MGM Resorts (NYSE:MGM) is the biggest casino operator on the Las Vegas Strip, and though all of its resorts in the country are closed and those it has in China are suffering from dramatically lower visits due to the coronavirus pandemic, it announced it will not accept any of the money being made available in the $2.2 billion stimulus package signed by President Trump last week.
It will, however, consider accepting the federal loan guarantees the government is offering should the COVID-19 pandemic force the casino industry to remain closed for an extended period.
A financially secure business
MGM says the year got off to a strong start in the first two months of 2020, but the two-week closure of its resorts in Macau, the only place in China where it is legal to gamble, caused a significant financial impact.
In an SEC filing, the casino operator said it "has since incurred substantial operating losses in March and the Company does not expect to see a material improvement" because the severity of the pandemic and how long its properties will remain closed is unknown.
Yet MGM says that with $3.9 billion in cash on hand, it has sufficient financial resources and liquidity to allow it to navigate through the crisis without needing to take any stimulus money. Las Vegas Sands (NYSE:LVS), which faces similar constraints on its resort operations, though it generates most of its revenue from China, also says it won't be accepting any stimulus funds.