Las Vegas gaming companies sort out typhoon damage in Macau

Updated August 23, 2017 - 10:09 pm

Las Vegas-based casino operators are continuing to assess the damage from what’s being called the worst typhoon in 20 years in Macau.

Hato, a Signal 10 typhoon — the highest wind level storm in the Asian typhoon scale, with winds exceeding 100 mph — slammed head on into the Chinese gambling enclave with three American casino company operators at noon Wednesday.

At least nine people were killed in southern China, including five in Macau, according to Macau’s Government Information Bureau. It said 153 were injured in the enclave.

In Hong Kong, more than 450 flights were canceled, financial markets suspended and schools closed as Hato bore down, the first category 10 storm to hit the city since 2012.

“I’ve never seen one like this,” Garrett Quigley, a longtime resident of Lantau island to the west of the city, said of the storm.

“Cars are half-submerged and roads are impassable with flooding and huge trees down. It’s crazy.”

Many skyscrapers in the usually teeming streets of Hong Kong were empty and dark as office workers stayed at home.

In residential districts such as Heng Fa Chuen on densely populated Hong Kong island, waves smashed against the sides of oceanfront buildings and surged over a promenade, sweeping away walls and benches and swamping vehicles parked nearby.

Construction cranes swayed at the tops of skyscrapers, windows imploded and nearly 200 trees were uprooted, while some people used canoes to venture out into flooded streets.

Storm downgraded

Authorities downgraded the storm to a category three by late afternoon with government services, the courts, financial markets and companies set to resume normal business on Thursday.

It was believed to be the first time since Portugal’s transfer of Macau to the Chinese government that a Signal 10 typhoon warning was imposed.

“Our people on the ground in Macau said this was the worst typhoon they had seen in 20 years,” said Las Vegas Sands spokesman Ron Reese.

He said power was out on the Cotai Strip for a couple of hours, but has since been restored, although water systems have been impacted.

High winds launched debris through a glass window panel above a Starbucks coffee shop at Sands Cotai Central, but there were no injuries to 40 guests inside at the time.

Michael Weaver, a spokesman for Wynn Resorts in Las Vegas, said Wynn Macau on the enclave’s peninsula and Wynn Palace on Cotai sustained minor damage, which the company is continuing to assess. Weaver said both resorts are open and operating.

Union Gaming analyst Grant Govertsen said there could be long-term damage to ferry transportation between Hong Kong and Macau.

“Earlier in the morning, all ferry services were suspended and remained suspended as of early evening,” Govertsen said in a report to investors. “In fact, damage was done to both ferry terminals in Macau, which could delay the resumption of ferry service even longer.”

Ferry terminals operate on the Macau peninsula, closest to MGM Macau, Sands Macao, Wynn Macau and its sister Encore property. A second terminal on Taipa Island is nearest to Wynn Palace, Venetian Macao, Parisian Macao, Sands Cotai Central and the construction site of MGM Cotai.

Border crossings closed

Govertsen said border crossings were closed during the worst of the weather and flights out of local and regional airports were canceled.

“The typhoon resulted in significant damage across all parts of Macau and most outdoor spaces in Macau, casinos or otherwise, will require extensive cleanup over the coming days, while we would expect many roads to be closed as trees and debris are removed.”

Govertsen said various media outlets reported some casinos closed, but several operating with backup generators for power. Photos circulated of flooded casino floors at some locally owned or other foreign-owned properties. On some city streets, only the tops of some cars could be seen in the floodwater.

The Gaming Inspection and Coordination Bureau of Macau issued a statement urging casinos that are in parts of the city affected by the power outage to cease gaming operations in order to ensure the safety of customers and staff.

Govertsen said what had been shaping up as a good month for gross gaming revenue — there were two weekends of performances at the Venetian Macao by Hong Kong pop star Jacky Cheung — will likely be affected by the storm.

“Following today’s typhoon, we would expect the gross gaming revenue growth rate to take a couple hundred basis-point hit, which could easily become notably worse should power supply issues remain overnight and into the next day,” Govertsen’s report said.

Govertsen predicted the storm’s repercussions could ultimately hurt stock prices.

Wynn Resorts Ltd. shares were down $1.40, just over 1 percent, to $134.75 in Wednesday trading. After hours, the price dipped another cent in light trading.

Las Vegas Sands Corp. fell 68 cents, 1.1 percent to $59.89 on light volume with no change after hours.

MGM’s stock price closed down 28 cents, 0.9 percent, to $31.32 a share. In after-hours trading, the price rallied by 8 cents, 0.3 percent, to $31.40, on light trading.

The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.

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

ad-high_impact_4
Business
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like