The casino and gambling business in Las Vegas, Nevada, has taken a significant hit in 2020. The global COVID-19 pandemic has put all the Las Vegas casino and resort businesses into heavy economic losses. According to a recent survey, casinos on the Las Vegas Strip have registered a significant dip in their revenues. As of July 2020, their revenues have dropped by a whopping 39%, the value of which is estimated to be around $330 million.
Revenues of Las Vegas casinos have fallen miserably over the past few months. The nationwide lockdowns since mid-March have completely emptied all the casinos in Las Vegas. The whole city is under a massive financial debt after not receiving any footfall for over half of the year. From a year ago, the casino businesses in Las Vegas are barely running their operations, with rampant unemployment and ongoing loss of revenue still worsening their conditions.
The total casino revenues of the Nevada state in 2020 sank by 26% to a value of $756.8 million. The Nevada gambling commission officials also said the tax revenues and other virus-related expenses continue to rise, further lowering the profitability of these casinos.
Casinos and resorts dominate the contribution to Nevada’s economy. To mitigate the situation, casinos are trying to lure guests with super-cheap pricing on their hotel rooms. Even the presidential suites are being offered at a typically low price. Other entertainment options in the city are gradually reopening. While the gaming revenues are not picking up pace, casino operators are finding turnarounds with discounts and free amenities.
Top casino hotels in Las Vegas, such as MGM Grand and Caesar’s, have been unable to meet their business demand. Their price-cuts on hotel rooms are attracting only a handful of people. Serving these people at low prices is also dropping their business profitability. A majority of hotel rooms in Las Vegas have remained vacant in the past few months. Their occupancy in 2020 is not even half of what it was in 2019. In the near future, only a complete lift of the COVID-19 lockdown will open an opportunity for Las Vegas casinos to restart their business. If the pandemic continues for more months, there is a strong likelihood that several casinos and resorts in Las Vegas may have to shut their doors down permanently.