Inside Asian Gaming

IAG APR 2022年4月 亞博匯 60 FEATURES M acau gaming stocks have endured a ro l lercoaster ride ever since the COVID-19 pandemic began wreaking havoc on the global leisure and tourism industry in early 2020. Since the first week of trading that year, the Hong Kong listed entities of Macau’s six concessionaires have seen their share price fall by between 20% (Galaxy Entertainment Group) and 70% (Wynn Macau Ltd) as of late March 2022. Yet it hasn’t all been about COVID. As reported by Inside Asian Gaming at the time, those same stocks lost 26% of their market capitalization – worth HK$143 billion (US$18.4 billion) – in a single 24-hour period on 15 September following publication by the Macau government of its gaming law public consultation discussion document, which contained a raft of suggested changes to the law which regulates casino gaming in Macau. More recently, on 7 March 2022, the combined market cap of the same six companies fell by 6.3% or HK$27.1 billion (US$3.47 billion) just days after the government extended the current licenses of the concessionaires by six months from 26 June until 31 December 2022, effectively delaying the re-tendering process for new gaming concessions. Clearly, many of the actions being undertaken by the Macau SAR Government right now have investors spooked. But are those fears justified or is Macau poised to resume its mantle as the undisputed king of the casino world? Let’s start with the good news. Gaming analysts have, for the most part, remained bullish on Macau’s long-term prospects even while mainland China – and therefore Macau as well – continues to pursue a zero- COVID policy that has kept the borders shut tight. Vitaly Umansky, Managing Director & Senior Analyst – Global Gaming for asset management firm Bernstein, writes in recent notes that, “While the timing of full travel resumption into Macau from Hong Kong and mainland China remains unclear, we see several steps to reopening travel occurring during the spring and summer of 2022 which will drive solid mass recovery in 2H22.” Although that reopening date may be further delayed given the recent outbreaks in Hong