Station Casinos, one of the top casino companies in Nevada, has been hurting over the past few months. Casino revenue remains low around the United States and casinos are beginning to shut down in different states. According to new reports, four different Station Casinos properties are likely to be permanently closed soon.
It shows how difficult things currently are for casino operators. Today, we’re going to look at which casinos may soon close down. We’ll also give an update on some more major casino companies operating in Nevada.
Let’s get into it!
Downtown and Strip Casinos Are Up and Running Again
When Nevada Governor Steve Sisolak ordered the state’s casinos to shut down, the news spread like wildfire. Cities like Las Vegas rely almost entirely on this gaming and tourism revenue. Without casinos, everyone felt the city would be in trouble.
No one knew how long this casino shutdown would last for. As the weeks dragged on, the effects of these regulations got worse. Businesses began to close and residents across the state started demanding that Sisolak allow casinos to start operating again.
By May, the Nevada Gaming Board agreed to a set of safety measures introduced by casino companies. Casinos were finally given permission to reopen here on June 4th. We’re now in August, and almost all of the casinos in Downtown Las Vegas and on the Las Vegas Strip have officially reopened.
This doesn’t mean that things are back to normal. Tourism rates in cities like Las Vegas are still significantly lower than they were in early 2019. This drop in visitation rates is also leading to a major dip in casino revenue earnings.
In June, Nevada’s casinos earned just $566.8 million. That’s a 45.5% dip in gambling revenue when compared to June of 2019. Experts are torn on whether or not revenue in July will be higher.
Casino companies are stuck in a very difficult situation. Many are being forced to take drastic measures in order to stay afloat. This week, Station Casinos gave some insight into what it has planned over the next few months.
Frank Fertitta III Claims Four Station Casinos May Close Permanently
Station Casinos launched back in 1967. At that time, the company was focused on building and operating casinos for locals in the Las Vegas area. Today, Station Casinos owns more than 20 casinos and employs over 11,000 individuals.
Over the years, this casino company has grown considerably. Some felt it was slowly becoming one of Nevada’s next big up and coming gaming operators. Of course, the global pandemic has taken a major toll on the US casino industry.
Gambling revenue remains low around the country. Many casino companies are being forced to lay off thousands of their workers to cut down on costs. Station Casinos is hurting badly and now it appears the company is close to permanently shutting down some of its gaming venues.
Frank Fertitta III, CEO and chairman of the board of directors for Red Rock Resorts, the parent company of Station Casinos, spoke about the current situation to the media this week.
“We don’t know if or when we’re going to reopen any of the closed properties,” Fertitta said. “We think it’s too early to make that decision.”
Not all Station Casinos properties are bleeding revenue, though. New reports indicate 16 of the company’s Las Vegas gaming venues have actually seen their year-on-year revenue increase.
“So far, we’re pleased with the results we’ve had and the ability to move some of the play from our closed properties to our existing properties,” Fertitta added. “We’re going to continue to get clarity and to navigate the situation to make well-informed decisions. Whatever decisions we make will be made in the best interest of shareholder value.”
It seems likely that Station Casinos will shut down several of its properties for good. Some are now wondering whether or not the major operators on the Las Vegas Strip will be forced to take similar measures.
Will Any Las Vegas Strip Casinos Be Forced to Shut Down?
Casino companies across the nation are hurting right now. That includes the major players with property on the Las Vegas Strip. Over the past few months, revenue earnings at MGM Resorts International, Wynn Resorts, and Las Vegas Sands have dipped considerably.
The latter saw recently released its second-quarter revenue reports. Las Vegas Sands saw an incredible 97% dip in its earnings between April and June when compared to the same months in 2019. Company officials told the media that Las Vegas was “in a world of hurt right now.”
That doesn’t mean major casino-resorts are likely to close down. It would take a lengthy, sustained revenue dip for any Strip casinos to permanently shut down. Some, however, fear that construction projects in the city may be delayed.
There are several properties currently being constructed on the Las Vegas Strip right now. That includes Resorts World Las Vegas, set to be the most expensive casino-resort ever built in the city. Construction on this new venue is still taking place, yet there are concerns over how this property will fare if revenue does not bounce back.
We expect several Station Casinos properties to shut down soon. We’ll continue offering updates on this situation here over the next few months.
Are you surprised to hear Station Casinos’ plans? Let us know in the comments section below!