A Thursday research from funding agency SunTrust Robinson Humphrey discovered Las Vegas Strip room charges are persevering with to drop amid the virus outbreak. Analyst Barry Jonas expects regional operators can be affected by the outbreak as properly.
In accordance with the report, MGM room charges — serving as a proxy for Strip charges as a complete — are down 48 p.c the week of March 20 in comparison with charges listed Feb. 27.
When SunTrust checked out room charges on March 5, charges had been down solely 26 p.c that week.
“We are actually seeing sequential declines for late-March charges speed up,” Jonas mentioned.
Convention cancellations, a constructive COVID-19 case at the Mirage and rising shopper fears because the virus was upgraded to a worldwide pandemic might all be components within the value drops.
However the virus’ results possible transcend the Strip.
Whereas operators had been suggesting Strip and regional gaming developments had been secure, Jonas mentioned regional visitation will take a success as vacationers turn into cautious of publicity to giant crowds.
“This development (in regional casinos) is probably going additional pronounced given the at-risk older demographic is a key buyer,” he mentioned.
Moreover, whereas cell sports activities betting was initially considered low-risk, Jonas identified that NCAA match cancellations the NBA and NHL’s choices to droop their seasons will possible affect the trade.