It might take as long as four years for the Las Vegas gaming industry to see a complete recovery from the pandemic, Fitch Ratings said.
The credit ratings agency released an update stating: “A full recovery to pre-pandemic levels is not expected until 2024. The Las Vegas Strip will experience the slowest recovery relative to other major gaming markets and segments globally.”
It concluded that aggregate gross gaming revenues are expected to decline by 60 percent year-on-year this year for casinos on the Las Vegas Strip.
Fitch estimates that aggregate gross gaming revenue losses will continue to decline by 50 percent and 20 percent for the next two years , respectively.
Michael Gaughan, the owner of South Point casino in Las Vegas, also fears Las Vegas could take years to recover.
He said: “I’ve been here since 1952 and this is probably the worst thing that’s ever happened to [Las Vegas].
“Strip hotels will have their work cut out for them. I do think that by the start of 2022, we should be back to completely normal. I just hope Las Vegas can get back to where it was. Everybody is trying to survive and keep as many working as they can.”
Fitch’s study found that other regional gaming industries in the United States have already started to recover because of “lower reliance on fly-in visitation, limited alternative entertainment options and government stimulus supporting consumer discretionary income.”