It wasn’t that long ago that the state of Nevada reported the death of its first COVID-19 victim in Carson City. What followed after was the state’s mandate to shut down all non-essential services for a period of 30 days in mid-March.
As you can imagine, all hotels, conventions, bars, and restaurants had to close down. However, the hardest hit was the closure of all casinos along the Vegas Strip, leaving thousands of workers in a state of turmoil.
Some, like Sin City’s Wynn Resorts, shut down its doors way before the order and promised to retain its workers with pay for up to two weeks since they could only do so much.
With the severed incomes and impact on the state economy, the Mayor, Carolyn Goodman, recently called for businesses to return to usual. Could this be a glimmer of hope during these dark times?
Sin City’s recovery meets opposing forces
In a recent interview, the Mayor pointed out that this wasn’t the state’s first encounter with a deadly virus. She also pointed out they have faced far many challenging obstacles, such as the financial crisis of 2008 that the country recently recovered from. However, what she didn’t know was that the greatest opposition would come from the governor of Nevada, Steve Sisolak.
Goodman’s fight against COVID-19 is limited to her authority. The real power lies with governor, Steve Sisolak, who issued a statement saying that the state would not be used as a control group. He prioritized the worker’s health and mentioned that they were not ready to open their doors just yet.
Another opposing force was the secretary-treasurer for Culinary Workers Union, Geoconda Argüello-Kline, who also called out the Mayor on her outrageous statements. Most workers were also quick to issue their concerns about returning to work in such unpredictable times.
While the matter was still under debate, the Nevada Gaming Control Board went on to issue their strict guidelines underlining the steps required for the casinos to re-open their doors.
Recovery on the Las Vegas strip said to take after Macau casinos
Nevada’s casino executives are now looking up to Macau, who recently re-opened casino doors to the public under strict restrictions. As the world’s largest gambling market, it surprisingly shut down its operations for less than a month. This is despite it being in close proximity to mainland China, where the virus allegedly hailed from. So, what measures did they undertake?
Through the local government, Macau casinos had to increase the number of testing kits at the entrances of all casinos. They also had their employees attest to their health by undergoing regular temperature checks. However, the biggest change of all had to reduce the number of gambling stations to enhance social distancing restrictions.
Can American casinos adopt the “Macau strategy”
The Western casinos were quick to pick on these guidelines and even came up with some of their own. It shouldn’t be too hard considering most western based casinos have more slots machines rather than tables. Their only strife would come on the use of face masks. Up to this day, many Americans still walk the streets unprotected. Enforcing this, as a rule, would play well on their part.
As a result, Las Vegas operators such as Wynn Resorts, MGM Resorts International, Caesars Entertainment Corp., as well as the Las Vegas Sands Corp all gave their input on re-opening their doors. Wynn Resorts CEO Matt Maddox explains his decision to retain his employees, dubbing it as a cheaper option. On the other hand, they’d have to fire the existing employees (which wouldn’t go well with the workers Union), hire and train workers, and hope that the standards would not be altered.
COVID affects other hospitality businesses
The talks again fell to Geoconda Argüello-Kline, who after serious reconsiderations, came to soften his stance with time. He reported that the deliberations would not only be limited to Vegas casinos on the Strip but also to potential small local businesses. He went on to urge the companies to enhance their cleaning techniques and allow special teams to bring in new chemicals.
Other measures to be undertaken included talks of reopening facilities such as hotels nearby. Since Las Vegas profits well of gambling tourism, they’d have to reconsider that too. Excellent proposals included limiting the number of rooms by only opening hotels up to a third of its capacity. Tourists would also have to take temperature tests and other mandatory coronavirus tests at the entrances of every outlet.
With the new measures in mind, it was up to the Nevada governor, Sisolak, to approve of the grand re-opening. However, he recently stated, “I don’t have an exact number, but I’ll take a lot of advice from our medical folks and determine what’s in the best interest of keeping all Nevadans safe.” As pressure mounted on him with all eyes glued to his statements, he also reassured Nevadans that the decision of when to reopen would not be a political decision.
Impact on reopening Las Vegas casinos
As the heated talks were underway, one major hotel-casino on the Las Vegas strip went ahead to formulate plans of the city’s reopening. Treasure Island rolled out its plans by undertaking reservations for tourists’ arrivals set as early as May 15th. They would, however, have to wait for the reopening plans to pass through the Gaming Control Board.
The underlying issue, however, was how the state and the country would pick it up. Whether strict laws are issued, there are many unscrupulous businesses that prioritize capitalizing on profits as opposed to looking after the health of their workers.
Vegas businesses wrestle with restrictions
I saw it right after the Nevada governor ordered the closure of all non-essential services when one strip club called Little Darlings defied these orders. Instead, they used the opportunity to increase their sales by advertising on their “coronavirus free” dancers, and nude hand sanitizer wrestling.
However, once the authorities closed in on their activities, they put up a sign, “Sorry, we’re clothed.” Other signs like the MGM Grand read, “Stay safe, stay strong, we look forward to welcoming you back soon,” with the #VegasStronger set into place.
Nonetheless, should the doors reopen, the state would report a decrease in the number of unemployment applications. With every passing week, unemployment filings rise with up to 41,000 new cases reported every week. Reopening the industry would see more people working.
What baffled me was the fact that with everything going around, the state considered reopening its casinos while schools remain closed. That goes to show the law’s interpretation of essential services provision.
Other impacts of COVID-19 in Vegas Nevada
The COVID-19 pandemic has not only affected the closure of casinos but the gaming industry as a whole. In 2019, the Las Vegas Strip recorded total revenue of $6 billion worth of gaming revenue. In comparison, Macau casinos made $36.6 billion over the same period.
As more confirmed positive cases spread, so did the decline of more visitors into the region. This, in turn, led to a decline in revenue generated during the first quota of the year. Tourist bans as a result of the closure of land-based casinos became more apparent in states that have since then embraced total lockdown.
Other major sporting events that got axed include all performing tours by various artists as well as major conventions and Trade shows. The most highlighted gatherings include the Consumer Electronics Show (CES), Specialty Equipment Market Association (SEMA), and The Shooting, Hunting, and Outdoor Trade Show (SHOT).
The state also stood in solidarity with the rest of the globe in its cancellation of all major sporting events. Major football leagues such as the NFL and English Premier League, the upcoming Olympics and Paralympics, cricket, motorsport, rugby union, boxing, and MMA all took a hit. Moreover, most tourists would drop their kids at Disneyland and drive off to Vegas only a day’s ride away. That is also not possible following the shutdown as well as state lockdown.
Some winners emerge from the pandemic
However, it’s not all negative with the COVID-19 pandemic. In regard to sports, most online gaming sites have recorded a 40% increase in the number of new registrations. This follows the subsequent increase in the number of unemployment cases. As a result, the online community has recorded more revenue generated during this crisis period as more people spend time indoors.
Moreover, there have also been reports on the nature trade-off paradigm shift. In Italy, the return of dolphins back to the canals was something that had not been seen for a while. Other countries also reported on a reduction in noise pollution rates as under the stay-at-home rule. With that same regard, the state of Nevada, which is home to 3.08 million residents as of 2019, has also seen a significant reduction in pollution.
Weighing the costs and benefits for a better future
That said, the reopening of businesses, as usual, opens up the possibilities of economic benefits. On the other hand, it also opens up the risk of spreading the virus to innocent Nevadans. One thing is for sure though; Las Vegas will either emerge stronger or weaker depending on how the situation is handled.
