Macao will close its casinos for two weeks over the coronavirus outbreak

Macao, one of the world’s top gambling hubs, is planning to close its casinos as the deadly coronavirus outbreak continues to surge.

The government of the semi-autonomous Chinese territory will suspend operations in gambling and other related industries for about two weeks, Macao Chief Executive Ho Iat Seng said during a press conference Tuesday.

Macao has 10 confirmed cases of the coronavirus, which has killed at least 427 people and infected more than 20,000, mainly in China.

Ho said that the decision was made after an expert review, as the ninth confirmed patient was discovered to have worked in the gambling industry.

MACAU, CHINA - JANUARY 28: People wearing face masks walk in front of the Grand Lisboa Hotel on January 28, 2020 in Macau, China. The number of cases of a deadly new coronavirus rose to over 4000 in mainland China Tuesday as health officials locked down the city of Wuhan last week in an effort to contain the spread of the pneumonia-like disease which medicals experts have confirmed can be passed from human to human. In an unprecedented move, Chinese authorities put travel restrictions on the city which is the epicentre of the virus and neighbouring municipalities affecting tens of millions of people. At least six people have reportedly contracted the virus in Macau. The number of those who have died from the virus in China climbed to over 100 on Tuesday and cases have been reported in other countries including the United States, Canada, Australia, France, Thailand, Japan, Taiwan and South Korea. (Photo by Anthony Kwan/Getty Images)

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Macao officials told CNN that the date the suspension will start hasn’t yet been decided. The city’s leader planned to meet with representatives from gambling companies on Tuesday.

Casino stocks dropped in Hong Kong following the announcement. Galaxy Entertainment and Sands China, both components of the Hang Seng Index (HSI), declined by 2%.

Shares in Wynn (WYNN) Macau (WYNMF) and MGM (MGM) China (MCHVF), which also trade in Hong Kong, fell 1.7% and 2.2%, respectively. In the United States, Wynn (WYNN) and MGM (MGM) tumbled 3% in premarket trading. Las Vegas Sands (LVS) fell 5%.

Gambling is the lifeblood of Macao, a vibrant southern Chinese city that depends on millions of visitors from mainland China. But the recent global health scare has threatened the business model at the heart of Macao’s economy.

Last year, the city received almost 40 million visitors. Now, streets and squares once teeming with tourists from mainland China are empty. Ambulances roam the city, operated by emergency workers dressed in hazardous materials suits.

According to the Macao government, January tourism figures plunged 87% compared to the previous year, even though the busiest holiday of the year — Lunar New Year — fell during that period.

— Laura He, Ivan Watson and Brad Olson contributed to this report.