Gaming operators could ultimately seek bankruptcy protection if they continue to burn through their limited money after shuttering operations because of the coronavirus (COVID-19) pandemic, according to sector specialists. A recent Macquarie Research study report reveals US casino business now have as little as 5.2 months to as much as 14.3 months prior to lacking cash.
On the low end, Penn National Video gaming is burning through $6.4 million daily, having simply 5.2 months before lacking cash, the report said.
MGM Resorts International is burning about $14.4 million daily, with 9 months of cash available. Boyd Gaming Corp. is burning through about $3.2 million daily, with 9.4 months of money offered.
Century Gambling Establishments, Queen Casino & Resort, and Capacity Resorts have either $300,000 or $200,000 of cash burned through everyday. They have in between 5.8 and 14.3 months of cash readily available.
Golden Entertainment goes through $1 million daily, with 10.4 months of cash. Red Rock Resorts is burning through $1.7 million daily and has money to last the business for 13.8 months.
The Rev. Richard McGowan, a finance professor at Boston College who closely follows the gaming sector, validated these forecasts are a major issue.
” The gambling establishment industry was way over-leveraged, so the infection is attacking like a person who was jeopardized even before contracting the virus,” McGowan informed Casino.org.
” They [the forecasts] are probably quite accurate,” McGowan added. “The financial obligation to equity is public knowledge, and so, considered that they will have no capital, it is easy to forecast when they will run out of money.”