MGM Resorts (NYSE:MGM) fell 10% on Friday after reporting earnings yesterday that showed the casino operator swung to a $0.45-per-share adjusted loss in the first quarter, compared to a $0.14-per-share profit a year ago.
The coronavirus pandemic hit casinos hard, but as a global operator, MGM's casinos were also hurt by shutdowns worldwide as well as the decline of air travel and bookings at hotels. Revenue for MGM tumbled by nearly $1 billion, falling to $2.25 billion from $3.18 billion a year ago.
The gambling industry got another harsh blow today when it was reported casino revenue has all but evaporated in Macao, as gross gambling revenue plunged 97% in April with the entire industry generating just $65 million.
Despite having been open for business since the middle of February, the new restrictions China imposed on visits to the city, along with occasional flare ups of COVID-19, have dampened any sort of desire to gamble right now.
Even as casinos prepare to reopen here in the U.S., it's not likely there will be a quick rush by consumers to get back to the tables, and casino operators like MGM Resorts may find the road to recovery is a long one.