Gaming Stocks Increase as U.K. Approves COVID-19 Vaccine

The government of the United Kingdom was officially the first one to approve one of the available vaccines and prepare the population for widespread vaccination to combat the COVID-19 pandemic. The first ones to get the protection from COVID-19 will be the higher-risk groups, such as the elderly, immuno-compromised individuals, and frontline medical workers.

After that, the country will begin vaccinating most of the residents until herd immunity is achieved. It remains unclear how much time that will take, but the good news is that we’ve seen some great responses finance-wise, as the gaming industry immediately responded to this.

Casinos around the globe have been getting by, with most either closed or operating at limited capacity. Vaccine approval could mean that they would be allowed to operate at full capacity once again, and the stock market surrounding casinos reflects that optimism. Casinos are finally getting some support, and it happened to be right after the U.K.’s Department of Health and Social Care (DHSC) announced that they would start vaccinating citizens as early as December 8.

Another place that also heavily relies on gaming as the primary source of income is Macau. Macau’s economy has been performing poorly throughout the year. However, it seems that Macau residents could also receive the vaccine by the end of 2020, which would be welcome news for the Southeast Asian gambling Mecca.

How Was the Vaccine Approved in the U.K.?

The Medicines and Healthcare Products Regulatory Authority (MHRA) sent a recommendation letter to the DHSC, which then had to review their findings and decide what to do with the vaccine. Even though the U.K. had its own team developing a vaccine, U.K. officials settled for the United States’ Pfizer vaccine and Germany’s BioNTech vaccine.

After accepting the recommendation, the health agency made a statement saying that there was a thorough analysis of the data and “months of rigorous clinical trials.” After that, the MHRA officially concluded that the vaccine had met the “strict standards of safety, quality, and effectiveness.”

In the statement, the DHSC also pointed out the joint committee on vaccination and immunization will release up-to-date information for those who are to receive the vaccine first — the priority groups. These groups have already been determined. They will be care home residents, health and care staff, the elderly, and those who are determined to be extremely vulnerable to COVID-19 (people with underlying conditions).

Casino Stocks Jump

Casino stocks suddenly increased following the news. Wynn Resorts increased by 2.77%, and MGM Resorts made an increase of 1.87%. Las Vegas Sands also recorded an improvement of 1.75% after the news. The stock bumps all happened approximately a day after the vaccine news was announced.

Asian operators also reported an increase, as MGM China climbed by 4.16%, Sands China by 1.11%, and Wynn Macau by 1.16%.

Caesars Entertainment and Melco Resorts also recorded an uptick, albeit a small one. They go an increase of 0.97% and 0.11% respectively.

All eyes are now focused on Macau, which is one of the dominant forces in the gambling industry and already preparing for widespread vaccination.

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