Casinos in Las Vegas are still shut down and tourism in the city is at an all-time low. Even the country’s top health experts cannot say when this situation will play out. Today, we’re going to discuss how much money different US casino operators are losing as a result of this pandemic.
The land-based gambling industry is being hit extremely hard right now. Major casino companies have a tough road ahead of them. Here’s what’s happening with this situation right now.
The Las Vegas Shutdown Continues
Our team has covered what’s been happening in Las Vegas for weeks. The city is dealing with an unprecedented situation. Never before have all casinos in Las Vegas been forced to close their doors to the public.
This is all due to the rapid spread of Covid-19, a new coronavirus that first emerged in China. In late January, the virus finally hit the United States. Today, more than 61,000 people have been infected in the US. New York is experiencing a massive surge of cases.
Nevada’s governor forced all casinos in the state to close last week. The mayor of Las Vegas pushed against these regulations. She argues that the city is already suffering greatly due to the huge number of closed businesses.
Governor Sisolak is not changing his stance, though. As a result, all US casino operators have officially shut down. The Las Vegas Strip, home to some of the biggest casino-resorts in the world, is now effectively closed down.
Many companies here are losing a huge amount of revenue due to these regulations. New reports have just been released that show the true impact the coronavirus is having on casino operators in the city.
US Casino Operators Face Bankruptcy Due to Covid-19
Nearly every single casino across the country is now shut down. It’s not much of a surprise to see. State governments realize that casinos are easy places for a virus to spread. As a result, casino companies across the nation are suffering.
This is especially true in Las Vegas. As we mentioned earlier, this city is home to many of the biggest and most profitable casino-resorts in the world. This week, a report was released by the Macquarie Research that indicated many US casino operators only have a few months before they go bankrupt.
Chad Beynon, a Macquarie Securities gaming analyst, commented on the situation to the media this week.
“U.S. gaming has been one of the hardest hit sectors in the consumer space since the beginning of the crisis,” Beynon said. “The casino shutdown domestically coupled with high debt loads is pushing investors to ask, how long can these balance sheets last in this current environment?”
According to the reports, Boyd Gaming is losing up to $3.2 million every single day. MGM Resorts International is losing $14.4 million per day. Penn National Gaming is seeing losses of $6.4 million every single day.
For some of these companies, this is disastrous. Unless things improve in the next few months, they are at risk of going under. Employees are already suffering. Some of the aforementioned companies only offer one or two weeks of pay while the situation unfolds.
How Long Will This Situation Play Out For?
This is the million-dollar question. Just about everyone has tried to predict how this pandemic will play out for. Most health experts feel it will drag on for months, perhaps until a vaccine is developed. Others feel herd immunity will begin to take place and ultimately kill off the virus.
The President seems determined to get things back on track by Easter. Almost no one expects this to be a reality.
It seems very likely that things will continue to get much worse before they get better. Infection rates are increasing in the US very quickly. Some believe that the country will soon become the epicenter of the pandemic.
This doesn’t mean it will last forever. Eventually, scientists will find an effective way to protect people from Covid-19. The government is investing billions of dollars to streamline this process.
Hopefully, US casino operators are able to withstand this shutdown. The companies in Las Vegas have already asked Congress for help. We’ll need to wait and see how the government is able to protect them.
Stay tuned for more Las Vegas casino news over the next few months!