Casino Operators May need Bankruptcy Protection
Recently updated on April 7th, 2020
While most of the world stands still because of the Coronavirus pandemic. Public Recreational places like US Casinos and Hotels are bearing the brunt of social distancing guidelines. At the moment Americans are officially quarantined by orders from the government. Businesses that don’t offer essential services to start to suffer. For Businesses, the lockdown started way before it became an official government order. This is because of the social distance precaution. COVID-19, the highly infectious disease was discovered in late 2019 in China. At the time, Americans had no idea that it would eventually end up being in their backyard.
Unfortunately, American coronavirus cases grow exponentially every day.
Running out of Money
A study done by Macquarie Research institute found that some casinos only have six months worth of operation. This is no surprise as casinos rely heavily on footprint profit. They make money in a variety of ways. Many people will enter the doors of a casino and even if they aren’t gamblers. They will end up spending money one way or another. Mega casinos have types of recreational facilities like restaurants and hotels. All of which are going. The daily maintenance can be a minimum of 5 million dollars a day. While in the Las Vegas strip prove to still be afloat in terms of cash flow.
Business Won’t Survive without Financial aid
These numbers suggest that many on the Las Vegas strip will need baling out in the months to come. To ensure there will be a continuation of the business after the pandemic passes. Experts say this a first for Las Vegas, and there has never been an incident that caused casinos to close its doors indefinitely. Bankruptcy protection will entail casinos get financial aid to help them keep their business.
To save money and mitigate costs. Gambling business can not operate normally. A few suggestions have been made to loosen up some cashflow. The first is to move casino operations from brick and mortar to virtual. Online casinos are going to absorb the entire industry. And for the most part, they have the best contemporary games. Players will have the alternative of great games.