Nevada Bets on Big Comeback After Vegas Revenue Tumbles 46%

Casino revenue on the Las Vegas Strip tumbled 46% to just under $300 million in March, underscoring the steep hit to jobs and tax revenue that Nevada is taking from the coronavirus shutdown.

Casinos were ordered closed in mid-March by Governor Steve Sisolak, a Democrat. Unemployment has swelled in that time, and the governor has told state agencies to find cuts in their budgets.

Meanwhile, debate has swirled over when the state can reopen. Las Vegas Mayor Carolyn Goodman has pressed for a quick return to business, calling the shutdown “total insanity.” Sisolak said he’ll reveal his “Roadmap to Recovery” on Thursday.

“I am able to make announcements this week because so many of you have stayed home for Nevada and helped flatten the curve against #COVID19,” he said on Twitter Tuesday.

Nevada Gaming Control Board Chairwoman Sandra Morgan said in an April 27 interview with the Las Vegas Review-Journal that the state’s chief casino agency is making plans for resorts to open with limits on capacity.

Some casino operators have gone further, with Wynn Resorts Ltd. releasing detailed plans that include temperature checks at entrances and guests being greeted with amenity bags that include face masks and hand sanitizer.

Las Vegas tourism authorities have been considering what marketing may look like for a city famous for its naughty “What Happens in Vegas, Stays in Vegas” campaign. One option, according to tourism officials, is a campaign featuring casino employees and their work to keep the city’s resorts clean and fun.

Poised to Open

On an earnings conference call Tuesday, Las Vegas-based Boyd Gaming Corp. said it would open its properties across the country as soon as allowed, even though the resorts cater to customers with different demographic and economic profiles.

“I don’t see a phasing,” Chief Executive Officer Keith Smith said on the call, adding that the level of business after reopening will depend on how many tourists decide to return to Las Vegas, particularly by air.

“Downtown, with the three properties dealing largely to the Hawaiian market and then to crowds on Fremont Street, I think our business is going to look different,” Smith said. “And we’ll have to wait and see how inbound tourism from Hawaii looks.”