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Thursday, March 28, 2024

How Are Gambling Operators in Asia Doing During the Corona Crisis? 

Gambling operations in Asia are part of a multimillion-dollar industry that earns the government significant revenues. These operations came to a halt after the outbreak of the Coronavirus. The timing could not be any worse: The disease broke out during the peak season, thus making for a major blow to the shares of gambling companies while threatening the flow of revenue.

At the start of the epidemic, most Las Vegas giants lost up to $18 billion of their market value in their Macau operations. These companies included MGM, Sands, and Wynn. During this time, the pandemic ad claimed 200 lives in China, a reality that saw people desert even the best brands in the gaming industry.

One region is of particular interest when it comes to gambling in China – Macau. Macau is the only region in China where gambling is permitted. Gambling operations became popular after 1999. In 2006, the activities surpassed gambling services in Las Vegas in terms of revenue. Currently, gambling operations in Macau shrink that in the US.

Chinese gamblers account for huge takings at Macau – up to four-fifths. However, threats from COVID-19 has led authorities to suspend travels to Macau from Mainland China. According to data, the number of Chinese visitors from the mainland dropped by ninety percent during the lunar New Year season this year, compared to last year’s data.

Officials from Macau City asked 41 casinos to shut down their operations for fifteen days in a bid to contain the spread of COVID-19 that was affecting China and the entire Asia region. It was back in February. The move hit American casinos such as Las Vegas Sands and Wynn, who run primary operations in Macau. Local companies were also affected. In turn, the economy of the region was utterly paralyzed.

There is no doubt that the Pandemic harmed Macau’s gaming industry. However, looking at the silver line on the cloud, one realizes that there is a great lesson that could be learned by casinos operating in Macau. The Pandemic served as a wake-up call for players in the Macau gaming industry to embrace online gambling. This lesson should extend to the Chinese government to decriminalize online gambling in the country.

The Coronavirus pandemic pushed most gamblers in the region to participate in illegal online gambling activities. Most of these operations were facilitated by operations from one country in Asia where online gambling was decriminalized – the Philippines. Data showed that online gambling activities shot up by ninety percent during the lunar New Year celebrations. This figure is significant. It, therefore, begs the question, should land-based casino owners be consulting online operators in a bid to find ways of going online?

Online gambling has not yet fully developed in Asia. In Asian, it is mostly run by unregulated operators. However, it is illegal in China and punishable by law. In spite of most online gambling activities being unchecked, the land-based casinos are not experiencing much of the action one would expect. Instead, most of the licensed operators from the Philippines are getting much of the action.

Currently, Macau Casinos are opening their doors to business as Las Vegas shut down operations in the fight against COVID-19. Macau has a well-developed infrastructure, from great roads to huge skyscrapers that challenge your idea of reality. It takes a one-hour ferry ride from Hong Kong to Macau and four hours flight from Beijing.

The Pandemic has changed the number of tourists to Macau. In 2019, the city hosted more than 108000 visitors on a daily basis. Today, it hosts only 50,000 every week, many of who are visitors from Hong Kong. Casino operations are at fifty percent efficiency, with most only operating with half of their tables. Macau hosted 250,000 visitors in their re-opening month, signalling a ninety-two percent drop of visitors compared to 2019. The health workers inspect players before allowing them into the casinos. Additionally, everyone is required to put on a face mask.

Since the outbreak of COVID-19, gambling operations in Asia have been greatly reduced. However, a crucial revelation has been made. Land-based casino operators have been given a sneak peek of the veracity of online gambling and like Vera John Casino, more are bound to embrace and perfect the art..