Las Vegas casinos prepare to reopen Thursday amid civil unrest

As Las Vegas prepares to launch a “Welcome Back” ad campaign to encourage visitors to come, the risks of coronavirus are joined by civil unrest.

Thursday is the scheduled reopening for Nevada’s casinos, but over the weekend, the National Guard was called up to respond to riots in Reno, and the mayor declared a citywide emergency. In Las Vegas, squads of police shot rubber bullets at protesters and released tear gas on the Strip.

The protests, which erupted following the death of George Floyd after a police officer knelt on his neck in Minneapolis, and accompanying unrest have the potential to disrupt what had been a surprisingly strong response to the scheduled reopening, CNBC reports.

To our employees, partners and loyal guests in the Black community, we stand with you and with all diverse communities who confront injustice. Make no mistake, at MGM Resorts, we firmly believe that #BlackLivesMatter.

Full statement: https://t.co/XrCM19BdOD pic.twitter.com/zSeNwBExLj

— Bill Hornbuckle (@billhornbuckle) June 1, 2020

Last week, Caesars Entertainment said demand for reservations was so strong, the company decided to reopen a third property, adding Harrah’s to Caesars Palace and the Flamingo. MGM Resorts also added MGM Grand to its planned reopening list that already included Bellagio and New York New York.

“The current circumstances are tragic and negative for any business that requires physical access — certainly casinos would be included,” said David Katz, a gaming industry analyst at Jeffries.

The same is true in Missouri, where the planned reopening of casinos continued Monday. Eldorado Resorts is opening five casinos Monday in Missouri and Iowa, including Lumiere Place Casino & Hotels near the iconic St. Louis Arch. Over the weekend in and around that city, protests turned violent, with a man killed after being dragged by a FedEx truck.

Barry Jonas, a gaming analyst at SunTrust Robinson Humphrey, said: “We think initial pent-up demand for the Strip (and most U.S. casinos) will center on drive-to gamblers who are more risk tolerant.” In Las Vegas, drive-in tourists accounted for roughly half of all visitation. With worries over the safety of air travel in the midst of the coronavirus pandemic and the widespread cancellation of conferences and conventions, casinos predict drive-to visitors will make up the bulk of their revenue in the near term.

In just a few days we will welcome guests back to @CaesarsPalace, @FlamingoVegas, @LinqPromenade, then @HarrahsVegas. pic.twitter.com/wbqvUOV4sQ

— CaesarsEntertainment (@CaesarsEnt) June 1, 2020

“Sustained protests certainly don’t help bring back a wider audience of leisure and group customers,” Jonas said. “But we don’t see those segments returning in full force anytime soon anyway, given coronavirus.” Katz said he anticipates that there will be some impact to traffic based on fear in many markets. However, he said the larger question is whether the demonstrating reaccelerates the number of Covid-19 cases, “which creates the potential for a larger lingering impact.”

Shares of MGM, which have a market value of $8.8 billion, were up more than 4% in trading Monday. The stock is down more than 46% since the year began. Meanwhile, Caesars shares inched up less than 1%. Caesars’ stock has a market value of $7.9 billion, and it has fallen nearly 16% since the start of the year. Eldorado shares, which have a market value of $2.8 billion, have fallen nearly 39% year to date but were up more than 2% in trading Monday.

As Las Vegas begins reopening, many procedures are put into place to help limit the spread of COVID-19. The city has over 150,000 hotel rooms, but it might be a while until they start seeing pre-pandemic numbers. However, tourists shouldn’t be concerned during their stay. All hotels must comply with the cleaning standards of the Centers for Disease Control, World Health Organization, Southern Nevada Health District, and the state’s Gaming Control Board.

Housekeepers must refresh all linens and glasses between stays, and spending extra time wiping down high-touch surfaces like phones and TV remotes. Most resorts are opening pools and party decks. However, social distancing measurements will be in place, as there will only be a limited number of people allowed in these areas at once.

Casinos will have a different look on their floors, with multiple hand sanitizer stations available for patrons. Casino goers will have to socially distance, and casinos have already put in precautions. 

Blackjack tables, which usually seat six people, will only allow three people per table. Also, the Nevada Gaming Control Board stated will only allow six people total, and three people on each side to play at a craps table. The game allows up to 14 people to play with seven players on each side of the table. A limit on the number of slot machines is also expected.