There is no doubt that 2020 has been a horrific year for most businesses, and this includes some aspects of the online industry, although it was proven once again that the online industry is very resilient to crisis and other destabilisation factors which brought down many other industries. But no one is immune to the rising tensions between two most powerful nations in the world. 

Another problem that has been causing concern for United States live casino operators in Macau is the ongoing battle between the US and China over trade and security policies. Macau is China-controlled, and many operators and industry officials were concerned that the friction between the two countries could deal yet another devastating blow to U.S. casino operators in Macau. 

The good news for these casino operators is that analysts and experts have said there should be no impact on the casinos. This will undoubtedly come as a huge relief for casino officials given the problems already experienced this year. 

Monitoring the Situation

According to reports, analysts with the brokerage firm, Sanford Bernstein, have been keeping a close eye on the situation. There has been a lot of turmoil between the two countries, and the battle they have been embroiled in has caused a huge amount of friction. With casino industry officials becoming increasingly concerned about the impact on their Macau operations, analysts decided to monitor the situation more closely.

A number of concerns had been raised by operators, and one of the key ones was over licensing in Macau. All six of the licenses that are active in the area are due to expire in 2022, and there is no guarantee that operators will automatically receive new licenses. A new tender process must be held in accordance with legal requirements in Macau, but there is little chance of existing operators losing their license.

The rift between the United States and China could change that situation, however. China could effectively try to get back at the United States by taking more control in Macau and demanding changes to the gaming laws in the area. These gaming laws are due to be amended next year, and understandably many operators were extremely worried about getting caught in the crossfire between America and China. 


Fortunately, officials from the brokerage firm are confident that this will not happen, which means that casino operators can finally breathe a sigh of relief. Analysts also believe that all of the existing operators will receive new concessions and that there will be no new entrants into the market. This came as additional good news for the U.S. operators that already have casinos in Macau.

At the present, the experts are confident that existing U.S. operators in Macau have little to worry about in this respect, unless the situation between US and China goes for the worse in future.

Still Some Concerns for Operators

While the news from Sanford Bernstein has provided some relief for U.S. Casino operators in the area, a few areas of concern have been highlighted by analysts. There could be changes to the gaming programme in Macau that could have an economic impact. This includes a change to gross gaming revenue, taxes on gaming profits, and taxes on dividends among other things. There are also concerns that any changes put into place could involve the mandating of upfront fees.


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