Macau government orders casinos to close for COVID-19 outbreak

Macau's government ordered casinos and all non-essential businesses to suspend operations from 11 July to 18 July 2022 to control a COVID-19 outbreak in the city, according to the Venetian Macau annual report filed with the city's gambling regulator¹. The order was later extended to 22 July 2022¹. Reuters described it as the government shutting down casinos for the first time in more than two years², and reported that the closure began on Monday 11 July².

The announcement was made at a Saturday afternoon pandemic press conference by Cheong Weng Chon, Macau's Secretary for Administration and Justice, who said Chief Executive Ho Iat Seng would issue an order suspending the operations of all companies and venues engaged in industrial and commercial activity from 11 to 18 July³. He said the venues required to close included casinos, while markets, supermarkets, restaurants, beverage and food premises, pharmacies and health care facilities had to keep operating³. Restaurants, beverage and food premises could only offer takeaway, not dine-in service³.

Macau recorded 71 new positive cases the day before the announcement, taking the total to 1,374 since a local outbreak began on 18 June³. The previous week authorities had closed the Grand Lisboa casino hotel, a Macau landmark, after 13 cases were detected and more than 500 people were locked inside the casino³. That was the first closure of a gambling venue in Macau in more than two years³.

Preventive measures were gradually reduced in August, and restrictions on travel between Macau and Zhuhai were progressively relaxed by the Macau and mainland Chinese governments¹.

The closure came as Macau's six casino operators prepared to bid for new licenses, with their existing contracts due to expire at the end of 2022². Analysts estimated the casinos were burning through about $600 million each month because of COVID restrictions even before the 11 July closure². Sands China said on Monday 11 July that it had secured a $1 billion loan from parent Las Vegas Sands to support its working capital, which an analyst said would give Sands enough liquidity to keep going for 15 months, while Wynn announced a $500 million loan from its Las Vegas parent in June². SJM had about one month left in cash reserves if casinos remained closed, with an analyst expecting it to tap parent STDM for a HK$5 billion ($637 million) loan².

The industry accounts for more than 80 percent of government tax income, and casinos have paid more than $160 billion in taxes to Macau's government since 2002².

What it means for players

During the closure, no casino floor in Macau was open to any player, whether local, expat or visitor, and non-essential businesses were shut as well¹. Food and drink outlets could serve takeaway only, and cinemas, beauty salons, bars, barber shops and public pools stayed closed³. When casinos reopened from 23 July, capacity was limited by a rule capping casino staff on site at any one time at 50 percent, which affected how many tables and machines could operate¹. All social distancing requirements at the group's properties, including reduced numbers of gaming table seats and activated slot machines on casino floors compared with pre-COVID levels, were lifted in early January 2023¹.

What happens next

The company's bank guarantees were released¹.