US-Based Macau Operators Not in Crosshairs, Says Chief Executive

Posted on: May 14, 2025, 12:15h. 

Last updated on: May 14, 2025, 12:55h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Macau Chief Executive Sam says US-based concessionaires won’t be targets of retaliation
  • Comments come as the US and China make progress on trade

The three US-based Macau concessionaires won’t be targets of retaliation should US/China trade tensions flare up, according to the chief executive of the Special Administrative Region (SAR).

Macau chief executive, Sam Hou Fai, election, Ho Iat Seng
Macau Chief Executive Sam Hou Fai. He said US-based casino operators won’t be targeted in US/China trade tensions. (Image: Macao News)

In comments made during a Tuesday press conference following the visit of Xia Balong, the director of the Hong Kong and Macau Affairs Office, Sam Hou Fai said the trio of American companies operating Macau casino hotels won’t be points of emphasis should US/China geopolitical tensions escalate.

Foreign investments are highly welcomed in the Macau SAR,” he said. “This is also one of the goals outlined in my recent policy address. According to the law, and as long as they comply with local regulations, all foreign investments will be protected and supported.”

His comments jibe with those of some sell-side analysts who have recently opined that the US/China trade controversy, even if it ramps up anew, is unlikely to result in “revenge tariffs” against units of Las Vegas Sands (NYSE: LVS), MGM Resorts International (NYSE: MGM), and Wynn Resorts (NASDAQ: WYNN).

Some Relief for US-Based Macau Operators

Sam’s comments arrived a day after gaming equities, including the three aforementioned names, rallied on news that the world’s two largest economies made some progress in trade negotiations.

Last weekend, US and Chinese officials met in Switzerland and agreed to slash tariffs for 90 days on exports to each other while establishing a framework for further talks. The two nations are focused on “the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship,” according to a joint statement.

The trade deal, coupled with Sam’s subsequent remarks, marked relief for Las Vegas Sands, MGM, and Wynn. In particular, Sands and Wynn are two of the most China-dependent US companies outside of the technology sector in terms of percentages of earnings and revenue generated from that country.

MGM China, Sands China, and Wynn Macau combine to run nine integrated resorts in the SAR. Five of those venues are operated by Sands China, making that company the largest in Macau.

Macau Appears Committed to US Operators

Sam’s comments hint at broader Macau commitment to the US-based concessionaires. All six operators had their licenses renewed effective Jan. 1, 2023, for 10-year terms. At the height of the recent US/China trade tensions, there was speculation that the Chinese government could interfere and push for punishment of US-based casino operators.

That could have been in the form of not renewing licenses or forced premature exits from the SAR, but those outcomes are unappealing to Beijing and Macau because there’s a limited number of gaming companies — arguably less than three — that could adequately fill the voids that would be created by banishing MGM, Sands, and Wynn from Macau.

Those worst-case scenarios now appear unlikely and it’s possible shares of the US-based Macau operators could be in for more near-term upside if the US and China make further trade progress.