Casino shutdown in Macau could continue

Macau wants to control the coronavirus and prevent it from spreading any further.
Macau wants to control the coronavirus and prevent it from spreading any further.

Brokerage Bernstein said that there is a strong possibility that the casino shutdown order could extend for another period in Macau.

Macau.- Brokerage Sanforc C. Bernstein Ltd issued a note on Tuesday in which it said that there is a strong possibility that the casino shutdown order in Macau could extend for another period. This decision is affecting casinos’ finances and it seems like the coronavirus spread will keep affecting them.

Bernstein didn’t specify why there is a strong possibility of an extension of the shutdown order, and it also avoided details as to how long the shutdown may last. The current shutdown period is expected to run until February 19.

“[Casino business] forecasts for the near term (1H20) are largely guesses at this time, with the biggest variables being when casinos reopen, and even more importantly, when travel restrictions from China will be lifted,” said Bernstein.

Financial estimations

The brokerage said that month-to-date average daily rate number is a negative 74% year compared with February 2019. “For Macau, the near term looks bleak, and GGR collapsed beginning from Chinese New Year on the back of the Wuhan coronavirus crisis,” said the analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu.

However, analysts agree that there will be a solid recovery in the second half of the year, and a stronger 2021.

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