A report compiled by Macquarie Research has revealed that large casino operators in Vegas only have cash reserves to last them a few months with each of them having been ordered to close their properties in Nevada.
The company at most risk from the Coronavirus lockdown is Penn National Gaming Inc, who, based on their current cash burn rate during lockdown will run out of cash reserves in just over 5 months.
MGM Resorts International have slightly higher cash reserves, but nevertheless they will run out of cash in 9 months with Boyd Gaming Corp having enough cash on hand to last them around 9 and a half months.
Golden Entertainment Inc. who have been on a spending spree of late, look set to burning through their cash reserves in just over 10 months and Red Rock Resorts Inc. appear to be the only casino operator that can weather the storm for over a year, as they have enough cash on hand based on their current burn rate to last almost 14 months.
Whilst President Trump is eager to get businesses back operating in time for Easter, there are going to be some massive knock-on effects of the Coronavirus lockdown, and even if that is something that can be achieved, many people are going to be very reluctant to travel to Vegas in the coming months.
Many airlines have stopped flying to the U.S. and the decision by most airlines to stop not only U.S. flights, but all international ones are unlikely to change for many non-U.S. airlines any time soon.
