Caesars Entertainment disclosed on Tuesday in a form 8-K filing with the Securities and Exchange Commissions (SEC) that revenue at its Nevada properties that opened earlier this month dropped 56% to 58%.
The filing analyzed the days from the casino openings (June 4 and June 5) to June 10 as compared to the same period last year.
According to the SEC filing, operating income dropped around 110% to 120% and cash flow was off between 70% and 80%.
Nevada properties included Caesars Palace, the Flamingo, Harrah’s Las Vegas, Harrah’s Lake Tahoe and Harrah’s Laughlin.
Such a decline in revenue could be correlated to the 50% capacity rule and other implemented health and safety protocols set by gaming regulators that may be keeping some gamblers away.
This revenue decline comes after Caesars Entertainment announced it would open Paris Las Vegas June 18 because of an increased customer interest.
Caesars network of regional casinos in the South and Midwest did not see the same decline. The same filing showed revenue at six Harrah’s and Horseshoe casinos in Louisiana, Mississippi, Missouri and Iowa at either the same rate to up 2% through June 10 as compared to last year.
These casinos, some of which opened last month, saw a 60% to 70% increase in operating income and a 35% to 40% increase in cash flow.
Regional casinos outperforming the Las Vegas market could be related to the convenience of short car travel as compared to flights. The latter option has been heavily relied on for Las Vegas tourism.
Caesars Entertainment properties in Las Vegas that are not yet open could be affected by this SEC filing if their reopening is dependent on customer demand.
