Gaming Commission: casinos to remain closed until May 18

May 6, 2020 | G. Michael Dobbs
news@thereminder.com

SPRINGFGIELD – MGM Resorts International Acting CEO Bill Hornbuckle said in a quarterly earnings call on April 30 the casino giant is preparing for the reopening of its properties, and alluded to changes to ensure public health.

He said, “We are collaborating with public health officials, experts in epidemiology and biosafety and both state and federal governments to come up with a set of protocols that will help deliver a secure environment. These will include measures like physical distancing, stringent sanitation and cleanliness protocols, the provisions of PPE, crowd management, and more.

At its May 1, meeting the Massachusetts Gaming Commission voted to extend the closing of the state’s three casinos to May 18, the same date set by Gov. Charlie Baker for the rest of the state’s economic activities.

Hornbuckle said, “We’re also developing digital innovations for touch-less interactions across the guest experience to improve protection and create greater overall confidence in the hospitality environment and their overall experience. We will continue to be driven by data, by science and by public health guidelines as we evaluate and evolve our operating practices and guest interactions. This brings us to the second question, when will we able to reopen our domestic properties.”

Speaking about a timetable for reopening, he said, “Ultimately, the precise reopening dates depend on decisions by elected officials consulting with public health authorities. In MGM’s case, that means the governors of Nevada, New Jersey, Maryland, Michigan, Massachusetts, Mississippi, Ohio and New York. Due to various public health conditions in these states, we are preparing to open properties in phases.”

Hornbuckle also said, “The COVID-19 pandemic represents a tremendous challenge to the global economy, to society as a whole and of course to a company like ours, which exists to offer guests world-class entertainment and hospitality experiences. On an individual level, the suffering imposed by COVID-19 has been enormous.

“Our hearts go to all of those who have lost family members, friends and colleagues. We have also lost 11 of our own at MGM. We’re all extremely grateful to the medical personnel and first responders who are serving on the front-line of the pandemic and also like to recognize the MGM employees who are reporting to work every day and are essential to keeping our properties safe and secure.

“As you all know, in mid-March, we closed all of our U.S. properties. At that time, we began to take decisive measures to protect our business by maximizing liquidity and minimizing our cash out flows. In the past few weeks, we have cut our dividend, reduced our deferred nonessential spending, amended our credit agreement and raised 750 million in new bonds.

“The most difficult step however was to furlough nearly 63,000 employees. This was painful and it’s a hard decision to make, but we are actively preparing for the day and we can welcome them back. As a result of these actions and our real estate transactions, MGM has 4.6 billion of cash on its balance sheet, excluding MGM China, and MGP, an estimated domestic cash outflow of approximately $270 million per month while we are closed.

“During this international health crisis, we have focused on the safety of our employees and guests and in strengthening the committees in which we operate. This has been and continues to be our top priority. As such, we have committed to continue providing health benefits to our impacted employees and while difficult, this experience has again confirmed the strength of our values and our culture.

The company, our employees, and our partners collectively have raised 12.8 million for the employee emergency grant fund to provide relief for employees and immediate families in need. We’ve also given over 1 million in food and products to local communities, provided logistics for 250,000 COVID-19 test in Nevada and donated over 1 million units of PPE.

“MGM China has also made significant efforts to supporting the region to the crisis, including donating MOP 20 million or approximately $2.5 million to the Hubei Province and providing other means of support, PPE or otherwise to its local community.

“Although COVID-19 presents unique challenges, we are extremely well-positioned culturally, financially, and operationally to handle this crisis. Because of the strength and the actions we are now taking, we are poised to regain momentum as soon as the danger to public health lifts and we can begin to restore normal operations.”

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