Las Vegas Strip Casino Leaders Take Unexpected Covid Hit
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Covid has flared up and is causing problems for three Las Vegas-based companies. Caesars Entertainment and MGM Resorts International took a hit during the pandemic. The city's casinos, hotels and restaurants were closed for about two months. Trade shows were cancelled or went virtual. Consumer Electronics Show returned in January 2022. By March Madness and late-April's NFL Draft, the Strip was operating nearly normal.
Macau ordered all nonessential businesses closed from July 11 through July. The shutdown affects three Las Vegas-based casino companies: Las Las Sands Corp., with five properties, Wynn Resorts Limited Report, with three resorts, and MGM Resort International, which partners on two properties in the Chinese enclave. LasLas Vegas Sands is the most affected as it no longer has any Las Angeles properties. Chief Executive Rob Goldstein talked about the company's Macau exposure during its first-quarter earnings call. The company is confident that it will return to positive cash flow in both Macao and Singapore in future.
Covid is a pandemic. Las Vegas is unlikely to be shut down again. The current variant does not generally lead to hospitalizations for vaccinated people. If a deadlier variant becomes prevalent, Las Las Vegans could see another covid shutdown.
