Capacity restrictions inside Nevada’s casino industry will be loosened starting Monday, with gaming floors increased to 35% customer volume. Casinos could move to 50% capacity a month later under a new phased timeline plan announced by the state’s governor Thursday.
Nevada’s gaming market, which has been beleaguered by a 25% capacity limitation instituted in late November, could return to customer volume levels not seen since last summer by May 1. At that time, Gov. Steve Sisolak hopes to turn over control of the state’s COVID-19 mitigation efforts to local counties and cities.
Casino operators, however, will rely on the advice of state gaming regulators on future capacity increases and the reopening of other aspects of their businesses.
Nevada Gov. Steve Sisolak
“The Gaming Control Board will make that call,” Sisolak said during a virtual press conference. “The Board and the Gaming Commission ultimately have authority over any licensed properties.”
Sisolak, who was in Carson City, said he expects the local government leaders will work closely with the Gaming Control Board.
The governor also reiterated his strategy he announced last month that prioritized Nevada’s frontline casino and hospitality employees as essential workers and moved the group up in the state’s timeline to receive a COVID-19 vaccination. However, it’s still unclear where the workforce will fall in the current vaccination schedule.
Sisolak said Nevada is one of the few states to prioritize hospitality workers for the vaccine. He views the move as part of reviving Nevada’s gaming industry, the state’s primary economic engine.
“It’s important everyone that has a face-to-face interaction with one of our tourists gets a vaccine,” Sisolak said. “It protects our workers and residents and I want everyone coming here to know this is the safest place for a vacation.”
Nevada has so far given out more than 307,000 first doses of the COVID-19 vaccine and more than 82,000 second doses.
The loosening of Nevada’s statewide “pause” that began at the end of November and was twice extended, comes as the state’s daily new case rate of COVID-19 has dropped significantly, from a high of 2,709 average daily cases in early December to the current 14-day average of 650 daily new cases.
The state’s positivity rate, which tracks the percentage of people who have tested positive for COVID-19, dropped to 14.3% Thursday. The rate has been falling steadily since peaking at 21.7 percent on Jan. 13.
The new timeline allows a multitude of businesses, including casinos, bars, and restaurants – as well as bars and restaurants inside gaming properties – to move beyond the 25% capacity that was implemented in November. Casinos will continue to operate under the COVID-19 health and safety guidelines and cleaning protocols implemented by state gaming regulators last June.
The capacity increases will also take place in Nevada’s tavern industry, which operates the bulk of the state’s restricted gaming operations – locations with 15 or fewer slot machines that cater primarily to local residents.
Under the new timeline, public gatherings that were limited to 50 people can go to 100 individuals or 35% fire code capacity starting Monday. The number jumps to 250 individuals or 50% of fire code capacity on March 15.
County governments and cities would be allowed to set capacity limits starting May 1.
“The goal of this plan is to avoid a scenario where I have to come before all of you again and pause our efforts,” Sisolak said. “I believe this plan can work, but we must all invest in making it successful.”
In his prepared remarks, Sisolak implored local elected leaders “to talk directly to your neighbors about the importance of getting the next 75 days right so we can transition to local COVID management.”
Nevada’s casino industry suffered through a 78-day shutdown that ended on June 4. But the state’s tourism market has been slow to return due to lack of airline travel and canceled conventions and meetings in Las Vegas.
Statewide, gaming revenues declined 34.6% in 2020 to $7.87 billion, the lowest overall total since 1997. Las Vegas Strip gaming revenues declined 43.7% to $3.73 billion, the lowest 12-month figure since 1996.
Gaming commentary
Casino company leaders, speaking this week on fourth quarter conference calls with analysts, hinted at the governor loosening the capacity restrictions, which could allow resorts to expand their operations.
On MGM Resorts International’s call Wednesday, CEO Bill Hornbuckle expressed hope Sisolak would roll back on the “pause.” Hornbuckle was hopeful “something targeted towards March” would take place to bring casinos in line with capacity levels allowed in October.
“I’m hoping by end of spring, as we go into June, we’ll see yet another significant rollback,” Hornbuckle said.
He noted Las Vegas has several large conferences scheduled for June, which would be the first large gatherings in more than a year.
Red Rock Resorts Vice Chairman Lorenzo Fertitta made similar comments a day earlier.
“Hopefully with the fact that the numbers seem to be going in the right direction relative to COVID … that are monitored in the Las Vegas market, we’re hopeful in the near future, we will be able to return to higher occupancy levels in our facilities,” he said.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
