Wynn Resorts Limited reportedly said rising tensions between the U.S. and China could hamper attempts to secure undisclosed new funds.
The Las Vegas-based company said in an official filing that the ongoing trade war between the two world superpowers has declared that 'controversial punitive or retaliatory measures are being imposed on businesses and individuals' and may hamper efforts to recover from the coronavirus-induced global economic downturn.
CDC Gaming reports that Wynn Resorts Limited is responsible for developing 1,000-room Wynn Macau and grander Wynn Palace co-tai through its majority shareholder Wynn Macau Limited. Sources explained that the two Macau facilities were temporarily shut down in early February and since then, coronavirus-related travel restrictions have caused the number of tourists in the former Portuguese enclave to fall close to record lows, challenging to energize businesses.
The deteriorating relationship between the U.S. and China could distort the global macroeconomic environment, prolonging the economic downturn caused by the coronavirus and eventually leading to a "potential global recession," it said. The Nevada company has also reportedly warned that a debate that began over trade policy has now expanded to "national security and national and regional politics" and even led administration President Donald Trump to ban the use of WeChat social media and messaging apps used by most of Macau's customers.
"At this time, we cannot confirm the scope of the ban and there is no guarantee that it will not adversely affect our ability to communicate with certain customers. Continued tensions between the U.S. and China could significantly weaken the stability of the global economy as a whole and especially the Chinese economy."
Macau's total gaming revenue in July plunged 97% to $89.6 million in June, then fell 94.5% year-over-year to $168 million, according to the CDC Gaming Report. The casino-friendly region reportedly experienced a 79.8% drop in such total revenue over the seven months from early January to about $4.4 billion, and many industry analysts do not expect a significant recovery to begin before early 2021.
"Our financial results have been and are expected to continue to be impacted by the Chinese economy.