Moody’s Investor Service, the bond credit rating company, believes Las Vegas faces a long road to recovery, despite the optimism created by the reopening of casinos.
In April, Moody’s projected US gaming EBITDA to fall 70% below 2019 levels within the next 12 months.
With Las Vegas casinos, as well as other regional properties through the US, now reopening, Moody’s still warns of the daunting journey ahead.
VP, senior analyst Adam McLaren said: “We expect the gaming sector's road to recovery will take several years, as it will need to overcome the drag from social distancing practices and high unemployment.
“With travel levels still suppressed across the country and the important convention business likely to be slow to ramp up, we anticipate it will take longer for Las Vegas operators to ramp up.
“We also expect leisure customers on a regional basis to come back first. As such, we continue to believe that Las Vegas strip operators’ revenue and profitability will lag regional casinos.”
