- Circus Circus is planning to sue its insurance company over an unpaid claim of $1.6 million.
- Circus Circus claims that is had to endure grave losses during the closure period.
- The casino’s attorney claims that the insurance company failed to honour a contract for an all risks policy.
- Governor Sisolak’s announcement of mandatory face mask wearing on casino floors has resulted in a lower turn-out.
- Casinos will not have to close again as long as safety measures are being applied and upgraded to protect guests and employees.
Circus Circus is planning to sue its insurance company over an unpaid claim. The casino is suing AIG Speciality Insurance Company for refusing to cover losses endured by Circus Circus during the pandemic.
Circus Circus had to shut its doors on March 18 following Governor Sisolak’s closure order.
The company said in a statement, “AIG lies on sleight-of-hand, distortions of facts and contortions of law to escape from Circus Circus’s covered claim.”
They added, “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.”
The casino claims that is had to endure grave losses during the closure period. Furthermore, the claim that their employees have been infected by people who visited the casino.
According to Circus Circus, more than 1,600 sick days were recorded between the 1st of January to the 18th of March.
Circus Circus sues AIG Speciality Insurance Company
The Lawsuit states, “On March 20, 2020, Circus Circus notified AIG that it had experienced, and was continuing to experience, a covered loss as a consequence of the physical loss and damage caused by COIVD-19 and the resulting Stay at Home Orders and other civil authority orders.”
Circus Circus filed the claim on July 2nd in federal court and according to the claim they paid a $1.6 million premium for the pricy.
The casino’s attorney said that “AIG failed to honour a contract for an all risks policy. This policy, according to the lawsuit covers the 3,800-room property against all risks of direct physical loss or damage.”
It is worth mentioning that the policy covers up to $500 millions for physical loss or damage to the property. It also covers up to $9,67,74,307 for loss of business income.
Las Vegas Casino Industry for the next six months
It is tough to predict how the coming period will unfold. This could arguably be the hardest moment for the gambling industry throughout history.
Most casinos are trying to earn enough to sustain operations, which is proving hard given that the rate of tourism dropped drastically.
Moreover, Governor Sisolak’s announcement of mandatory face mask wearing on casino floors resulted in a lower turn-out of guests.
Given the tough financial situation, casinos will most likely not have to close again as long as safety measures are being applied and upgraded to protect guests and employees, casinos will be allowed to stay open.