Sin City seems a little less sinful when you add safety protocols. People visit Las Vegas to have experiences that are perhaps a little more decadent than the ones they have in their normal lives. It's a city where people push their boundaries and indulge in freedoms they may not elsewhere.
That may mean seeing a risque show, having a few drinks, indulging in legal marijuana, or just putting a few bucks on your favorite team. Living it up in Las Vegas might be an indulgent meal at a famous restaurant or eating a dozen Krispy Kreme (DNUT) doughnuts fresh off the conveyor belt well after midnight.
Experiencing excess while on a Las Vegas vacation has different meanings for everyone, but nobody pictures their Vegas vacation involving wearing a mask (at least one that protects you from Covid).
Now, just in time for the Super Bowl, Nevada Gov. Steve Sisolak has dropped that state's indoor mask requirement. That's very good news for Caesars Entertainment (CZR) and MGM Resorts International (MGM), which together dominate the Las Vegas Strip.
Image source: Daniel Kline.
Las Vegas Ends Its Indoor Mask Rules
While the governor sets the rules for the state, Caesars, MGM and the other casino operators also fall under another authority. The Nevada Gaming Control Board, which governs the casinos, quickly followed the governor's actions, the Las Vegas Review-Journal reported.
“Pursuant to Gov. Sisolak’s Emergency Directive 052, effective immediately, individuals are no longer required to wear masks in public indoor settings in licensed gaming establishments, unless a local jurisdiction still imposes such a requirement,” the notice from Control Board Chairman Brin Gibson said. “If a licensee is subject to a local jurisdiction’s requirement relating to masks, the board expects full compliance from licensees.”
This change could literally lead to an immediate influx of visitors as the Super Bowl remains one of the biggest gambling weekends of the year. This would be welcome news for Caesars and MGM shareholders as both companies saw the Covid omicron variant surge nearly take out the Consumer Electronics Show.
Normally one of the biggest trade shows of the year, the 2022 CES saw omicron cause a lot of major companies, and nearly all media, to drop out of in-person attendance. That took an event that usually filled every major hotel on the Strip, downtown, and even off the Strip and left it at 30% of its normal attendance.
Could the End of Mask Mandates Bring a Las Vegas Resurgence?
MGM Chief Executive Bill Hornbuckle, speaking during the company's fourth-quarter earnings call, noted that the first quarter, or at least January, had suffered because of omicron and the pandemic. He made clear, however, that he expected a turnaround -- and the call happened a few days before the governor removed the mask mandate, though it did seem likely that it would happen.
"Cancellations are declining, and group lead volumes are normalizing. Forward hotel book has been stable over the past few weeks and are once again starting to outpace 2019 levels," he said.
"I expect that given positive Covid trends in Nevada, we will start to see meaningful loosening of Covid restrictions in the very, very near future, consistent with what we have seen in other states. Furthermore, our weekends have remained very strong."
That's a sentiment that the Strat General Manager Stephen Thayer echoed in his comments after Gov. Sisolak spoke, the Review-Journal reported. He noted that the change could result in an immediate surge of visits for the Super Bowl.
“Nobody wants to be the mask police and tell people to put it up when they’re having a good time,” Thayer said.
“This allows our employees to focus back on what we do best here in Las Vegas and here at The Strat, focusing on that customer experience and guest service.”
