The coronavirus pandemic is the equivalent of a nuclear bomb for Las Vegas industry
Following the official mandate by Nevada Governor Steve Sisolak to cease all gaming and resort operations, the casinos from Las Vegas are temporarily closed.
Nevada’s COVID-19 related deaths reached 293 and 5,766 positive cases on Thursday, May 7. Steve Sisolak in the same day announced he was moving the date for the state’s Phase 1 reopening from May 16. Steve Sisolak will permit dine-in restaurants and a limited number of other businesses to reopen during his first phase of reopening Nevada businesses. The casinos will not be reopened in Phase 1.
There may be no more vivid illustration of the economic havoc being wreaked by the coronavirus than the rapid shutdown of the casinos from Las Vegas. What was a booming tourist destination a few months ago is now wilderness. For Las Vegas casino industry the COVID-19 coronavirus is the equivalent of a nuclear bomb.
After Las Vegas Mayor Carolyn Goodman called at the end of April for the swift reopening of hotels and casinos, many who earn their livelihoods in such establishments said they were afraid to return unless strict safety measures were introduced for themselves and guests. Although Goodman said the businesses should reopen, she provided no guidelines on how they should handle social distancing and other safety measures to prevent the spread of the coronavirus.
“I want us open in the city of Las Vegas so our people can go back to work,” Goodman said in a CNN interview. She was asked how that could be accomplished while prioritizing employees’ safety by implementing social distancing.
“That’s up to them to figure out. I don’t own a casino,” she said.
Casino capacity would be cut in half, gamblers would keep their distance at slot and table games and surfaces would be cleaned frequently when casinos reopen under new guidelines approved Thursday, May 7, by the Nevada Gaming Commission.
The rules would guide the state’s more than 400 casino properties. Commissioners took more than 40 minutes of public comment before agreeing that guidelines issued by the state Gaming Control Board would adequately address providing a safe and healthy environment to reopen casinos closed since March 18.
Halved occupancy limits assigned to each gaming area of the property would be determined by local building and fire codes. Table game limits would include three players per blackjack table, six players per craps table, four players per roulette table, and four players per poker table.
“These are unprecedented times that require unprecedented measures,” Gaming Control Board Chairwoman Sandra Morgan said. “We are confident that these policies are sound, not only for our licensees, but for our employees and guests.”
The Gaming Control Board will continue to determine how and when Nevada’s casinos reopen, and every casino-resort will be required to submit a plan for approval at least seven days prior to its requested opening date.
Wynn Resorts Ltd.’s CEO said it’s likely the company’s two Las Vegas properties could open later this month. With the first phase of the state’s reopening plan set to begin next week, CEO Matt Maddox said he believes Wynn Las Vegas and Encore could reopen as part of phase two, assuming the environment is safe for customers and employees.
Like many casino companies, regional gaming giant Penn National Gaming Inc. was on a roll in January and February. Then, the bottom fell out. It reported a 13 percent decline in first-quarter revenue.
The turnover of Las Vegas Sands in the first quarter of the year has suffered greatly due to the Covid-19 crisis that affected both its business in Macao and in the United States. At the results level, a year-on-year drop of 51% is reported. Las Vegas Sands paid on March 26 what was its last dividend since the company has announced that it suspends the payment of these incentives to its shareholders until further notice.
