LAS VEGAS — The glitzy and sometimes reckless Las Vegas money machine ground to a halt on March 18, as Governor Steve Sisolak issued a sweeping statewide order to stop the spread of Covid-19. The order cuts off money from the industry that fuels Nevada’s tourism and hospitality-based economy.
The last time Las Vegas casinos closed was for John F. Kennedy’s funeral on Nov. 25, 1963. Michael Green, a history professor at the University of Nevada, Las Vegas, said that to his knowledge, this was the first time every casino in Nevada has been ordered to close. Likewise, this week’s state-ordered casino closures were only the fourth since gambling was legalized in 1931. “The state sometimes revokes a license and orders one casino closed, but nothing like this,” he said.
The Democratic Governor ordered the unprecedented month-long shutdown of gambling, not only in the world-famous casino resorts, but also the ubiquitous slot machines found everywhere in the state, from gas stations to grocery stores.
The governor’s broad directive also includes shutting down non-essential businesses such as bars, gyms, salons and movie theaters, as well as the state’s brothels. Restaurants must close their dining areas and only offer takeout or delivery.
“Coronavirus affects the lives of our citizens. People are dying. Every day that this is delayed, we’re losing a dozen people on the back end that are going to die as a result of this,” Sisolak said at a news conference.
It’s just not Nevada
Governor Sisolak’s order follows similar orders by more than 10 other governors as states nationwide work to reduce the risk of exposure to the novel coronavirus.
The governor gave thousands of businesses across the state less than one day to prepare. Although several casinos began closing their doors last week, Sisolak’s sweeping order closed down Nevada’s main industry, anchored in the shimmering casinos along the Las Vegas Strip.
The closures in Nevada are simply part of the federal guidelines recommending social distancing. President Donald Trump has strongly advised all Americans to follow the guidelines for the next few weeks; the guidelines also include advising older people to stay home and for everyone to avoid gatherings of more than 10 people.
The Hoover Dam, spanning the Arizona and Nevada border, is another big tourist attraction; it’s temporarily closed to visitors “because of the nature of the structure and an inability to implement social distancing standards recommended by the CDC”, according to a statement. Tours of the Hoover Dam are managed by the federal park service.
Las Vegas mayor doesn’t think it’s necessary
Governor Sisolak’s unprecedented order came after many casinos in Las Vegas shut their doors voluntarily. However, the mayor of Las Vegas said she hoped restaurants and bars could remain open.
“I hope that private businesses rise to the top, that they’ll be allowed to stay open and take care of the families that live paycheck to paycheck,” said Mayor Carolyn Goodman.
Mayor Hillary Schieve of Reno had issued a similar order to Sisolak’s a day earlier, advising many of the non-essential businesses to close starting Friday the 13th at 5 p.m. The Reno mayor at first included casinos but rescinded that, allowing them to continue operating until the Governor’s order.
In Las Vegas, Wynn Resorts and MGM Resorts International announced they planned to close their properties, and three more casino resorts followed that decision. That was before Governor Sisolak’s executive order.
The MGM closed 13 properties in Las Vegas, included the Bellagio and its famous fountain show, which often draws crowds to watch the gorgeous fountains shoot as high 460 feet into the air, choreographed to colorful lights and music.
Where Nevada stands in the coronavirus epidemic
Nevada has more than 50 reported cases of the virus thus far, including one death. While for most people, Covid-19 only causes mild or moderate symptoms such as cough and fever; however, for some people, especially older adults and those with pre-existing health problems, the virus can cause more severe symptoms, including pneumonia.
Nevada’s tax coffers will suffer
With businesses of all types closing and tourism dropping off, Nevada is forecasting a financial downturn, but how big is up for debate.
Gambling taxes are second only to sales taxes as a percentage of Nevada’s annual budget. The hospitality and leisure industry directly employs 25% of the workers in the state, with an economic output of $68 billion. Those numbers are according to the Nevada Resort Association.
Nevada’s biennial Legislature is not scheduled to meet until 2021, and leaders of the legislature have not yet planned a special session to address the state’s budget.
Assembly Speaker Jason Frierson and Senate Majority Leader Nicole Cannizzaro, both Democrats, said in a joint statement that they’re weighing all options and working closely with the governor. But at this time, there are no plans to go into a special session.
State officials haven’t yet released numbers on how many Nevadans have filed for unemployment benefits over the past week. Governor Sisolak indicated that the state was in “relatively good shape” to pay unemployment claims, however, that can’t last forever. The state is also working to get additional assistance from the federal government.
