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Against coronavirus, Las Vegas casinos roll snake eyes
New Las Vegas slogan revealed
‘What happens here, only happens here,’ is the new slogan of Las Vegas, Nevada.
Las Vegas casino operators have been bruised and battered by economic fallout from the COVID-19 pandemic, and some are now fighting to stay afloat.
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The S&P 500 Casino & Gaming subsector index has seen its market value plunge by 47 percent since the close of business on Jan. 17, the last trading day before COVID-19 was first reported in the U.S. Gaming giants like MGM Resorts have seen their stock prices take hits of 75 percent.
MGM RESORTS INTERNATIONAL
LAS VEGAS SANDS CORP
WYNN RESORTS LIMITED
“The question now, more than anything, becomes who has the liquidity, meaning who has the cash flow, who has access to a revolver, to be able to weather this storm,” Barry Jonas, New York-based analyst at SunTrust Robinson Humphrey, told FOX Business.
“There's a lot of uncertainty in terms of how long the casinos will close," he said. "For now, it's 30 days, and then on top of that, once we do emerge from this, there's a real question as to how the consumer psyche is affected.”
The COVID-19 pandemic has brought the global economy to a near standstill, forcing governments to issue “shelter in place” orders, people to practice social distancing and the cancelation of non-essential travel.
In a first since former President John F. Kennedy’s death in 1963, Las Vegas casinos were shuttered on Wednesday, for at least the next month, in an effort to prevent the spread of COVID-19.