The U.S. is home to prominent casino operators who have expanded their businesses worldwide. One of these markets is Macau, an island inside China. It is also one of the most profitable gaming destinations for years.
In the past few years, Macau has had challenging times. This means struggles for companies that run casinos in Macau. But, following the latest announcement from Macau, the U.S. casino stock prices have increased.
Mainland China has actively tracked illegal gambling operators in Macau. Moreover, it has imposed strict travel restrictions to curb the spread of the Coronavirus. As if these woes are not enough, most operating licenses are expiring, which means the U.S casino operators’ time in Macau is almost up.
However, the operators can now celebrate after Macau decides to renew licenses. This time, each casino operator will get a 10-year contract.
With this clarification of the regulation, most casino stock prices in the U.S. have surged. Companies including Wynn Resorts, MGM Resorts International, and the Las Vegas Sands have confirmed their increased share prices. Wynn Resorts went ahead and released a statement regarding the issue.
The statement mentions that Macao’s Executive Council had carefully considered several things before revising the gaming law, including the public’s opinion. Wynn Resort also wrote that the overall language and details provided by the new changes were encouraging.
Yet, Macau’s casino market is far from stabilizing. Some experts are actively discussing what must happen for the market to return to its former glory.
Macau’s Casino Market Might Continue to Struggle
Many casino businesses struggled following the spread of the COVID-19 virus. Some experienced the effects badly, while others fared well. Macau was one of the gambling hubs that took one of the biggest losses.
In fact, the city has not left reporters’ mouths since January 2020. This raises questions on how it will be fair this year. Analysts are divided about the subject.
Some think this is the year Macau will return to its glory, while others disagree and feel it might worsen. Considering the issue of renewing licenses has been cleared, U.S. casino operators might invest more in their Macau properties.
But, China’s government does not seem to loosen its grip on the city. It will likely continue cracking down on the gambling industry. What’s worse, it will continue imposing the city with travel restrictions.
On the other hand, investors of U.S. casinos are optimistic. Being the most prominent gambling operators globally, they feel everything will change for the better. Whether this will be true depends on how events turn out in the next 12 months.
The U.S. Casino Market Is Thriving
The answer to whether the Macau casino market will recover is still unclear. But, what is clear is that the U.S. casino industry is thriving. Early 2022 shows that it will be the best year yet for casinos in the USA.
Already, Atlantic City and Las Vegas have recorded huge numbers of tourists. This number will likely go up this year. This is an indication that casinos might record break revenue.
When you look at smaller gambling markets such as Pennsylvania and Massachusetts, casino revenue has also increased. Most other states want to expand their gambling industry.
For now, it is still early to give accurate predictions. We have to wait and see how the market unfolds.
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