Why Re-open the Las Vegas Strip?
On March 15th, both Wynn Resorts (NASDAQ: WYNN) and MGM Resorts International (NYSE: MGM) – having already experienced the impact of coronavirus in Macau – announced plans to temporarily close their Las Vegas Strip properties. And then on Tuesday, March 17th, Nevada Governor Steve Sisolak decided for the rest of the state of Nevada, ordering Nevada residents to stay home and the closure of non-essential businesses for the next 30 days, thus shutting down the entirety of the Nevada gaming industry for the first time in its history.
Image Source: Wynn Resorts
It was a bold, decisive move that – frankly speaking – took a lot of guts and will have saved many lives. But in an instant, the almost entirely Strip-dependent and tourist-driven Las Vegas economy came to a screeching halt, with massive furloughs and layoffs coming across the gaming industry, and no clear end in immediate sight. As it is, MGM, Caesars Entertainment (NASDAQ: CZR), Penn National Gaming (NASDAQ: PENN), and suppliers including IGT (NYSE: IGT) have all announced significant furloughs and layoffs. Nightclub/dayclub operator Hakkasan Group – the company behind Hakkasan night club and Wet Republic dayclub at MGM Grand, Omnia at Caesars Palace, and Jewel at Aria, among others – reportedly laid off its entire 1,600-person Las Vegas workforce, while the Tao Group (Tao at the Venetian, Lavo at the Palazzo, and Marquee and Beauty & Essex at the Cosmopolitan) temporarily laid off its part time staff.
Source Fool.com
