Big US casino operators could lose a lot of money.
Macau, which is China's gambling capital, is seeing its biggest surge yet.
China's government has a plan to try to curb cases.
The casino operators are not out of the woods.
China's gambling capital on the island of Macau has shut down operations for the first time in more than two years, which could cost US-based casino operators millions of dollars.
Macau, the world's largest gambling hub, has seen its most significant surge of COVID-19.
The Chinese region has grown into a major gambling destination as US-based casino operators have poured billions of dollars into Macau. The casino operators are having a hard time with China's virus-mitigation policies.
Wynn, MGM, and Las Vegas Sands derive hundreds of millions of dollars in revenue from their China businesses, but they saw Macau revenues decline in the first quarter. All three companies blamed the slump on travel restrictions in China.
The casinos in Macau will be closed for a week and those who leave home will be punished. The Chinese government's "zero COVID" strategy involves mass testing and sudden lock downs.
They couldn't immediately be reached for comment.
Business Insider has an article on it.
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