The coronavirus pandemic shutdown dragged casino industry revenue down to record levels during the first quarter of the year. The prolonged shutdown drastically cut revenues of the casinos and caused significant losses to operators as they continuously paid employees while on out of business.
The hope of recovery is high as casino stocks rally as investors placed their bets on Las Vegas casino reopening.
Casinos in Las Vegas shut down operations for months and resumed operations on June 4. The casinos followed health and safety standards and ensured social distancing inside the casino upon returning business.
Many casinos resumed their operations on Thursday. Guests from other states traveled miles and waited in lines outside the casino entrances to gain entrance and enjoy. Wynn Resort delayed its plans to reopen in the earlier hours of the day because violent protests took place over the death of George Floyd, who died during an arrest of police in Minneapolis.
MGM Resorts stocks rallied after Las Vegas reopening
Publicly traded casino stocks rallied as investors placed their bets on the reopening of casinos in Las Vegas. Following Nevada’s announcement of plans to resume operations, searches online of flights to the state increased by 100%. It implies that Las Vegas will soon see its gambling industry back to its regular foot traffic.
MGM owns famous destinations, including MGM Grand, Mandalay Bay, and New York. The company’s stocks had declined by 34.27% this year. However, it showed recovery following the rise of its market value of $10.71 billion, an increase of 50% from its value last month.
Wynn Resorts, Las Vegas Sands stocks rallied
Other casino stocks in the state also rallied, just like MGM. Wynn Resorts, Limited, owns properties in Las Vegas, and Macau reported a significant rise in gambling activity in its Macau casinos after government lockdowns eased.
The company reported an increase in the stock of 18.56% from last month as of June 5, this year. Wynn Resorts’ share rose from $40 in March to near $140 because of the massive volume of gambling activities during the reopening.
Las Vegas Sands Corp., the owner of successful casinos and resorts in the US, Asia, Macau, saw stock value rising. The company’s stock has increased by 15 percent from last month to June 5.
Gambling activities in Las Vegas casinos continued to increase since the reopening. Gamblers swarmed the resorts and casinos Saturday afternoon. Casino floors were filled with gamblers, and people went out to stores practicing social distancing.
Resort pools attracted lots of guests. However, the capacity of pools was limited. People needed to wait for others to leave before they gain entry. The vast crowd last weekend showed great potential for the industry to recover from the impact of the pandemic.