LVS - Why Casino Stocks Dropped Again on Monday
Shares of casino stocks were pummeled on Monday as the U.S. response to the COVID-19 outbreak escalated. Shares lost as much as 20.1% for Las Vegas Sands (NYSE: LVS), 25.1% for MGM Resorts (NYSE: MGM), 19.4% at Wynn Resorts (NASDAQ: WYNN), 42.5% at Penn National (NASDAQ: PENN), 28.7% for Caesars Entertainment (NASDAQ: CZR), and 24.8% for Eldorado Resorts (NASDAQ: ERI).
At 1:45 p.m. EDT, shares of Las Vegas Sands were down 13%, MGM resorts was down 25.1%, Wynn Resorts was down 19.1%, Penn National was down 42.2%, Caesars Entertainment was down 25.7%, and Eldorado Resorts was down 15.2%.
The market's crash is a big reason shares are down, but the casino industry is outpacing the market's drop because most companies have decided to shut down operations this week. It's not certainty when casinos will open again, and when they do it's uncertain how many people will be back in hotel rooms and at gambling tables.