Sands executive: Coronavirus could keep Macao casinos closed longer than 15 days

The 35,000 employees of Las Vegas Sands’ six casinos in Macao are staying home following the closures ordered this week by the chief executive of the special administrative region in response to the spread of the coronavirus.

“It’s a scary time for all of us,” Sands Chief Operating Officer Rob Goldstein told members of the state Gaming Control Board on Wednesday.

Goldstein was before the board in an unrelated suitability hearing, but he gave members an update of the situation in Macao during his appearance.

Late Wednesday, medical experts at Johns Hopkins University in Baltimore reported 564 deaths from the virus and 27,623 confirmed cases, with most of them centered around Wuhan, in the Hubei district of central mainland China. There have been 10 confirmed cases in Macao and 12 in the United States.

Goldstein said that while Macao Chief Executive Ho Iat-seng on Tuesday ordered casinos closed for 15 days, the shutdown could last longer.

“It could be two weeks, it could be two months,” Goldstein said. “He has made it clear that he will not be able to make a decision until he gets further understanding of the virus and its severity in Asia.”

Ho has been supportive of getting properties reopened as quickly as possible.

‘Positive feedback’

“So far, we’ve had very positive feedback,” Goldstein said. “(He’s) pro-business and we’re hoping under his direction we can get the borders open sometime in the first quarter, but there’s no way to know. Look at the SARS (severe acute respiratory syndrome) event 15-16 years ago. … These things are unpredictable.”

Goldstein said he was in Beijing the day the first case of the coronavirus was discovered.

“The people made it sound like it was nothing to worry about,” he said. “I thought we had a non-event, but that non-event has morphed into something serious and hopefully the remedy will come soon.”

Goldstein said Singapore, home of another Sands resort, has closed its borders to Chinese nationals. Goldstein said he would not be able to travel to Singapore if he wanted to because his visit to China was within a time frame in which he would not be cleared for entry.

But Goldstein also is optimistic about an unconfirmed report he had heard earlier Wednesday that medical experts have discovered a breakthrough treatment for the disease.

The decision was reached to close the casinos because large groups often congregate there. In addition, multiple people touch or handle slot machines, playing cards and casino chips.

“The thought process there is that when large groups of people congregate is where you need to be careful,” he said. “So their thinking is that people in hotels are in their rooms or maybe a small group in a hotel lobby.”

Even though hotels are allowed to stay open, Goldstein said Sands properties with about 13,000 rooms are about 5 percent to 10 percent filled. A skeleton crew is manning the resorts.

The company’s surrounding 100 restaurants are deserted, the 2 million square feet of retail mall space is eerily quiet with traffic slowed to a trickle and the company has canceled all entertainment because there’s no demand to fill showrooms, he said.

Bridge still open

Goldstein said passenger ferries between Hong Kong and Macao aren’t running, but the new Hong Kong-Zhuhai-Macau Bridge is open. However, a motorist has to be commercially licensed to use the bridge.

“Our goal is to support the government,” Goldstein said. “They’ve been very supportive of us and they’re eager to open as well because the tax revenue has stopped and Macao depends on gambling. The special administrative region really depends on gambling revenue and the tax revenue, so it’s quite painful for everybody.”

The two other Las Vegas-based companies are taking the same tack as Sands. On Tuesday, they issued statements that they, too, are closing their Macao properties and following the government’s guidance.

“We believe that our goals and the goals of the Macao government during this challenging period are fully aligned,” Wynn Resorts Ltd. spokesman Michael Weaver said in an email.

“We will continue to work closely with the Macao government as the situation progresses,” added MGM Resorts International spokeswoman Debra DeShong in an email.

The local operators are all wanting quick resolution because all of them are dependent on Macao revenue for earnings. Sands and Wynn generate more than half their revenue from Macao holdings. MGM is less exposed because it is more geographically diversified.

“I’m just hopeful this morning’s news report has validity, that there’s a serum, a potential cure,” Goldstein said. “We’re all praying for that, both for the health and for the business side, so our employees can go back to work.”

The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson. Las Vegas Sands operates six properties in Macao and one in Singapore.

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