Wynn Losing $2.6m a Day Due to Macau Casino Closure

  • Casinos in Macau have been closed for two weeks to stop the spread of coronavirus
  • Executives communicating with local authorities to determine how the outbreak can be contained
  • Focused on the health and safety of staff members, customers, and the entire Macau community
Wynn Palace in Macau
Wynn Resorts CEO Matt Maddox has revealed that the casino closure in Macau is costing the company approximately $2.6m a day. [Image: Shutterstock.com]

Losing out on millions every day

The deadly coronavirus outbreak has caused casinos in Macau to close for around two weeks in a bid to stop the virus spreading. As a result, it is costing casino operators in the region a lot of money.

operating expenses total between $2.4m and $2.6m a day while casinos remain closed

During an earnings call earlier this week, Wynn Resorts CEO Matt Maddox highlighted the impact the closure is having on the company. Maddox revealed that operating expenses total between $2.4m and $2.6m a day while casinos remain closed.

Wynn suffering more than most

According to Moody’s Investors Service analysts, Wynn Resorts has more to lose than other Macau operators like the Sands and MGM. For Wynn, the majority of their overall revenues come that that area.

Macau relies heavily on the gambling industry. The region welcomes millions of people from mainland China to their many casinos. The global outbreak of coronavirus has scared tourists away and has resulted in the government requesting for casinos to close in a bid to contain the virus.

Wynn Macau closed its doors at midnight on Wednesday. Since that time, company executives have continued to talk with local officials about how the virus can be contained.

During the earnings call, Maddox emphasized that the company supports efforts to contain the virus. He said Wynn Resorts is “currently focused almost solely on the health and safety of our employees, our customers and the Macau community at large.”

Temporary closure

Earlier this week, Macau Chief Executive Ho lat Seng announced the temporary closure of casinos until the deadly coronavirus has been contained. He stated that the two week time frame could be extended if the virus continues to spread on the island.

This week, Macau confirmed as many as 10 cases of the virus in the region. Of the confirmed cases, one female works in the gaming industry. In China, the coronavirus has killed over 400 people and tens of thousands have contracted it. The virus continues to spread and has reached over 20 nations across the globe.

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