Las Vegas Stations Casinos Properties to Remain Closed as Tourism Continues to Slump

  • The Palms, Fiesta Rancho, Fiesta Henderson, and Texas Station will remain closed
  • These casinos rely mostly on 65+ and older visitors
  • Their reopening will be considered based on COVID-19 vaccine rollouts
  • Red Rock Resorts generated $1.2bn in revenues for 2020, a decrease of 36% from 2019
Fiesta Henderson casino
Station Casinos in the Las Vegas area, including the Palms, Fiesta Rancho, Fiesta Henderson, and Texas Station, will remain closed because of decreased tourism levels. [Image: Shutterstock.com]

Not reopening yet

Four Red Rock Resorts casinos in the Las Vegas area operating under the Station Casinos umbrella have been closed for almost 11 months because of the COVID-19 pandemic. In a recent conference call, CEO Frank Fertitta III said that the casinos would remain closed until the tourist market returns.

suffered a net loss of $174.5m in 2020

The company suffered a net loss of $174.5m in 2020 and is now looking toward 2021 in the hopes of recovery. Last year, the company’s casinos that did open saw an increase in younger players, but the capacity restrictions at the end of the year caused customers to stop visiting on a frequent basis.

Station Casinos have older customer base

During the conference call, Fertitta pointed out there are now more restrictions in place than when the casinos opened back up in June 2020. At the time of reopening, casinos could operate at 50% capacity. In November, that number was slashed to 25%, which has slowed services considerably.

The Palms, Fiesta Rancho, Fiesta Henderson, and Texas Station will not reopen any time soon. These casinos rely on an older customer base in the 65+ range. This age group is more at risk of COVID-19 infection and illness. The closed Station Casinos plan to review the rollout of vaccinations when considering reopening dates.

When the pandemic first became a problem in the United States, Red Rock Resorts laid off about 39% of its employees. The company provided payroll and health benefits to its full-time workforce during the shutdown.

COVID-19 financial impact

In 2020, the COVID-19 pandemic affected Red Rock Resorts significantly. Properties generated a total of $1.2bn in net revenues, a 36% decrease from 2019. In Las Vegas, net revenues for the fourth quarter came in at $316.2m, a considerable drop of $121.8 from 2019.

The company would finish 2020 with $49.6m in net income for the fourth quarter. This is a nice increase from the same time the previous year when they recorded only $6.8m in earnings. 

Nevada hit record lows in 2020

Red Rock’s losses are just a small portion of how the COVID-19 pandemic affected the economy of Nevada. Data reports issued by the Nevada Gaming Control Board showed December 2020 revenues were the lowest monthly figures for the state since August 1997. Only $683.7m was generated, which is a decrease of 35% from the same month in 2019.

For the year, Nevada casinos generated $7.87bn in revenue, a 35% decline year-on-year. It was the largest decrease for the state since 1996.

While 2020 was a struggle, the American Gaming Association is optimistic that 2021 will be a better year. The AGA feels that the COVID-19 vaccine will help bettors feel more at ease traveling to casinos this year. Tourism levels need to increase for the state to see any form of recovery.