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Nevada Casino Industry Negatively Impacted by Coronavirus Fears

Nevada Casino Industry Negatively Impacted by Coronavirus Fears
Coronavirus negatively impacting Nevada's casino industry

As reported by several news outlets, the value of shares in several of the most prominent Nevada-based casino operators dropped significantly following ongoing coronavirus fears. Some of these venues have seen dramatically reduced numbers in tourists and visitors which consequently affected the value of shares in such companies especially after the 5th of March. According to local news outlets, the appearance of the highly-contagious coronavirus strain in the state could cause further reductions in visitor numbers.

According to one recent report by the Reno Gazette Journal news outlet, The Silver State recorded its very first case of the coronavirus strain on the 5th of March. This news immediately caused dramatic drops in the individual shares’ prices in local casino operator Las Vegas Sands Corporation which went down to by around 4.1% to hit just $54.88. What is even more, this decline in the value of shares was even more prominent and serious for the Caesars Entertainment Corporation company.

Coronavirus Disease Latest Situation Report

According to the World Health Organization and its latest report on the highly-infectious coronavirus strain, over 105 000 cases of infection are confirmed globally with over 3600 cases being new cases. In China, over 81 000 individuals have been infected while the COVID-19 virus has claimed the lives of over 3100 individuals just in China. According to the latest report by the World Health Organization, eight new countries have reported their first cases of infection in the past twenty-four hours.

Over one hundred countries have confirmed cases while the global risk assessment in very high.  The 2019-2020 coronavirus outbreak is a serious, ongoing global outbreak of COVID-19 or coronavirus disease which is caused by SARS coronavirus 2 or severe acute respiratory syndrome coronavirus 2. The virus which was first identified in the Chinese city of Wuhan in late December of last year has been declared by world health organizations as a Public Health Emergency of International Concern.

Disappointing Revenue Figures for Nevada Casino Operators

As mentioned in the first section, the most recent decline in the value of shares in several of the most prominent Nevada-based casinos has also caused disappointing revenue figures. The decline was very prominent for the Caesars Entertainment Corporation company as its stock value dropped by around 5.69% to hit just $11.27. At the same time, the Boyd Gaming Corporation company suffered a more serious 9.3% drop.

Even more serious decrease in the value of shares was recorded by the Wynn Resorts Limited company whose shares’ value dropped by around 9.5% to reach $95.62. Another Nevada-based casino operator affected is MGM Resorts International which recorded a drop of 11.5% to hit around $20.60.

According to the Reno Gazette Journal news outlet, the Red Rock Resorts Incorporated company that is responsible for the Red Rock Casino Resort and Spa venue suffered the most prominent drop back on the 5th of March following its shares’ value dropping by around 13.8% to hit only $16.5.

The same news outlet also shared that casino operators in the state expect the casino market to remain rather volatile in the time to come due to the ongoing coronavirus outbreak. Commenting on the issues, UBS Global Wealth Management Chief Investment Officer Mark Haefele said that the unpredictive nature of the growing coronavirus threat both perceived and real is not quantifiable, at least not yet so the global response cannot be judged as insufficient or sufficient.

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