Online visa application process could boost visitation to Macao

Casino operators in Macao are hoping a resumed policy allowing potential visitors to register for visas online will spark travel to the only place in China where gambling is legal.

Macao’s Gaming Inspection and Coordination Bureau on Tuesday reported improved gross gaming revenue results for the month of October, as operators — including Las Vegas-based companies — face a slow recovery after pandemic-related restrictions.

The bureau said Macao’s 39 casinos generated $482.4 million (U.S.) in revenue for the month, 10.7 percent less than in October 2021, but 31 percent higher than in September. It was the highest revenue total since February.

While the revenue picture is improving in Macao, 2022 will go down as another disappointing year. For the first 10 months of the year, casino revenue is at $4.42 billion, down 50.5 percent from the $8.93 billion reported in the first 10 months of 2021.

The best year Macao has had in the past decade was in 2013, when casinos collected $44.6 billion, according to the bureau.

Casino operators are now hoping that an online visa application process that took effect Tuesday will increase the number of visitors to Macao in the future.

For the last 2 1/2 years, potential visitors from the Chinese mainland had to appear in person to a National Immigration Administration center to apply for a visa to visit Hong Kong or Macao.

The Chinese government said its decision to resume online applications for visas was due to high demand and the belief that COVID-19 is relatively contained.

That idea took a hit last week when MGM Cotai, MGM Resorts International’s resort on the Cotai Strip, was shut down by Macao health authorities after it was discovered that a dealer at the property tested positive for COVID-19.

Resort employees and visitors at the property were confined to the building in a lockdown Sunday. They were expected to be released Tuesday.

Revenue in Macao is important to two other Las Vegas companies, Las Vegas Sands Corp. and Wynn Resorts Ltd.

In an Oct. 19 earnings call, Sands executives said they remain confident a rebound will come to Macao, where the company is the market leader. In the meantime, Sands is capitalizing on positive results at its Marina Bay Sands property in Singapore.

Wynn operates Wynn and Encore Macau as well as Wynn Palace across the street from MGM Cotai.

The six casino operators in Macao — MGM, Sands, Wynn, Galaxy Entertainment, Melco Resorts and SJM Holdings — are awaiting a government decision on relicensing. Those companies and Malaysia’s Genting Group have applied for licensing for six concessions expected to be awarded by the government by the end of the year.

All three Las Vegas casino companies with properties in Macao had higher stock prices at Tuesday’s closing bell.

Wynn climbed the most, up $3.96, or 6.2 percent, to $67.86 a share. After hours, shares fell by 0.35 cents, 0.52 percent, to $67.51 a share in trading about twice the daily average.

Sands shares were up 63 cents a share, 1.66 percent, to close at $38.64 a share, with after-hours numbers up 36 cents, 0.93 percent, to $39 on slightly above average volume.

MGM shares were up 37 cents, 1.04 percent, to $35.94 a share, with after-hours trading up another 75 cents, 2.09 percent, to $36.69 a share in average trading.

The Review-Journal is owned by the Adelson family, including Dr. Miriam Adelson, majority shareholder of Las Vegas Sands Corp., and Las Vegas Sands President and COO Patrick Dumont.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.