will be required to wear facemasks before entering the premises. Also, all entrants will undergo temperature scans at the entrances to mitigate health risks.
Q.What percentage of Macau's population is employed by the gambling industry?
What percentage of Macau's population is employed by the gambling industry?
The city's 41 casinos and the wider gaming industry employ an estimated 56,000 people. This figure represents 8% of Macau's total population.
Q.What proportion of Macau's economy is generated by gambling tourism?
What proportion of Macau's economy is generated by gambling tourism?
Gambling tourism constitutes up to 50% of the city's overall economy. This makes it an essential sector for Macau's financial stability.