WeChat Ban Creates Major Concerns For US Operators

According to sources in Macau the move by President Donald Trump to ban the use of Social Messaging service “WeChat” could cause major repercussions for US casino operators in Macau.

Last week the US President used his executive order to ban the use of the Chinese social media app “WeChat” from any US companies or citizens from using it when the order takes effect in the next 45 days. This follows the directive from Donald Trump to outlaw the use of TikTok another media app owned by Chinese technology company ByteDance.

Macau has some 95% of its customers coming from mainland China and the majority of communication used by casino operatives to their Chinese customers is from WeChat. It is hugely popular in China which is known by the name “Weixin” for engaging customers to their casino resorts.

Should the ban come into effect it would mean all US companies holding licenses in Macau along with their staff would not be allowed to use the service giving Macau based operators such as Galaxy, Melco and SJM a huge advantage?

One gaming consultant told the iGaming Post, “Imagine if only half the operators in Macau could speak to Chinese gamblers but the other half could not; well we all know who are going to be the winners there.”

As gambling advertising is illegal on the mainland all communication from casino operators is in a grey area already, but all use the WeChat app to communicate offerings and promotions.

It is still not totally clear on how the ban will be enforced for US companies working overseas, the worst possible scenario would be a complete ban on any transactions by US companies. This really would place those companies in a precarious position of either continuing to work with WeChat and face the wrath of the US authorities or basically lose communication with their customers.

One insider within the gaming industry in Macau said, “Surely the US President is not going to disadvantage US companies overseas with this blanket ban.”

Another major worry for US operators such as Wynn, MGM and Las Vegas Sands is that their license concessions are due for renewal in 2022 and the current conflict with the US and China with Chinese technology companies could spill over to those concession renewals then.

All of those US companies heavily depend on their Macau revenues to sustain their US businesses, with the possible Armageddon of losing their licenses in Macau would be disaster for those companies and employees.