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

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

Story continues below

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.


Source link

By Javier Manning

Javier has been in the field of content writing for almost 8 Years as he hails from the Biotechnology background. The edifying articles portray her craving towards language. His keen hobby of reading technological innovations related books or articles has sown the seed of being a well-versed editor with the current scenario of numerous industry verticals. He is one of the valuable assets to this publication. The Industry News Press has awarded him with a senior editors post based on his skillful performance to date.