Caesars Entertainment plans to resume operations at some properties across its network when permitted by applicable government or tribal bodies.
In Las Vegas, Atlantic City, Council Bluffs and Lake Tahoe, Caesars plans to reopen properties in phases in line with anticipated business demand. The Company plans to reopen in these markets and increase staff capacity as well as amenities such as restaurants and live entertainment in line with consumer demand and guidance from public health authorities.Across its network, Caesars properties will encourage social distancing practices consistent with recommendations from domestic and international authorities, including federal and applicable state and local public health authorities, and implement other enhanced health and safety protocols.
“We look forward to welcoming our guests and team members back to our properties as soon as it is appropriate to do so,” said Tony Rodio, Chief Executive Officer of Caesars Entertainment. “We are implementing new protocols focused on the wellbeing of our team members, guests and communities to create environments with high standards of sanitisation and physical distancing practices. We are working closely with public health authorities, gaming regulators and infectious disease specialists to design our plan.”
Net revenues for the Las Vegas giant decreased $287m in the first quarter, primarily due to government or tribe-mandated property closures across its network. Performance in the first two months of the quarter was very strong with net revenue through February up 12 per cent year over year driven by increases in all verticals across all regions, highlighted by strength in Las Vegas and Indiana. However, revenue in the month of March was approximately half that of the prior year due to the temporary property closures. As a result, first quarter net revenues in Las Vegas and Other US declined year over year with decreases in gaming, hotel, food and beverage and other revenues. All Other net revenues decreased $18 million year over year, primarily due to lower gaming volumes in the UK as a result of property closures.
Mr. Rodio added: “While we posted our best operating performance since 2008 in the first two months of the quarter, circumstances changed dramatically in March as we temporarily shut-down all of our casino properties, consistent with directives from various governmental and tribal bodies. Our first quarter performance reflects the significant revenue declines we experienced as a result of the closures and stable year over year labor costs in March as we continued to provide pay and benefits to our team members for the first two weeks of the closure period.”
Caesars has developed a comprehensive health and safety program that enhances the Company’s existing standards and plans in these areas. The Company also intends to comply with recommended policies and procedures set by federal and applicable state and local public health authorities in each market in an effort to mitigate the spread of COVID-19.
The health and safety plan includes enhanced cleaning and sanitization of public spaces and guest rooms using CDC-recommended disinfectants and guidelines intended to limit the spread of the virus. All property employees will be trained on the new procedures and policies. The Company will instruct all team members to wash their hands for at least 20 seconds more frequently throughout their shift and signage throughout the properties will strongly encourage guests to do the same. Hand sanitizer will also be available throughout Caesars’ properties.
At all properties, the Company will facilitate social distancing practices, including by limiting table game spots and slot machines. Non-gaming offerings, including entertainment, restaurants and bars, will likely be reopened on a phased basis with limited capacity. Spaces where guests or employees queue, including check-in, elevator lobbies, taxi lines, employee break rooms and cafeterias, will be clearly marked for appropriate social distancing.
All team members will be provided with a mask and they will be required to wear a mask while at work. Some team members including housekeeping and security, may receive additional PPE such as gloves based on their role and if required applicable government or tribal bodies. The Company will also strongly encourage guests to wear masks, which will be provided by Caesars.
Caesars will implement a health screening program for all employees as part of the process of reopening properties and bringing team members back to our properties. In addition, through December 31, 2020, Caesars will provide team members with an additional 10 days of paid COVID Sick Days if they or someone in their household have been diagnosed with COVID-19.
All team members will be trained on COVID-19 and safety and disinfection protocols. Additional comprehensive training may be conducted for employees who work in certain areas such as housekeeping, F&B, maintenance, hotel operations, casino operations and security.