MGM Resorts burn up to $14.4M a Day During Covid-19 Shutdown

0
200

MGM Resorts International, which runs 13 luxury casinos in Las Vegas and dozens of others across the country, is burning $14.4 million daily with nine months before it runs out of cash, according to the report.

Penn National Gaming, which runs the M Resort in Henderson and Tropicana on the Las Vegas Strip, along with several various other casinos nationwide, just has 5.2 months before it goes belly up while it sheds $6.4 million for each and every day the doors are shut.

Golden Home Entertainment and Red Rock Resorts are business that are in the very best setting to survive the closure. The research projects them to have 10.4 months and 13.8 months of runway, specifically before the checking account go to absolutely no.

According to the American Gaming Association, all 465 industrial gambling enterprises in America are closed. Virtually every tribal gambling establishment is closed also. The length of the closures varies from state to state with closures for as brief as 2 weeks as well as varying upward from there.

In Nevada, casinos statewide will certainly be closed up until at least the end of the Gov. Steve Sisolak’s 30-day closure, which was revealed on March 18.

Jefferies video gaming expert David Katz told the Las Vegas Review-Journal that although these numbers look stark, the banks will want to work with them throughout the slump.

Gaming is a little bit different than a lot of other businesses,” said Katz. “It’s harder for a bank… to take over the building, take over the operations (if they run out of cash).

Before beginning to even work with the banks, many lobbyists for the industry already began asking Congress for a federal bailout last week.

Here’s a look at what Macquarie’s analysis found:

  • Monarch Casino and Resort (Reno): 14.3 months, burning $300,000 a day.
  • Red Rock Resorts: 13.8 months, burning $1.7 million a day.
  • Golden Entertainment: 10.4 months, burning $1 million a day.
  • Boyd Gaming: 9.4 months, burning $3.2 million a day.
  • MGM Resorts International: 9 months, burning $14.4 million a day.
  • Penn National: 5.2 months, burning $6.4 million a day.