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Clouds on horizon for US casinos amid brewing trade war

Las Vegas clouds US casino trade war “The Trump Administration should recognise the potential negative impact of further escalation on my Congressional District. “Every empty airline seat from Beijing to Las Vegas means thousands of dollars of lost economic benefit to Southern Nevada.” Events in South Korea last year may provide a further insight into the shape of things to come, if the dispute between the US and China continues to escalate. China restricted tourism to South Korea in March last year, imposing a ban on the sale of package tours, after the US deployed the THAAD missile defence system in the country. Although it should be noted that Beijing has never specifically linked the ban to the THAAD deployment. “Foreigners-only casinos fared far worse last year due to a decrease in the number of Chinese tourists,” said an unnamed source cited in a Yonhap News Agency report this March. “They are expected to have tough times this year unless China completely lifts its ban.” The drop in the Chinese visitors numbers took a toll on Korean casino operators financial results. Full-year revenue for Paradise Co. dropped 8.6 percent to KRW551.8bn ($493.5m) in 2017, while state-run Grand Korea Leisure Co. saw its full-year revenue fall 8.6 percent to KRW513bn ($458.8m).

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