Caesars Entertainment’s Reports 58% Fall in Turnover in Nevada

Caesars Entertainment’s Reports 58% Fall in Turnover in Nevada

Casino operating giant Caesars Entertainment recently said that revenue from its Nevada properties has fallen by over 50% after reopening on a yearly basis. However, the company experienced small top-line growth at regional properties.

Silver State turnover reduce

In a recent form 8-K filing with the SEC, Caesars said that its turnover at the Silver State has slumped 56% to 58% through June 10, compared to a similar period in 2019. The operator’s properties reopened recently after a two-month-long shutdown ordered because of the coronavirus pandemic. The company’s four properties in Nevada reopened on June 4 while another one opened on June 5. The operator has a dozen gaming properties spread across the state.

Caesars Entertainment’s Reports 58% Fall in Turnover in Nevada

The fall in revenue was because of the restrictive guidelines by the regulators because of the COVID-19 pandemic. The state has capped the number of players on blackjack stations to three and on craps tables to six. Poker and roulette tables can only have four players at a time. The operating income for the properties that reopened during the period declined by about 110% to 120% compared to a similar period last year.

Its reopened casinos include Harrah’s Laughlin, Harrah’s Lake Tahoe, and Caesars Palace, the Flamingo and Harrah’s on the Vegas Strip. Paris Las Vegas is expected to open on June 18.

Regionals still strong

Caesars has one of the largest networks of regional casinos in the US and its portfolio of properties in the Southern States like Mississippi and Louisiana is helping it. Its regional venues like Horseshoe Tunica, Horseshoe Council Bluffs, Harrah’s North Kansas City, Harrah’s Gulf Coast, Harrah’s Bossier City, Harrah’s Louisiana Downs, etc. are all better placed for initial phases of the reopening. Some of these properties reopened in May as well.

The operator suggests that some of their revenues are flat while some are higher by up to 2%. Operating income has increased by 60% to 70% on a yearly basis. The company’s EBITDA also increased by 35% to 40%. It also said that margins at the regional venues have increased by 1,000 basis points while in Nevada, it has increased by 3,4000 basis points.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.

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