Casino operators in Nevada are developing health and safety strategies for their eventual reopening, pending a date set by Gov. Steve Sisolak. In the meantime, they are deliberating on the best methods to resume their operations.
Nevada casinos experienced a sudden drop in hotel room capacity, going from near-normal in March to zero overnight due to closure directives from Sisolak. This was in a bid to curtail the coronavirus spread as potential guests opted to stay home. During the earnings calls from last week, representatives of Boyd Gaming and MGM Resort expressed a feeling that there’s growing excitement among some guests for casino re-opening. This was followed by Station Casinos announcing their own reopening plans.
The importance of the plans is underscored by the fact that not everyone will be prepared to immediately travel to the Silver State and patronize casinos. Casinos in Nevada, especially those in Las Vegas, cater to two distinct customer segments – locals and tourists. Local residents can easily drive to their preferred nearby casino. Tourists, in contrast, may choose to either drive or fly to the casinos.
Every casino operator has different casinos. Boyd Gaming, for instance, caters to all casino guests who visit Las Vegas.
Las Vegas Casino open or closed?
During the first quarter earnings call of Boyd Gaming, Keith Smith, the President and CEO, indicated that the company’s Las Vegas casinos are likely to reopen in various phases. The local casinos will all reopen on the day stated by Sisolak. The local casinos of Boyd Gaming in Las Vegas include:
- Aliante
- Cannery
- Cannery Eastside
- Coast of Gold
- The Orleans
- Town of Sam
- Suncoast
The company will adopt a unique strategy for its downtown Las Vegas casinos, which attract a higher number of tourists from other states. The reliance of these casinos on various tourist groups is greater than that of the local casinos.
- California
- Casino and Hotel Fremont
- Station on Main Street
The Fremont Hotel and Casino attracts guests who may be visiting Las Vegas to enjoy the Fremont Street Experience. The California and Main Street Station, to a lesser degree, host many guests from Hawaii who travel on Boyd Gaming’s charter flights.
Smith stated that the company will monitor air travel from Hawaii and foot traffic at the Fremont Street Experience before unveiling their opening plans. Keep an eye out for the announcement of the opening plans for Boyd Gaming’s downtown Las Vegas establishments.
MGM Resorts Opening Plans
During the first quarter earnings call of MGM Resorts International, acting CEO Bill Hornbuckle stated that the company’s Vegas Strip properties would be reopened in phases. The first two MGM Resorts Las Vegas casinos to open will be Bellagio and New York-New York. The opening of a possible third casino is dependent on demand.
Bellagio is set to open as the luxury property of MGM Resorts, positioned to rival The Venetian and Wynn Las Vegas upon their opening. On the other hand, New York-New York will cater to a wider range of MGM Resorts customers as a more affordable option.
Hornbuckle asserts that despite the company’s numerous comparative properties, they believe New York-New York will be simpler to manage due to its fewer rooms compared to some of their larger properties.
MGM Resorts is modifying the design of all their casino floors while anticipating the return of tourists to Las Vegas. Hornbuckle mentioned during the call that they have already begun installing new carpet at Park MGM and Aria.
Station Casinos Phased Opening Plans
Last week, Station Casinos unveiled its staggered reopening plan in a press release. The most significant announcement is not about the immediate reopening of certain casinos. The Palms, a property frequented by both tourists and locals, is not included in Station Casinos’ reopening plan.
The listed Station Casinos will reopen immediately.
- Station Boulder
- Ranch of Green Valley
- Station Palace
- Casino Red Rock
- Station of Santa Fe
- Station Sunset
In addition to this, during the first phase, Station Casinos will open its smaller Wildfire properties. The opening dates for the following Station Casinos properties are yet to be decided:
- Henderson Fiesta
- Rancho Fiesta
- Palms
- Station Texas
The Palms, the most well-known property of Station Casinos, will not be reopening in the initial phase. This decision doesn’t come as a significant shock for two main reasons. Firstly, the Palms is perceived as a property that primarily attracts tourists rather than locals. With the anticipation of fewer tourists in Las Vegas as casinos begin to reopen, it could be logical to keep the property closed initially.
Furthermore, Palms had been experiencing financial difficulties even before its forced closure. Station Casinos, after acquiring Palms for over $300 million, invested an additional $690 in property renovations. Nevertheless, Palms negatively impacted the company’s overall earnings last year.
Rumors are already circulating that Palms may be up for sale. This speculation is not far-fetched considering that Red Rock Resorts, the parent company of Station Casinos, expressed intentions to sell some properties or land during last year’s earnings calls.
More Casino Openings Pending
At the time of penning this article, a definitive opening date for all Nevada casinos is yet to be announced. Similar to the other companies, Caesars is planning a phased reopening. During the latest earnings call, Tony Rodio, CEO of Caesars, mentioned that they would probably reopen Caesars Palace and a “value property” located across the street once they receive the green light to resume operations.
Other casino operators are adjusting their reservation dates based on Governor Sisolak’s regular updates about the coronavirus. An official opening date is expected to be announced soon.
