- Three Arizona casinos had to close their doors after the state witnessed an increase in the number of coronavirus cases.
- Culinary Union is standing firm on its demand for stricter guidelines from the Nevada Gaming Control Board
- The daily burn out of each operator and an estimate to the period they could last under closure orders
- During the closure, some operators were at least five months away from running out of cash.
According to reports, three Arizona casinos had to close their doors after the state witnessed an increase in the number of coronavirus cases.
Industry expert, Howard Stutz says, “I think it’s a step back, we’re all worried about it.”
He added, “The Gila River properties opened, then all of a sudden they closed after a couple of weeks. We don’t want to see it regress. The governor has already said we’re not moving into Phase 3 until at least the end of the month.”
On the other hand, the Culinary Union is standing firm on its demand for stricter guidelines from the Nevada Gaming Control Board. “Changes made this week, didn’t go far enough,” Culinary Union.
So far Nevada Gaming Control Board made it mandatory for players to wear face masks at table games that do not have a physical barrier.
“We have more and more casinos opening. A lot more are going to open next week ahead of the Fourth of July holiday,” stated Stutz.
It is worth mentioning that casinos in Arizona are run by indigenous communities, while in Nevada, casinos are state-run.
Las Vegas casinos head above water
The American Gaming Association ordered the closure of all 465 commercial casinos across the US by Wednesday, 25 March 2020, leaving each state to determine the closure periods.
Before re-opening, the Macquarie also found out that some casino operators would fare better than others. The report revealed the daily burn out of each operator and an estimate to the period they could last under new closure orders
- Las Vegas-based Boyd Gaming Corp – $3.2 million daily – 9.4 months remaining
- MGM Resorts International – $14.4 million daily – 9 months remaining
- Penn National – $6.4 million daily – 5.2 months remaining
- Red Rock Resorts – $1.7 million daily – 13.8 months remaining
- Golden Entertainment – $1 million daily – 10.4 months remaining
Can Las Vegas witness another period of closures?
The gambling industry already received a big hit and the outcomes of another closure can turn out to be devastating.
According to a Macquarie Research report, during the closure, some operators were at least five months away from running out of cash.
Chad Beynon, Macquarie Securities gaming analyst, notes that the US gaming sector has been one of the hardest-hit sectors since the coronavirus pandemic began.
‘The casino shutdown domestically coupled with high debt is pushing investors to as, how long can these balance sheets last in this current environment?’ he said.