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How long can Las Vegas casino companies survive a COVID-19 shutdown?


LAS VEGAS – The spread of COVID-19 and subsequent shutdown of casinos across the U.S. is putting the cash reserves of major resort companies in Sin City to the test.

Nevada Gov. Steve Sisolak ordered a 30-day closure for all businesses, turning the Strip – home of the most iconic hotel-casinos in the world – into a ghost town.

As the pandemic expands and the number of cases accelerates, there’s no telling whether the lockdown will be extended in coming days and weeks, and that element of the unknown raises an important question within this tourist-dependent corridor: 

How long can companies survive?

Projections vary.

After crunching “cash burn” data, some analysts contend companies like MGM Resorts International and Caesars Entertainment have money to last anywhere from eight to 16 months, according to Barron’s

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That translates to 239 days of liquidity for Caesars and 563 days for MGM Resorts.

Wynn Resorts and Las Vegas Sands – companies with a strong gaming presence in China – both have 15-20 months of cash available to wait out the pandemic, according to Macquarie Research Analyst Chad Beynon.

Macquarie released a report this week detailing just how much cash these casino companies are burning every day with no vacationers visiting properties – and how long they can stay closed without running out of money.



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