Las Vegas is home to some of the best casino-resorts in the world. Some consider Circus Circus to be one of the least-impressive venues in the city. This week, news broke that Circus Circus plans to sue its insurance company due to an unpaid claim.
As many are aware, Las Vegas casinos have taken a major hit due to the global pandemic. Many are now in desperate need of support in order to remain functional. Today, we’re going to look at the lawsuit that the owners of Circus Circus have planned.
Let’s get into it!
Nearly All Las Vegas Strip Casinos Have Reopened
At the start of this year, the idea of shutting down the Las Vegas Strip was inconceivable. This is one of the largest tourist destinations in the country, drawing in millions of visitors each year to take part in the gambling and entertainment. By March, the US began entering into lockdown and all of the casinos in Nevada were forced to close down.
Governor Sisolak was very hesitant to get the state’s casino industry back to normal. Las Vegas Mayor Carolyn Goodman, however, almost immediately begin demanding that casinos be allowed to reopen. It wasn’t until June 4th that the state’s gaming venues were allowed to start accepting guests again.
Initially, only a few casinos in Las Vegas reopened. As the weeks went on, more of the state’s major gambling venues opened back up. Today, almost all of the casinos on the Las Vegas Strip are operating again.
That doesn’t mean things are completely back to normal here. The casinos in Las Vegas look much different than they did prior to March. Slots are separated, plexiglass barriers separate table game players, and masks are now officially required when on the casino floor.
It’s a very unusual time for what is considered the entertainment capital of the United States. The amount of revenue that casinos here are earning is considerably lower than it was pre-pandemic. One major casino in this city is now filing a lawsuit, alleging it should be paid for the damage caused by the coronavirus spreading around the world.
Circus Circus Plans to File Lawsuit Against AIG Specialty Insurance Company
Every single casino in Las Vegas has been affected by the events unfolding around the world. Some are being hit harder than others. For the venues that were already struggling, this situation has become extremely difficult.
That can be applied to Circus Circus. This property is now considered one of the worst hotel-casinos on the Las Vegas Strip. It was recently purchased by Phil Ruffin, who felt he could turn things around here.
This week, officials within Circus Circus announced they plan on suing AIG Specialty Insurance Company. Casino officials claim the insurance company is refusing to cover losses that Circus Circus has experienced during the pandemic. The company released a statement that claims the “All-Risk” policy AIG offers does not live up to its word.
“AIG relies on sleight-of-hand, distortions of fact and contortions of law to escape from Circus Circus’s covered claim,” Circus Circus lawyers claimed. “But no illusion or death-defying feat can alter the plain language of AIG’s policy and the broad all risks coverage that it provides.”
Interestingly, Circus Circus claims that it suffered major losses even before shutting down. The casino claims people infected with Covid-19 had already visited this property and spread the virus to employees. More than 1,600 sick days were recorded between January 1st and March 18th, Circus Circus claims.
We’ll need to wait and see how AIG Insurance responds to this lawsuit.
What to Expect in Las Vegas Over the Next Six Months
Not even the best gambling analysts in the country can accurately say how the US casino industry will look by the end of the year. This is the toughest spot this industry has ever been in. As of now, the casinos in this country are simply trying to earn enough money to stay above water.
Tourism is still extremely slow in Las Vegas. Rates of visitors dropped even further after Governor Sisolak’s announcement that masks are now required on the casino floor. As rates of Covid-19 increase around the country, fewer people are willing to travel.
It seems highly unlikely that the casinos in Las Vegas will be forced to close down again. These companies are doing everything they can to make things safe for employees and guests. There are still complaints that workers inside casinos are still being put in danger.
Circus Circus plans to sue its insurance company. The Nevada Culinary Union is planning a lawsuit of its own against several major casinos on the Strip. This union represents workers inside casinos, many of whom claim things are not safe enough.
Casinos will remain open here. As time goes on, tourism rates are likely to increase. It could be years before the casinos in this city return to the way they were at the start of 2020.
Are you surprised to hear Circus Circus plans to sue its insurance company? Do you think this casino will win the lawsuit? Let us know in the comments section below!