Nevada Governor Steve Sisolak declared the spread of the coronavirus to be a state emergency, in response to more than 20 reported cases throughout the state.
The spread of the coronavirus has caused an unprecedented shutdown of the Las Vegas Strip, seriously disrupting the tourism industry, including the furlough or layoff of thousands of hotel and casino workers.
Nevada state health officials have identified 17 known cases of Covid-19 in Clark County, including at least one case of coronavirus at a resort on the Strip. Three more cases of the virus have been reported in Northern Nevada, in the Reno area. However, no coronavirus related deaths have been reported in the state.
Wynn Resorts Responds to the Outbreak
Wynn Resorts Ltd. closed its two Las Vegas properties beginning at 6 p.m. on March, 17, to help stop the spread of Covid-19. Wynn expects the closure to last two weeks, after which time the company will evaluate the situation.
However, full-time Wynn and Encore employees will continue to receive their regular pay during the shutdown. Furthermore, a few employees, as well as management, will continue to work at the properties in order to maintain and secure the properties.
In addition to closing its casinos, hotels, and resorts, Wynn Resorts has also closed its Encore Beach Club and XS Nightclub, as well as canceling all of its large entertainment venues. For example, all performances of the Wynn Theater production “Le Rêve, The Dream,” which features synchronized swimmers, have been canceled until further notice.
Likewise, Wynn Resorts theaters, buffets and nightclubs in Boston have closed, including the restaurants Lakeside, Costa di Mare, Mizumi and Wazuzu. Wynn Macau and Encore Macau also experienced a 15-day casino shutdown.
The most dramatic measure taken by Wynn Resorts is they are now using “non-invasive” thermal cameras to evaluate the body temperatures of their guests.
“We will screen for temperature using non-invasive thermal cameras at every one of our entrances,” Wynn CEO Matt Maddox said about the new company policies crafted in response to the spread of Covid-19. The temperature readings will determine whether a guest can stay or must leave; fever is a symptom of coronavirus.
“Anyone with a temperature of 100.4F or more will be quietly told by a trained member of our security team and will not be allowed to remain inside the resort,” according to a company statement.
Wynn and MGM shares plummet nearly 30%
Las Vegas casinos, hotels, and resorts were hard hit after temporary closures were announced, due to mandated policies in response to the spread of Covid-19.
Wynn Resorts shares plummeted 24% the day following the announcement it would temporarily close its Boston and Las Vegas properties for at least two weeks.
Likewise, MGM shares crashed by 33% after announcing it would also close its properties. Bally’s, Harrah’s, and Caesars Entertainment also saw shares fall by similar margins as investors took a look at the revenue hit that would follow the shutdown announcements.
With casino and resort revenue streams appearing as if they will be hampered for the foreseeable future, investors are trying to determine which companies will be in the best position to weather the storm.
For savvy investors, this collapse in Wynn’s, MGM’s, and Caesars’ share prices could present a unique opportunity to buy, according to Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber.
“Be patient, it’s going to take three months to get the market to work this recession correctly, but boy, this is as good as it gets for stock pickers like me,” said Gerber.
However, for the Las Vegas economy, the temporary shutdowns will be significant; MGM and Caesars have already announced layoffs. The hospitality industry accounts for almost 30% of employment in Las Vegas.
