The newly identified coronavirus SARS-CoV-2 was first identified and widely spread within China but has since made a global reach. According to the Johns Hopkins virus dashboard, 87,442 cases of the virus worldwide have been recognized.
With the virus spreading rapidly, Las Vegas casino operators have been feeling the sting in the stock market.
Amid the global outbreak concerns, stock prices have been on a steep decline. Shares at Las Vegas mega-properties have been affected.
Within the same time frame, the Dow Jones Industrial Average also fell 12 percent.
On Jan. 30, the World Health Organization officially classified the coronavirus as a public health emergency on the international level. Health and Human Services Secretary, Alex M. Azar II, declared the outbreak a public health emergency for the United States, which would enable support for the healthcare community’s response.
“While this virus poses a serious public health threat, the risk to the American public remains low at this time, and we are working to keep this risk low,” Azar said. “We are committed to protecting the health and safety of all Americans, and this public health emergency declaration is the latest in the series of steps the Trump Administration has taken to protect our country.”
How Deep Will the Coronavirus Crisis Impact Gaming Circles?
According to Macquarie analyst, Chad Beynon, it’s difficult to gauge the depth of the potential impact because the depth of the crisis is still developing.
“The market, in our view, has moved from underappreciating the risk to potentially over-penalizing the stocks,” Beynon said.
As the situation continues to develop, casino operators are saying they will continue to monitor it closely, and have warned investors of the potentially adverse effect it could have on gaming operations.
In an annual report Wynn Resorts filed on Friday, they gave this statement regarding the outbreak that other casino operators are echoing:
The coronavirus outbreak “has had and will have an adverse effect on our results of operations.”
Wynn Resorts Shutdown in Macau
Of the Las Vegas casino operators, Wynn Resorts, who has three properties in Macau, China, has been hit the worst so far. The outbreak forced Chinese Officials to shut down Wynn Macau, Encore at Wynn Macau, and Wynn Palace for 15 days to reduce the risk of infection.
The shutdown caused the company to lose nearly $2.6 million in revenue a day, with the majority of the revenue loss generated from payroll costs.
The casinos were given the green light to reopen last week.
It’s unclear how far-reaching the outbreak will be and whether there’s an end date in near sight. Until then, Las Vegas casino operators will have to keep a close eye on developments alongside the rest of the world.