Report: MGM Resorts Losing $14.4 Million Per Day During Coronavirus ShutdownAccording To Report From Macquarie Research, Las Vegas Gaming Giant Has Nine Months Before Balances Reach Zero |
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In the eyes of gamblers, casinos are generally looked at as a very profitable business that rakes in the cash.
In the wake of COVID-19 and the spread of coronavirus throughout the countries, American casinos are hemorrhaging it instead of raking it in.
According to a recent report from Macquarie Research, some casino giants only have five months before they lose it all.
Las Vegas-based MGM Resorts is losing $14.4 million daily while its 18 casinos are temporarily shut down. At the current rate, MGM would be out of cash in nine months.
Penn National Gaming, which operates the M Resort in Henderson and Tropicana on the Las Vegas Strip, as well as several other casinos nationwide, only has 5.2 months before it goes belly up while it loses $6.4 million for each day the doors are closed.
Golden Entertainment and Red Rock Resorts are companies that are in the best position to survive the shutdown. The study projects them to have 10.4 months and 13.8 months of runway, respectively before the bank accounts are at zero.
According to the American Gaming Association, all 465 commercial casinos in America are closed. Nearly every tribal casino is closed as well. The length of the shutdowns varies from state to state with closures for as short as two weeks and ranging upward from there.
In Nevada, casinos statewide will be closed until at least the end of the Gov. Steve Sisolak’s 30-day shutdown, which was announced on March 18.
Jefferies gaming analyst David Katz told the Las Vegas Review-Journal that although these numbers look bleak, the banks will be willing to work with them during the downturn.
“Gaming is a little bit different than a lot of other businesses,” said Katz. “It’s harder for a bank… to take over the building, take over the operations (if they run out of cash).”
Before beginning to even work with the banks, many lobbyists for the industry already began asking Congress for a federal bailout last week.
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