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Macau Gaming Regulator Orders Casinos to Cut Staff by 90% Amid COVID-19 Resurgence
By Jeff Osienya Jul 03, 2022 IndustryAccording to unconfirmed reports, Macau’s gaming industry ombudsman has ordered casinos to reduce their workforce by 90% in a bid to curb the resurgence of Coronavirus cases. This pandemic is again dealing a hefty blow to the region’s economic backbone.Macau, the world’s largest gaming hub, is experiencing unprecedented but familiar setbacks in its economic lifeblood – the casino industry. But, just as most of the global gaming sector is recovering from the adverse effects of the COVID-19 pandemic, it seems like the raging virus isn’t done with China’s Special Administrative Region (SAR).
Mind you, the damage caused by COVID-19 isn’t selective to the casino’s scene alone, as most businesses in the Chinese-controlled settlement are shutting down. However, casinos are open since 80% of Macau’s income comes from the land-based gaming sector. Closing down all the casinos would be tantamount to crippling the already frail economy.
There had been echoes of cautious optimism among the masses that a series of lockdowns could curtail the recent COVID-19 flare-up. However, the recent spurge of 620 infections (The highest since the very first cases were reported in December 2019) has seen those hopes slowly fade away.
Bad News for Macau Casino Employees
The COVID-19 pandemic spells terrible news for staff in casinos in the Chinese SAR. This is because the Macau Gaming Inspection and Coordination Bureau, or the DICJ as it goes by its Portuguese acronym, has decided to send 90% of casino staff home. While the DICJ has yet to make a public pronouncement on the matter, well-placed sources in the Macau gaming scene certainly point to a forced shift in operations in the Macau gaming sector. It is, however, expected that the DICJ will soon make an official public service announcement.
The Macau government had earlier expressed its intention to enforce a nucleic acid test certificate requirement with 48-hour validity for casino staff, casino customers, and any other visitors to casinos. Those plans were aimed at curbing the COVID-19 spread. However, the Macau government has put those plans on hold owing to the long queues of workers waiting to be tested, which in itself presented a super-spreader potential occurrence.
Adverse Effects of the Pandemic Being Felt Again in Macau Casinos
Besides the fact that casinos will likely have to retain a mere 10% of their workforces, casino businesses across Macau have generally been hit hard by the pandemic. As a result, shares of most of the notable Macau Casinos continue to plummet daily, with names such as Sands China, MGM China, Wynn Macau, Galaxy Entertainment, Melco, and SJM Holdings experiencing a horrid week on the stock exchange.
Macau’s gross gaming revenue went down by 60% year-on-year in April and May, representing a dire picture of the gaming scene as of now. Moreover, visitation has also maintained a paltry 20% of the pre-covid levels, indicating a strenuous journey ahead in the Macau gaming sector’s road to recovery. Even more concerning is the fact that the latest surge of the pandemic has come on the back of conversations surrounding the change to some of Macau’s gaming laws.
Plans Are Rife for The New Gaming Bill
Amid the crisis facing the SAR and, more specifically, the gaming industry, Macau has set aside plans for a new gaming bill. Macau’s legislature recently released a final draft of the highly anticipated gaming bill to introduce a higher tax rate and give officials greater oversight over casino operations. Barring any exceptional occurrence, it is expected that the gambling bill, which will mark Macau’s biggest reform in two decades, should the draft bill sail through the legislature seamlessly.
In the same breath, the Macau government has formally signed a six-month license extension for casino operators. The six months will give ample time to operators ahead of what is expected to be a highly competitive operator bidding process in the Chinese SAR in December.
What Next for Macau?
The casino doors will continue to remain open in the meantime in Macau. Other entertainment spots will, however, remain shut while the world’s largest gaming hub continues to battle the COVID-19 virus. Bars, nightclubs, cinemas, gyms, and hair salons will be required to close their business by 5 pm every day. In addition, schools have already been shut down in efforts to curtail the virus.
Meanwhile, casinos will not face any restrictions and shall remain open unless they find a COVID-19 case on their individual premises. The gaming Mecca will have to deal with a plethora of COVID-19 prevention measures, especially after mainland China’s strict COVID zero policy implementation.
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