MGM executive speculates on Trump casino impact

In an interview with the Wall Street Journal on Tuesday, MGM Resorts chief executive speculated that U.S. president-elect Donald Trump’s rhetoric against China might hurt casino interests in East Asia, specifically in Macau.

MGM Resorts, Wynn Resorts and Las Vegas Sands all have Macau-based subsidiaries with significant assets in Macau, that could come under pressure if relations between China and the U.S. sour.

“There’s no doubt that China and America disagree on many, many topics but there’s been a degree of respect [in the past],” said Murren, also chair of the main casino industry trade association, the American Gaming Association, hinting that that might change with Trump in the White House.

On the other hand, some analysts disagree. They are predicting that the net impact of a Trump presidency will be neutral or may even spur a boost in tourism to Macau from the mainland Chinese market.

Union Gaming analyst John Decree told The Street that “the relationship between the gaming industry and Macau is pretty insulated from China’s broader market, so even if there are escalating tensions, the casinos in the region probably won’t be affected.”

However, if China yields to Trump’s electoral demands that the country stops artificially devaluing the yuan, Macau could see an increase in the number of tourists from mainland China as they find themselves with a relative increase in purchasing power in the territory. DB