{"id":26336,"date":"2020-03-11T08:56:35","date_gmt":"2020-03-11T16:56:35","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=26336"},"modified":"2020-10-16T07:09:27","modified_gmt":"2020-10-16T15:09:27","slug":"gaming-stocks-immune-to-rally-casinos-get-serious-about-coronavirus","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/gaming-stocks-immune-to-rally-casinos-get-serious-about-coronavirus\/","title":{"rendered":"Gaming stocks immune to rally; Casinos get serious about coronavirus"},"content":{"rendered":"

Gaming stocks by and large didn’t feel the love on Wall Street<\/strong> yesterday, trending slightly downward, not counting 9% rallies for Station Casinos<\/strong> and Melco Resorts & Entertainment<\/strong> (the latter the only Macao<\/strong> operator to \"\"bounce back). The market recouped much of Monday’s selloff, reacting positively to the news that the federal government may raid<\/a> the FEMA<\/strong> budget to fund economic stimulus. (An order of priorities we find slightly unsettling<\/a>.)\u00a0\u201cMarkets are always enamored with tax cuts, or even the hope thereof. Yesterday\u2019s sell-off was so extreme that it\u2019s not at all surprising to see a bounce,\u201d Interactive Brokers<\/strong> Chief Strategist Steve Sosnick<\/strong> told the Boston Globe<\/em>. However, even vague talk of tax relief for leisure industries has not been enough to juice casino stocks.<\/p>\n

After all, tourism, their lifeblood, is being choked off. British Airways<\/strong> has suspended flights until April 4 and Delta Airlines<\/strong> is cutting service by 15%. Massachusetts<\/strong> Gov. Charlie Baker<\/strong> (R) is recommending travel restrictions<\/a>. Baker’s state has joined neighboring Rhode Island<\/strong> in declaring a state of emergency<\/a>. Cancellation of the Boston Marathon<\/strong> is on the table. If you’re planning on playing at Encore Boston Harbor<\/strong>, expect to have your temperature checked<\/a> when you walk through the door. (Ditto employees.) Said Wynn Resorts<\/strong>,\u00a0\u201cGuests or employees with a temperature of 100 or higher will \"\"be referred to a medical professional for further screening or treatment.\u201d It added that\u00a0\u201cWe are sanitizing our slot machines, kiosks, ATMs, and all high touch points throughout the gaming floor on an hourly basis.\u00a0All of our gaming supplies (eg, chips, dice, cards) are cleaned, refreshed or discarded every 4 hours.\u201d There will even be on-call doctors. The company will also provide affected workers with access to health care. Kudos to Wynn for getting out in front of this fast-moving situation.<\/p>\n

In Washington, D.C.<\/strong>, revisionist history has already taken hold, with Health & Human Services<\/strong> Secretary Alex Azar<\/strong> saying,\u00a0\u201cThe United States<\/span><\/strong> was always going to see a substantial number of cases.\u201d And Centers for Disease Control & Prevention<\/strong> Director Robert Redfield<\/strong> is conceding that the government was slow to respond, telling Congress, “If you’re a week late, that matters.” \u00a0National Institute of Allergy &\u00a0Infectious Diseases<\/strong> boss Anthony Fauci<\/strong> allowed that there were “some missteps,” adding, “But that has been corrected.” Unfortunately, there is still too much magical thinking afoot, like the government official who said,\u00a0“By April, you know, in theory, when it gets a little warmer, it miraculously goes away.”<\/p>\n

Caesars Entertainment<\/strong> issued a lengthy, one-page statement to Caesars Rewards<\/strong> members, too detailed\u00a0to reprise here. It doesn’t convey any new information about coronavirus and how to prevent it but, let’s face it, \"\"Caesars is no more privy to that data than is the Mayo Clinic<\/strong>. Extra hand-sanitizer stations are being deployed at Caesars properties, employees are exhorted to wash their hands more frequently and cleaning of “high-touch surfaces” is being increased. Most significantly, “We have suspended international business travel to areas with higher infection rates.” So it’s hardly business as usual at the Roman Empire. On the negative side, Caesars sent an employee home for wearing latex gloves on the job. Mixed message much?<\/p>\n

For its part, MGM Resorts International<\/strong> is closing buffets\u2014a sensible move\u2014at Luxor<\/strong>, Aria<\/strong>, Bellagio<\/strong>, MGM Grand<\/strong>, Mandalay Bay<\/strong>, The Mirage<\/strong> and Excalibur<\/strong>. (Caesars might want to follow suit.) Serving up a ladle-full of food that’s been handled by God knows how many people \"\"seems to us like an excellent way to catch something, although we will miss the all-you-can-eat crab legs. Then again, uncooked foods are an excellent way to contract coronavirus. (Speaking of which, Washoe County<\/strong> has its first confirmed case, so Reno<\/strong> casinos should start deploying the proverbial ounce of prevention, if they haven’t already.) Back to MGM: It has closed Aureole<\/strong>, Mizuya<\/strong> and Fleur<\/strong>. It assures players who have rewards associated with those tenants that refunds will be issued by March 20. Players will also be alerted as soon as those outlets are reopened.<\/p>\n

The Cosmopolitan of Las Vegas<\/strong> was one of many resorts that said they were “actively monitoring the situation.” They’re keeping abreast of the Southern Nevada Health District<\/strong> but preventive measures are unclear. The Sahara<\/strong>, fer chrissakes, sounded more concerned, concluding, “No employee hours or positions have been adversely impacted by the situation\u00a0at this time.\u201c Thank you, Alex Meruelo<\/strong>.<\/p>\n

Wynncore<\/strong> has doubled the amount of staff<\/a> detailed to clean slot machines, is frequently shredding card decks and has installed hand sanitizer for dealers at most table games. According to 8 News Now<\/strong>, the \"\"company “said any employee diagnosed with the virus would be placed on Medical Leave of Absence and would be paid<\/a> for the duration of their physician-mandated treatment.” Bravo! Plus an attaboy for retaining an independent expert from the Georgetown University Medical Center<\/strong>. MGM Resorts went farther still, with a wide-ranging response that included waiving the required hours to maintain eligibility for benefits on health plans, covering the cost of coronavirus testing and medicine (co-pays included) and honoring attendance days for workers immobilized by the disease.<\/p>\n

The Venetian<\/strong> issued a statement, by contrast, that sounded downright callous<\/a>, saying nothing about worker safety. Calling its own approach\u00a0\"\"“proactive but not ridiculous,” Venelazzo<\/strong> is increasing the number of staffers tasked to sanitize bathrooms. Sanitizers have been added to the casino floor but not on a one-per-table basis. (If this were Macao, the government would crack the whip.) Somewhat lackadaisically, Las Vegas Sands<\/strong> is only shredding cards “every few days” and not sanitizing them. Phil Ruffin<\/strong> at Treasure Island<\/strong> has yet to formulate a specific response. If MGM and Caesars were to get an A+ and A respectively, Sands would rate a D- and Treasure Island an F.<\/p>\n

Some customers would agree, including those interviewed by the Las Vegas Review-Journal<\/em>, who say the anti-viral measures are so low-key as to be invisible, with Canadian Dale Murray<\/strong> going so far as to say\u00a0\u201cThey\u2019re putting their heads in the sand.\u201d It does not help public
\nreassurance that several companies, including Boyd Gaming<\/strong> and Station clammed up<\/a> when the R-J<\/em> came calling.\u00a0\u201cPeople are looking for cues that show the companies are caring and they\u2019re working on their behalf,\u201d said Indiana University<\/strong> tourism expert\u00a0Jonathan Day<\/strong>.\u00a0\u201cIt\u2019s a chance to show how much you care, and create a safe place for people to relax and enjoy.\u201d<\/p>\n

A tone-deaf note was struck by American Gaming Association<\/strong> President Bill Miller<\/strong>. In a just-released statement, his primary concern was not with the safety of players but with getting a piece of any tax relief that Donald Trump<\/strong> might be promulgating. “As COVID-19<\/strong> impacts \"\"increasingly hit closer to home, we are communicating with administration (CDC, Office of the Vice President) and Congressional leaders, including the Congressional Gaming Caucus<\/strong>. In these ongoing discussions, we continue to reiterate the need for gaming\u2019s inclusion in any economic stimulus being considered …\u00a0We convened a call yesterday with more than 50 government relations representatives from AGA\u2019s membership to gauge priorities in any stimulus action, and we will work diligently to preserve industry interests over the coming weeks and months.” In other words, coronavirus: bad, no tax-deferments: worse. At least the AGA is feeling sufficiently confident to proceed with its MGM National Harbor<\/strong>-sited AGA Sports Betting Executive Summit<\/strong>, slated for March 16-18.<\/p>\n

What about Atlantic City<\/strong>? The following statement was issued by Borgata<\/strong>:\u00a0“We have enhanced our cleaning protocols that include placing hand sanitizer dispensing station in high-traffic areas, reinforcing \"\"proactive cleaning and increasing the frequency of disinfectant procedures. We continue to follow the CDC\u2019s guidelines and are closely monitoring for updates.” Unfortunately the CDC has been so far behind the curve that MGM might wish to look for more-proactive sources of guidance. The Golden Nugget<\/strong> is going even farther<\/a>, including a 21-day self-quarantine on employees who have traveled to affected areas.<\/p>\n

Meanwhile, if you would like to hasten your mortality by more conventional means, McDonald’s<\/strong> has introduced a Double Big Mac<\/strong>. The 720-calorie behemoth comes with four beef patties<\/a>. Talk about a heart attack on a plate.<\/p>\n

* Sports betting begins today at MGM Grand Detroit<\/strong> and Greektown Casino<\/strong>, with MotorCity<\/strong> expected soon to follow. Industry analyst Dustin Gouker<\/strong> thinks it’s a promising start but no more than that: “much work \"\"remains, particularly with the launch of online sports betting still a year\u00a0away<\/a>, if Michigan<\/strong> is to reach its potential as a market.\u201d Private-sector casinos should be able to cash in on March Madness<\/strong> but tribal ones are lagging badly. While Gouker expects an online-enabled Michigan market to eventually produce $7.5 billion in handle and $500 million in revenue, we’re a long way from that point at present. Although online regulations are still being formulated, Gouker allows that \u201cBy being thoughtful in their approach, Michigan lawmakers avoided some of the growth-stunting policies that will likely slow down states such as Illinois<\/strong>.\u201d<\/p>\n

* Eldorado Resorts<\/strong> is one casino lighter, having sold the Montbleu Resort Casino & Spa<\/strong> to fast-growing Maverick Gaming<\/strong>. Eldorado CEO Tom Reeg<\/strong> reiterated that he expects his company’s absorption of Caesars to be finished in the first half of this year. The Montbleu sale won’t close until July at the earliest.<\/p>\n

* Thanks to the burden borne by the tourism industry, Nevada<\/strong> residents pay no income tax, as you well know. However, 2018 personal income per capita ($49,176) was the 22nd-lowest in America<\/strong>. To add insult to \"\"injury, sales taxes (6.85%) are the seventh-highest in the country. That’s $1,679 per Nevadan. Except for Vermont<\/strong>, the Silver State collects the highest excise taxes. So the wealth isn’t trickling down and the taxation is happening from the bottom up. Isn’t it supposed to work the other way around? (Figures published by 247wallst.com<\/strong>.) In case you’re wondering, the only other gaming-enabled states with no income tax are Florida<\/strong>, South Dakota<\/strong> and Washington State<\/strong>.<\/p>\n

* Happy National Worship of Tools Day<\/strong>. Yes, it’s a thing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Gaming stocks by and large didn’t feel the love on Wall Street yesterday, trending slightly downward, not counting 9% rallies for Station Casinos and Melco Resorts & Entertainment (the latter the only Macao operator to bounce back). The market recouped … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[249,235,23,60,244,66,28,44,18,42,14,199,36,283,76,241,62,72,112,282,222,245,259,69,119,79,141,54,182,243,57,31,9,129,19,100,193,38,246,233],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/26336"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=26336"}],"version-history":[{"count":5,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/26336\/revisions"}],"predecessor-version":[{"id":28328,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/26336\/revisions\/28328"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=26336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=26336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=26336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}