Out Of Luck: Hong Kong Casino Moguls See Fortunes Fall As Tourism Stalls

February 24, 2022 Hong Kong Earnings & Filings Industry Updates

Hong Kong’s casino moguls saw a turn in fortunes as Macau pulled back from making drastic changes to laws controlling the world’s largest gambling hub by revenue, ending years of uncertainty in the sector. Locally listed casino stocks surged in January after the government unveiled draft legislation that maintained the current number of casino licenses ahead of renewal deadlines in June.

Macau also dropped proposals to increase the gaming tax, restrict dividends and appoint casino monitors from the China-backed measures aimed at diversifying the city’s economy beyond casinos. “The government’s stance on some contentious topics has become far less onerous, if not surprisingly accommodative,” JPMorgan analysts wrote in a note following the announcement.

Still, the rebound is nowhere close to undoing the market rout that began when the pandemic struck in early 2020, causing visitor numbers to plunge. Lui Che Woo, chairman of Galaxy Entertainment Group, and his family saw their net worth fall 28% to $12.8 billion. MGM China co-chair Pansy Ho—among the most prominent of late Macau gaming magnate Stanley Ho’s 17 children from four wives—saw her wealth drop 17% to $3.4 billion.