Las Vegas Casinos Reopen With $30-a-Night Rooms on the Strip

(Bloomberg) -- Casinos in Nevada began welcoming customers again on Thursday following a nearly three-month shutdown due to the coronavirus, with hand-washing stations interspersed among slot machines.

Some properties began letting guests in right after midnight. Videos posted online showed a line of more than 100 people tumbling into the D Las Vegas, a casino located downtown. Dancers wearing masks could also be seen amid fairly busy tables.

Most of the major operators on the Las Vegas Strip opened at around 10 a.m. local time. Caesars Entertainment Corp. welcomed guests into Caesars Palace for a ribbon-cutting with management. It was nearly 100 degrees outside during the day, which probably limited the crowds lining up.

Hotel deals could be found, even though the large casino companies weren't opening all of their properties and the Nevada Gaming Control Board said resorts should operate at no more than 50% of capacity on their gambling floors.

The website Vegas.com was offering rooms at the Flamingo, one of just three casinos that Caesars opened, for $45 a night on Thursday. New York-New York, a budget offering from MGM Resorts International, was advertising rooms for $30, while at Bellagio, its higher-end property, the rate was $139.

June is typically a slow month in Las Vegas, but the average daily room rate a year ago on the Strip was $129.

Slow Recovery

“I don't recall seeing rates this low since right after the financial crisis, when everybody went down-market,” said Brian Egger, an analyst with Bloomberg Intelligence. The rates, along with a near-term lack of convention business, suggest a slow recovery, he said.

The prices also suggests current visitors may be locals rather than guests flying in or driving from nearby states.

Face masks aren't required in Nevada. While much of the casino staff appeared to be wearing such coverings, few guests seemed to be doing so, even though some properties offered free masks and gloves to patrons.

Some casinos opened with sneeze guards around their card tables. “Welcome back to escape,” Caesars said on its website. The company also offered discounts to nurses and first responders. Showrooms remain closed.

David Farahi, chief operating officer of Monarch Casino & Resort Inc., said there was a small line outside of his company's Atlantis Casino in Reno, Nevada, on Thursday morning. Room rates, at $59 for Thursday night, were “certainly light,” but the company will be reaching out more to customers in its database.

“We have to build demand,” he said.

Back in Las Vegas, John Flynn, vice president of administration at MGM, said he could already see guests enjoying drinks by the pool on Thursday morning.

The company is targeting just 30% occupancy over the next couple of weeks at the three resorts it has reopened. To address health concerns, MGM brought in more electronic table games that don't involve live dealers, and removed some slot machines to make room for hand-washing stations, so guests don't have to walk to the bathroom. The company also waived parking fees.

“This is a great time to visit Vegas,” Flynn said. “The crowds will be maybe 50% of the size. You're going to have access to all the great offerings we've had before. The prices are really low. We've got free parking. Gas prices are low, too.”