Gaming stocks part of Dow’s record spike
Shares rise $2tn as relief package passes to help boost casinos.
Share prices in several US casinos rose on Tuesday following a 2,100-point surge by the Dow on Wall Street, spurring confidence the industry will be part of the $2 trillion stimulus package passed by US lawmakers to help offset losses due to the COVID-19 pandemic.
According to CDC Reports, MGM Resorts International, which shuttered all of its 20 casinos across eight states, is bleeding $14.4 million every day due to zero cash flow while still fulfilling employee salaries, debt obligations among other expenses.
Penn National, with 41 casinos in 19 states, is going through $6.4 million a day. Eight other casino operators are burning through a combined $27.5 million a day due to similar circumstances.
However, despite nearly all casinos being shut for 30 days, there was optimism following the market bounce, which was its largest one-day surge since 1933.
MGM Resorts closed Tuesday up 33% to $12.18, Las Vegas Sands increased just over 3% to $44.84, and Penn was up 35% to $13.21.
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