Las Vegas casinos were expected to have only five months to stay afloat in an outbreak of the corona virus
Las Vegas casino owners may only have five months to float, as they burn $ 14.4 million a day after orders to close operations for a month.
On Tuesday March 17, Nevada Governor Steve Sisolak ordered a state-wide shutdown of all non-essential businesses for 30 days, including casinos, bars and restaurants, to prevent the spread of COVID-19, making Sin City a ghost town became.
Casinos now face the dilemma of keeping employees working while struggling with no income.
According to Macquarie Research, some operators only have five months before they run out of money.
MGM Resorts International, which operates 13 luxury casinos in Las Vegas and dozens of others across the country, burns $ 14.4 million daily with nine months before the money runs out, the report said.
Las Vegas casinos may only have months to stay afloat as they burn millions of dollars today and struggle with no income due to ordered shutdowns. The tourist hot spot on the Las Vegas Strip was eerily deserted on Wednesday
MGM Resorts International, which operates 13 luxury casinos in Las Vegas and dozens of others across the country, burns $ 14.4 million daily with nine months before the money runs out, the report said. The Park MGM hotel in the picture avoids Wednesday without guests
Closed for business: a boarded-up entrance to a business on the Las Vegas Strip, pictured above on Wednesday
This chart shows the cash burn projection of US casino operators in Las Vegas. Red Rock Resorts burn $ 1.7 million daily and have enough money to last 13.8 months, surpassing its competitors. Meanwhile, Penn National burns $ 6.4 million daily by 5.2 months before exceeding cash burn
‘U.S. gaming has been one of the hardest hit sectors in the consumer sector since the onset of the crisis, “Chad Beynon, gaming analyst at Macquarie Securities, said in the report, Las Vegas Journal Review.
“The closure of the casino domestically in combination with high indebtedness prompts investors to ask: how long can these balance sheets last in this current environment?” he added.
The closure of the casinos can be a major hit for the economy and labor market of Las Vegas, which is highly dependent on tourists and the entertainment and game industry.
Las Vegas-based Boyd Gaming Corp. burns approximately $ 3.2 million daily during shutdown. It has about 9.4 months to burn his money.
Penn National burns $ 6.4 million daily by 5.2 months before it exceeds the cash burn.
On Tuesday March 17, Nevada Governor Steve Sisolak ordered a state-wide shutdown of all non-essential businesses for 30 days – including casinos, bars and restaurants to prevent the spread of COVID-19. The empty Las Vegas strip pictured above on Wednesday
The closure of the casinos can be a major hit for the economy and labor market of Las Vegas, which is highly dependent on tourists and the entertainment and game industry. The exterior of a shopping center in Las Vegas pictured above Wednesday
The Paris Las Vegas hotel and casino pictured on Wednesdays. Usually this casino is teeming with tourists and guests, but this week it’s completely empty due to the non-essential 30-day business stop
Red Rock Resorts burn $ 1.7 million daily and have enough money to last 13.8 months.
Golden Entertainment burns $ 1 million daily over a 10.4-month period with its assets.
Across the country, 465 commercial casinos in the US have been closed due to the corona virus outbreak that infected more than 69,000 people across the country.
As of Wednesday night, there have been 405 COVID-19 cases in the state of Nevada and 10 deaths.
In light of the business stoppages and the coronavirus crisis, some companies have started firing employees.
MGM has already started firing some workers, while others promise one or two weeks’ wages to workers.
As of Wednesday night, there have been 405 COVID-19 cases in the state of Nevada and 10 deaths. Medical experts at a coronavirus testing site pictured in Las Vegas on Tuesday
Las Vegas city operations and maintenance personnel Denis Connelly washes the playground equipment at Centennial Hills Park as part of an effort to keep the city’s 70 parks open to the public during the Wednesday coronavirus pandemic
Part-time and full-time layoffs at MGM receive two weeks’ wages and benefits, and eligible employees are enrolled in the company’s health plans through June 30.
Boyd Gaming Corp. employees say the company pledged to pay an hourly wage to hourly wages, while managers receive two weeks’ wages. But it is not clear what will happen after that two-week period.
Caesars Entertainment Corp. continues to pay full-time, part-time and regularly scheduled employees for up to two weeks.
Employees affected by unpaid leave or leave will receive a fortnightly wages contribution until they return to work or until the end of June, the company said.
Golden Entertainment promised to pay all full-time hourly wages and salaried staff a week after their last working day. Those with company health insurance will keep the benefits during the temporary layoff period.
While operational changes and cost reductions will limit some losses, the casinos can face a difficult path forward if they are not allowed to open quickly.
This chart shows how the number of coronavirus cases has risen in the US in the past month
However, some experts say that banks will work with casino companies and adjust credit lines like they did in the 2008 economic crisis.
Gaming is a bit different from many other companies. It’s more difficult for a bank … to take over the building, take over the operations (if they run out of cash), ‘Jefferies gaming analyst David Katz told the Las Vegas Review Journal.
In Nevada, 25 percent of the state’s total job market works in recreation and hospitality, according to seasonally adjusted January data from the Nevada Department of Employment, Training, and Rehabilitation.
While casino representatives have yet to talk about how the crisis could hit them, MGM noted that outgoing CEO and chairman Jim Murren said the company’s recent real estate transactions helped it achieve (its) strongest balance in the past decade. ‘