Nevada casino operators are developing health and safety strategies in anticipation of a reopening date set by Gov. Steve Sisolak. As they await this date, they are also contemplating strategies for operating their casinos.
Nevada casinos experienced a rapid shift from near-normal hotel room occupancy in March to a total shutdown following Governor Sisolak’s directive to close. This was due to potential guests staying at home to help contain the spread of the coronavirus nationwide. Last week, during earnings calls, representatives from Boyd Gaming and MGM Resort noted a sense of anticipation among some guests eager to return to casinos. Station Casinos subsequently revealed their own plans to reopen their properties.
The significance of the plans lies in the fact that not all individuals are prepared to immediately journey to the Silver State to enjoy its casinos. Nevada’s casinos, especially those in Las Vegas, cater to two distinct customer groups – locals and tourists. Local residents can easily drive to their preferred neighborhood casino. Conversely, tourists have the option of either driving or flying to the casinos.
Every casino operator has different casinos. Boyd Gaming, for instance, serves all casino guests visiting Las Vegas.
Las Vegas Casino open or closed?
Keith Smith, the President and Chief Executive Officer of Boyd Gaming, stated in the company’s first quarter earnings call that their Las Vegas casinos would likely reopen in various stages. He further explained that all local casinos would reopen on the day Governor Sisolak gives the green light. The local casinos in Las Vegas owned by Boyd Gaming include:
- Aliante
- Cannery
- Eastside Cannery
- Gold Coast
- The Orleans
- Sam’s Town
- Suncoast
The company plans to adopt a unique strategy for its downtown Las Vegas casinos. These establishments attract more tourists from various states compared to local patrons. The subsequent casinos rely more heavily on diverse tourist populations than on local casino-goers.
- California
- Fremont Hotel and Casino
- Main Street Station
The Fremont Hotel and Casino attracts guests who may be visiting Las Vegas to enjoy the Fremont Street Experience. The California and, to a lesser degree, Main Street Station, receive numerous guests from Hawaii who travel on Boyd Gaming’s charter flights.
Smith indicated that the company will monitor air travel from Hawaii and pedestrian traffic at the Fremont Street Experience prior to revealing their opening plans. Keep an eye out for the announcement of opening plans for Boyd Gaming properties in downtown Las Vegas.
MGM Resorts Opening Plans
In MGM Resorts International’s first quarter earnings call, acting CEO Bill Hornbuckle announced the company’s plan to gradually reopen its Vegas Strip properties. The first two to open will be Bellagio and New York-New York. The decision to open a third will be dependent on demand.
Bellagio is set to open as MGM Resorts’ luxury property, taking on competitors such as The Venetian and Wynn Las Vegas upon their opening. On the other hand, New York-New York will cater to more MGM Resorts customers as a more affordable option.
Hornbuckle states that despite the company owning several similar properties, they believe that the New York-New York casino will be easier to manage due to it having fewer rooms compared to some of the larger properties.
As they anticipate the return of tourists to Las Vegas, MGM Resorts plans to alter the layout of casino floors across all their properties. Hornbuckle, during the call, mentioned that new carpets were already being installed at Park MGM and Aria.
Station Casinos Phased Opening Plans
In a press release last week, Station Casinos disclosed its phased reopening plan. The most significant update isn’t about which casinos will be reopening immediately. Station Casinos has no intentions of reopening Palms, a property frequented equally by tourists and locals.
The following Station Casinos will be reopening immediately.
- Boulder Station
- Green Valley Ranch
- Palace Station
- Red Rock Casino
- Santa Fe Station
- Sunset Station
In addition, during the first phase, Station Casinos will be opening its smaller Wildfire properties. The opening dates for the following Station Casinos properties are yet to be decided:
- Fiesta Henderson
- Fiesta Rancho
- Palms
- Texas Station
The Palms, the most renowned property of Station Casinos, won’t be reopening in the initial phase, which is not particularly surprising for two main reasons. Firstly, the Palms is perceived as a property that primarily attracts tourists rather than locals. Therefore, it could be logical to keep the property closed if the number of tourists in Las Vegas is expected to be low when the casinos first reopen.
Furthermore, Palms had been financially underperforming before it was compelled to shut down. Station Casinos had purchased Palms for over $300 million and then invested $690 in its renovation. Last year, Palms negatively impacted the overall earnings of the company.
Rumors are already circulating that Palms might be up for sale. This isn’t very surprising, considering Red Rock Resorts (the parent company of Station Casinos) announced plans to sell some properties or land during their earnings calls last year.
More Casino Openings Pending
At the time of writing this article, a definitive reopening date for all Nevada casinos has not been established. Like the previously mentioned companies, Caesars intends to implement a staggered reopening strategy. During their latest earnings call, Caesars CEO Tony Rodio indicated that the company plans to open Caesars Palace and a “value property” located across the street as soon as they receive official permission to resume operations.
Based on the regular coronavirus updates by Sisolak, other casino operators are adjusting their reservation dates. An official opening date is expected to be announced shortly.
