Clouds darken for U.S. operators in Macau

The COVID-19 pandemic has taken a huge toll on casino revenues in Macau with U.S. operators such as Wynn Resorts and Las Vegas Sands bleeding more than $2 million a day in the 2020 second quarter. To make matters worse, President Trump’s spats with China continue on multiple fronts such as the “China virus”, tariffs, Chinese expansion in the South China Sea and allegations of spying. The latest salvos fired by the Trump administration are the banning of TikTok and prohibiting U.S. citizens and companies from using WeChat in their business dealings.  Over 90 percent of communication that Macau casinos have with their customers in the Mainland is carried out using WeChat. The three U.S. operators in Macau could therefore face a serious competitive disadvantage in marketing to their customers. Long term, all concessions in Macau come up for renewal in 2022, and the actions of the U.S. government could also...

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