U.S. Macau Concessionaires Not Expected to Face Significant Threat of Retaliatory Tariffs
Posted on: April 22, 2025, 03:05h.Last updated on: April 22, 2025, 03:05h.
Todd Shriber @etfgodfatherFinancial Gaming Business Mergers and Acquisitions Tariff Tussle: Why US-Based Macau Operators Escape Retaliatory Tariffs
Stepping into the maelstrom of another US-China trade battle, it's natural to wonder whether the three US-based Macau casino operators will face retaliatory tariffs directly. But fear not, BUtters – the chances are slim!
According to CBRE Equity Research analysts John DeCree and Max Marsh, this trade ruckus isn't one for the worry bin just yet. You see, the US-based trio—Las Vegas Sands (NYSE: LVS), MGM Resorts International (NYSE: MGM), and Wynn Resorts (NASDAQ: WYNN)—is key to the Macau ecosystem. So slapping 'em with hefty tariffs could destabilize Macau's economy, making such a move unlikely.
MGM China, Sands China, and Wynn Macau own and run nine integrated resorts in this special administrative region (SAR). Sands China, the biggest fish here, operates five of these casinos.
Testy Start to '25 for US Macau Casino Stocks
As the year roared in, investors were already griping about this Macau bunch.节气不六某些机构和投资者认为这一群人已经被Angry Birds-ing， ears were ringing, and wallets were empty. Yet, despite rock-bottom prices, the group hasn't been able to rally.
With figures like these, it's understandable that the troika is taking a hit. The average year-to-date decline for these three titans, however, is approximately 19.30%.Wynn is the frontrunner with a 2025 loss of just 10.64%, while Sands trails with a devastating 33.30% mauling since 2025's opening day.
Don't go aww—the market's response to the whiff of another US-China showdown on the horizon is as sensible as a lizard's multi-chambered stomach. Especially for Sands and Wynn, these two mega-digsive beasts with vast China tentacles.
But light, our friends—there's a glint of optimism on the horizon. Recent data suggests bettors aren't staying away from casinos run by the US gang, and there's no movement to avoid them, either.
Ace Up Their Sleeve: The Casino Giants' Ace
Trump's disdain for China's trade tricks is well-documented, and his current rhetoric channels his first-term anger. However, the US-based casino operars are seasoned vets for this drama.
Investors are on edge, but it's a sequel they've seen before. Plus, MGM, Sands, and Wynn have got a few tricks up their sleeves: "Macau's integrated resorts are the bread and butter of the region's economy, contributing over 80 percent of government tax revenue [and] U.S.-based operators alone employ 14 percent of the workforce," say the CBRE analysts.
In addition, it doesn't make practical sense to consider a scenario where the US-based operators are banished from Macau. The probable pool of substitutes is arguedly smaller than three, implying that the Chinese government and gaming regulators in Macau wouldn't welcome a disaster scenario.
- Despite the ongoing US-China trade tussle, it's unlikely that US-based Macau operators, such as Las Vegas Sands, MGM Resorts International, and Wynn Resorts, will be slapped with retaliatory tariffs due to their significant role in the Macau economy.
- Sands China, the largest operator out of the three US-based companies, runs five casinos in Macau.
- The US-China trade ruckus isn't a major concern for investors at the moment, as the US-based trio plays a crucial part in the Macau ecosystem.
- The average year-to-date decline for the three casino giants, including Las Vegas Sands, MGM Resorts International, and Wynn Resorts, is approximately 19.30%.
- Investors might be steering clear of US-based casino stocks due to the US-China trade frictions, but recent data suggests that bettors are still visiting casinos operated by this trio and there's no significant move to avoid them.
- The US-based casino operators, with their extensive China connections, have various strategies up their sleeves, such as emphasizing the significant economic contributions made by their integrated resorts in Macau.
- In the context of US-China trade disagreements, the US-based casino operators are experienced veterans, having navigated such conflicts in the past.
- Considering the limited potential alternatives, the Chinese government and gaming regulators in Macau would resist a situation where US-based operators are banished from the region due to the potential negative impact on the local economy and workforce.
- The Asia Pacific gaming sector, encompassing businesses, finance, entertainment, and general news, has remained closely watchful of developments in the US-China trade relationship and its potential impact on Macau casino operators.
- In the landscape of personal finance, education and self-development, and technology, investors should pay close attention to the financial outlook of US-based casino operators like Las Vegas Sands, MGM Resorts International, and Wynn Resorts, as well as the ongoing US-China trade situation, to make informed decisions for their lifestyle and investment portfolios.
