Nevada Casinos Fail To Reopen After COVID-19 Pandemic Shutdowns
Las Vegas Bankruptcy Lawyers Explain How COVID-19 Is Impacting Casinos & Employees In Nevada
Our Las Vegas Bankruptcy Attorneys discuss how the Covid-19 Pandemic is impacting Casinos and Employees throughout Nevada. With a surge in Nevada bankruptcies a real possibility, our Nevada Debt Relief team discusses economic issues surrounding the pandemic.
It has now been over a year since the spread of coronavirus prompted lawmakers to pass the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as well as shut down non-essential businesses. Nevada, and specifically Las Vegas, was one of the states hit the hardest economically by these shutdowns. Casinos, nightclubs, and other entertainment venues were closed for months, putting their employees out of work. Nevada saw employment rates as high as 33% during the pandemic’s peak. Restrictions have since loosened and things have started to return to normalcy. However, some casinos have yet to reopen since shutting down in compliance with state lockdown restrictions.
American Gaming Association Report
The American Gaming Association represents commercial casinos in the United States, which is a $240 billion industry. Unsurprisingly, a majority of the country’s casinos are in Nevada. It recently released a report detailing which casinos have not reopened since shuttering for state lockdowns.
Red Rock Resorts has kept four locations closed throughout the pandemic- Fiesta Rancho, Fiesta Henderson, Texas Station, and Palms. While Palms focuses on both tourists and locals, the other three locations are more local-oriented. The CEO of Red Rock Resorts, Frank Fertitta III, recently said these locations will not reopen until the company is sure that they can operate at a profit.
Main Street Station and Eastside Cannery are both owned by Boyd Gaming Corp. Boyd Corp. representatives have stated that Main Street Station will reopen in 2021 after tourism- especially from Hawaiian visitors- increases. The company doesn’t expect to release a date until the second half of 2021. Boyd Corp. has also stated that there isn’t enough tourism on the Boulder Strip to justify opening a second location there, so Eastside Cannery will remain closed for the time being.
In December 2020, Boyd Gaming Corp. sold its property, Eldorado Casino, to DeSimone Gaming. The casino, which is located on Water Street in Henderson, was renamed to The Pass Casino. DeSimone Gaming, which also owns Railroad Pass, plans to open The Pass Casino in April 2021.
Siegel Slots and Suites is a furnished apartment complex with its own casino. The casino at this community has yet to reopen. Agents of the company have made unconfirmed statements that it has been purchased by Dotty’s.
Cal-Nev-Ari Casino is located in the synonymous city near the borders of California and Arizona with just over 100 residents. The location is open because it also operates as a post office but its casino features have remained closed since state shutdowns. With operating capacities currently limited at 35%, the owner of Cal-Nev-Ari Casino has stated that it will be impossible to return a profit.
The Say When Casino in McDermitt has been in business since 1973. According to a Facebook post by the company from March 2020, the casino remains closed until further notice.
Harrah’s Reno permanently closed on March 17, 2020. Caesars Entertainment Inc. had previously announced plans to sell the casino to developer Chris Beavor in January 2020 for $50 million. The casino had been in operation for 83 years.
The Colorado Belle in Laughlin remains closed since March 2020 shutdowns. The Colorado Belle is owned by Golden Entertainment Inc. The company’s senior vice president of marketing, Brad Goldberg, has stated that the company has no plans yet to reopen The Colorado Belle.
Lakeside Inn and Casino is another casino that has officially closed for good during pandemic shutdowns. This Stateline casino had been favored by locals for 35 years.
Out of the casinos detailed in the American Gaming Association report, only two have officially made the decision to remain closed for good. While some have reported timeframes or specific reopening dates, others are simply waiting for restrictions to loosen and the economy to improve. Even when government restrictions loosen on casinos, there will likely be less visitors with disposable money for gambling. Only time will tell which casinos whose reopenings are still pending will open their doors again, or remain closed permanently. These closures only go to add to Nevada’s relatively high unemployment rate. Las Vegas has the highest metropolitan unemployment rate in the United States at 11.5%, based on a U.S. Bureau of Labor Statistics report released in January 2021.
Will This Translate To An Increase In Bankruptcy Filings In Nevada?
After the recession in 2008, bankruptcy filings increased by 33 percent. With unemployment rates still elevated about a year after the pandemic spread to the United States, it goes to reason that bankruptcy filings could similarly increase soon.
Causes Of Bankruptcy In Nevada
The number one cause of bankruptcy in the United States is medical debt. Medical treatments due to an illness or injury can be unaffordable for even those with health insurance coverage. Not only that, but a medical emergency and ensuing medical treatment can mean days, weeks, or even longer away from work.
Unemployment and underemployment are another leading cause of bankruptcy. When a person experiences a prolonged income reduction, they will often incur unsecured debt to cover expenses. These debts are usually dischargeable in bankruptcy.
Approximately half of marriages end in divorce, which is another common cause of bankruptcy. Transitioning to a single earner household, paying legal fees, and support payments can all cause someone to fall into debt.
Poor budgeting is another reason people file bankruptcy. Some people fall into debt because they don’t understand the terms of an agreement they sign. Others see their cost of living increase without a parallel increase in income. Consumer bankruptcy filers are required to take credit counseling courses, which will encourage better financial management in the future.
Contact Our Nevada Bankruptcy Lawyers
If you’re one of the many Nevada residents financially affected by the pandemic, our offices are here to help. Bankruptcy may be a clear path to a fresh financial start for you. You don’t have to make the decision alone. To learn more about your debt relief options, as well as our payment plans starting as low as $0 down, contact us today to schedule your free consultation.
Las Vegas Bankruptcy Lawyers