US Casino Operators In Macau Not At Risk Of Concession Loss

Brokerage firm Sanford C. Bernstein Ltd has said in a note to investors that it is highly unlikely that any US owned concessions in Macau could lose their right to operate casinos resorts when the next round of tendering process for licenses in June 2022.

Although it seems likely that the tendering process maybe extended to 2023 because of the huge impact COVID-19 has on the industry in Macau the brokerage firm said that: “We view the scenario where one or more of the U.S. casino operators lose their gaming concession to be remote, unless the [U.S.-China] relationship sours significantly further and we see directed action against U.S. businesses in China, which would raise risk levels in Macau as well.”

Currently China and the US are at loggerheads with their own trade deal and relations have worsened over recent times, however any thought that China may use the US companies in Macau to bargain or pressurise the US government on the trade deal seems highly unlikely now as the disruption to global business due to the pandemic would severely impact on both countries.