As Las Vegas Reopens, Should Investors Bet On Casino Stocks Rebounding?
Thursday 28th May 2020
After over two months of unprecedented shutdowns due to the coronavirus pandemic, Las Vegas casinos have been given a green light to reopen on June 4, a move that could result in a major rebound for their beaten-down stocks.
With Vegas slated to reopen next week, casinos could be high-risk areas for the spread of coronavirus, former Food and Drug Administration Commissioner Dr. Scott Gottlieb told CNBC on Thursday. "You look at Las Vegas reopening its casinos... Those are the kinds of settings where I think you have more risk, where you have a lot of people crowding together," he warned.
Amid shutdowns caused by coronavirus, Nevada's unemployment rate surged to 28.2% -- the highest in the entire country -- last month, according to recent data from the Bureau of Labor Statistics. Unemployment surged, up from 6.9% in March, as the state was hard-hit by casino closures and a standstill in the tourism industry.
At the request of Gov. Sisolak, Nevada's Gaming Control Board published requirements for a "phased and incremental resumption of gaming operations." Those health and safety guidelines say casinos will be responsible for limiting occupancy to 50%, making masks available and checking the temperature of guests. It also requires staff to follow disinfection and social distancing protocols.
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