The Trade War Between the US and China Will Probably Not Affect Macau Casinos

It seems that the casinos in Macau that are owned by the American companies will not be heavily affected by the ongoing trade war that the US and China had started a couple of months ago, an analyst states.


According to CNBC, the head of CLSA Gaming and head of Conglomerates, Jonathan Galligan, stated that he thought China would take a rational approach to Macau. He stated that pressure on some of the operators in Macau would definitely not help them with achieving their ultimate goal.

During his speech in a forum that took place in Hong Kong, Galligan noticed that the US companies had had a great effect on the overall economy of Macau and had played a huge role in transforming it after it became an administrative region in China (which happened after the 400 years under the rule of Portugal).

During the year 2001, the government of Macau ended the monopoly on the casinos in this area held by Stanley Ho. They later allowed six casino operators to open their venues in that area, and some of them were from the US – Wynn Resorts, MGM Resorts, and Las Vegas Sands.

Some of the speculations stated that China would use Macau as a pawn in their trade war in the US and eventually remove the US operators from being able to have casinos in this city. However, Galligan stated that the Chinese would probably not do that as there was a very healthy and positive competition between the casinos in Macau at the moment, making every side happy and flourishing.

The whole thing with the trade war started when the President of the United States decided to impose tariffs on the goods coming in from China in order to protect the economy and jobs in America. It seems that the sum of $200 billion which was expected to be received this week will have to wait as the negotiations between the two countries are still underway and there are still many possibilities available before the final deal takes place.

Recently, Trump stated on his Twitter account that the American side is not in a hurry since their economy was doing pretty good, while the Chinese economy was collapsing. He added that the billions from the tariffs would soon enter the US.

The tensions between the two powerful countries are still raising. However, Macau has been doing pretty good. They had a rise of 19.1% in gross gaming revenue compared to the same period during 2017, which is great for them and finally happened after the three long years where the decline was more present.

The future is uncertain when it comes to the trade war, but it seems that Galligan has a point when stating that the casinos are generating huge income and really positively affect the Macau economy.

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