Macau has extended its suspension order for non-essential businesses for a further five days. This means casinos will remain closed until at least July 23, though it remains unknown whether authorities will stick to the plan or extend the lockdown measures further.

Casinos Continue to Take a Hit

Macau’s gaming venues have been forced to shut their doors on July 11 for the first time in two years due to a fresh wave of COVID-19 infections spreading throughout the city. 

The ongoing restrictions have had a significant impact on casino operations across Macau. The latest onset of the pandemic in the city which began in June resulted in strict travel restrictions and low tourist numbers. All of these led to the lowest monthly gross gaming revenue (GGR) for the industry since September 2020, which stood at just MOP2.48 billion (US$306.8 million). 

Casino GGR will be much worse in the third quarter, according to global rating firms. Moody’s Investors Service said in a recent update that GGR for the mass segment will continue to be weak at just 30% of 2019’s figures. The weak performance will extend through next year, with the industry likely to see some improvement only in 2024.

More Testing to be Conducted

With the recent lockdown extension, affected businesses will remain shut for a further five days, during which authorities will conduct additional rounds of mandatory nucleic acid testing (NAT) for all residents. As of Friday, July 15, Macau has recorded 1,706 total positive cases. 

The campaign to build Japan’s first casino in Osaka has gained momentum after candidates backing the idea won seats in the recent national election. 

All four available seats in the upper chamber went to the parties supporting the city’s integrated resort (IR) plan. Two seats went to the Japan Restoration Party, while the remaining two were won by the Liberal Democratic Party and Komeito.

No Upper Chamber Seats for Anti-Casino Parties

Meanwhile, those running under the casino opposition banner failed to secure a seat in the House of Councillors. The two parties that strongly oppose the Osaka IR development, the Japanese Communist Party and the Constitutional Democratic Party, performed poorly during July 10’s polls. Their manifesto included a policy that would block the development of casinos in Osaka.   

The election was held just two days after the assassination of former Prime Minister Shinzo Abe, who was well-known for spearheading the IR concept.

National Gov. Could Decide on IR Project in Autumn

Osaka is planning to build a JPY1.08 trillion (US$7.9 billion) integrated resort in Yumeshima, an artificial island in Osaka Bay. It will be constructed via a private partnership with US-based casino operator MGM Resorts International and Japanese financial services firm Orix Corp. 

The national government could announce its preferred bidder in the autumn. Osaka is competing with the city of Nagasaki to get Japan’s first casino license.

Universal Entertainment, which is currently involved in an ongoing legal dispute with the company’s former chairman Kazuo Okada, divulged this week that it would sue the Japanese billionaire businessman in Hong Kong along with his “collaborators” over their primary involvement in the alleged violent takeover of Okada Manila on May 31. 

Okada & Co Breached Hong Kong Law

Okada Manila is currently operated by Tiger Resorts, Leisure and Entertainment Inc. (TRLEI). TRLEI’s parent company, Tiger Resort Asia Ltd, which is a wholly-owned subsidiary of Universal Entertainment, is registered in Hong Kong. The company owns 99.9% of TRLEI shares.

Universal Entertainment claimed that Okada and his associates had committed serious breaches of Hong Kong law arising from their illegal occupation of Okada Manila. 

Legal Drama To Continue

Universal Entertainment is currently seeking to overturn the Philippine Supreme Court decision in April that paved the way for Okada to return to his previous role as chairman of the company. 

Okada’s group has been manning the casino resort since May 31 and claimed they’re leading the business towards recovery after June’s figures showed the casino’s gross gaming revenue was up 4% from the same period in 2019, before the onset of the pandemic.

Universal Entertainment disputed that claim and accused Okada’s group of being deceitful and engaging in credit-grabbing.

Philippine casinos are now required to perform stringent checks on junket operators before entering into any deals or contracts with them as part of new guidance that aims to aid land-based casinos in determining the fitness and proprietary nature of junket operators and the key people associated with them. 

Guidelines Focus on Four Areas

Under the new guidance, casinos should assess the reputation, honesty, and integrity of the key individuals involved in junket operations, as well as their financial soundness, competence, and capability.

To determine a junket operator’s suitability, casinos should assess whether they’ve faced lawsuits or have been convicted for fraud, money laundering, terrorist financing, and other related crimes. Casinos must also ensure that the key persons involved in the running of the junket business don’t have any outstanding debt or have been the subject of bankruptcy proceedings. 

Casinos also have a duty to ensure that individuals holding key positions have received adequate training for the work that they do. 

New Guide Aims to Remove PH from Grey List

PAGCOR said the new guide was established to strengthen the country’s anti-money laundering (AML) and combatting the financing of terrorism (CFT) rules, which was highlighted when the French watchdog Financial Action Task Force (FATF) placed the Philippines on the “grey list” in June 2021.

Jurisdictions included in the list are deemed to be at risk of financial crimes and need extra monitoring.

Wynn Macau Ltd, the casino operator, which is majority owned by the US icon group, Wynn Resorts, has announced a change in presidency.

In a press release last week, the group said that industry executive, Linda Chen will be replacing the current Wynn Macau president, Ian Coughlan. 

Chen will step into the new role from March, 2023. 

Until the end of next year, Coughlan will serve as advisor to Wynn Macau, and sit on the Board of Directors.

As per Craig Billings, Chief executive of Wynn Resorts: “Ian’s pioneering leadership, which spans the vast majority of our incredibly successful time in Macau, has been impressive and his unrelenting commitment to brand excellence and establishing our deep-rooted culture is equally remarkable. I’m pleased that he has agreed to continue as an advisor to the Company and on our Board of Directors.” 

55-year-old Linda Chen is head of global marketing and strategic development of Wynn Resorts.

“Linda’s leadership throughout the many phases of our development in Macau has been important to our success. She will work with Ian to ensure a smooth transition, and I look forward to working closely with Linda and our talented management team in the years ahead,” said Billings.