Casinos Must Ready for Omicron COVID-19 Strain
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Omicron variant of COVID-19 has caused concern across the globe. Casinos must be ready for the potential decline in stock prices.
In 2020, US casino gaming revenue dropped by more than 31% for the full year. The Omicron variant of coronavirus has been detected in South Africa. WHO is trying to gather evidence on whether it is more transmissible or causes more severe disease. Europe has reintroduced strict measures. OMICROON could have a significant impact on the casino industry.
WHO declared Omicron a "variant of concern" on Friday. Investors fear the impact of this news on casino stocks. Wynn Resorts fell 6% on that day, while Las Vegas Sands took a 5%. Melco Resort stock took the steepest hit, dropping 10%. Caesars Entertainment took 3% hit on the same day. Boyd Gaming fell more than 1%, Century Casinos declined by 8%, Rush Street Interactive fell 5%, and Penn National Gaming dropped less than one per cent. Bally's Corporation saw a marginal increase.
It's too early to tell what impact the Omicron variant might have on the global gaming sector. Most casinos are in a better position than when the first wave of coronavirus rolled around in March 2020. However, Macau could see a steep hit from the variant due to China's zero-tolerance policy towards infections.
