Wynn Resorts, MGM and other casinos take big hits

Casino Stocks took a big hits following fears that the COVID-19 virus (Coronavirus) will spread in the United States. The fears were escalated after a patient was identified in California. Gaming stocks are shivering as investors are worried that the virus will find its way to the Las Vegas Strip sooner rather than later. 

The identified California patient resides in Solano County, close to an Air Force Base used as quarantine zone for travelers returning from Asia and other affected countries. The Covid-19 virus which originated from China, has quickly spread to other Asian countries, Europe and Africa. Market participants reacting to the virus outbreak, and as such, the S&P 500 is on track to record its worst weekly personal in the last couple of years. 

Concerns Grows 

The world is reacting to the virus outbreak. Lots of events, activities, and conventions have been cancelled following the growth of the outbreak. Because of this, some investors are wary that such cancelation would find their way into Las Vegas. The fear a partial or total closure of casinos will be the order of the day. 

“Between cruise ships being quarantined, the Tokyo marathon being cancelled, study abroad programs refunded, and the scare that the Tokyo Olympics could be affected, the Coronavirus has the travel industry on edge. Bookings are down, flights and trips are being cancelled, and the market is suffering for it,” said HotelPlanner.com CEO Bruce Rosenberg

The past month has seen the postponement of the Mobile World Congress, as well as Facebook’s Global Marketing Summit. Overall, several conferences have been postponed or cancelled due to the novel Covid-19 virus.