Casinos ask Congress for emergency aid as coronavirus toll sweeps industry

An exterior view shows Luxor Hotel and Casino as the coronavirus continues to spread across the United States on Mar. 14, 2020 in Las Vegas, Nevada. An exterior view shows Luxor Hotel and Casino as the coronavirus continues to spread across the United States on Mar. 14, 2020 in Las Vegas, Nevada. Photo: Ethan Miller/Getty Images Photo: Ethan Miller/Getty Images Image 1 of / 3 Caption Close Casinos ask Congress for emergency aid as coronavirus toll sweeps industry 1 / 3 Back to Gallery

Casinos have joined the airline industry in asking Congress for emergency financial help as Las Vegas and other tourist destinations take a severe financial hit from the coronavirus outbreak.

The requested aid for the casino companies, raised by lobbyists in recent days, could come in the form of a comprehensive bailout package, similar to what lawmakers may provide to airlines, cruise companies and the hospitality industry. Other possibilities include direct cash payments, deferred taxes, or special bankruptcy protections, said two people with knowledge of the conversations, who were not authorized to speak publicly.

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One person said that on a strategy call Monday with members of the American Gaming Association, which represents the industry, a representative of Wynn Resorts raised the possibility of the industry seeking cash payments. Wynn Resorts was previously run by one of President Donald Trump's biggest political donors, Steve Wynn, though he resigned from his post in 2018. A Wynn Resorts representative did not respond to requests for comment.

The American Gaming Association issued a statement to The Washington Post on Monday, saying that with the $260 billion industry at a "near standstill," additional funds are needed to support casino companies and their employees.

"As state governments close casinos as a part of the urgent public health response to COVID-19, elected leaders should move just as urgently to support the workers and businesses who will bear the brunt of those effects," said the AGA, referring to the disease caused by the novel coronavirus. "Our immediate priorities are actions that provide liquidity to allow us to support employees."

A woman walks through a lightly trafficked Times Square in New York, Monday, March 16, 2020. Bars and restaurants will become takeout-only and businesses from movie theaters and casinos to gyms and beyond will be shuttered Monday night throughout New York, New Jersey and Connecticut because of the coronavirus, the states' governors said. less A woman walks through a lightly trafficked Times Square in New York, Monday, March 16, 2020. Bars and restaurants will become takeout-only and businesses from movie theaters and casinos to gyms and beyond will ... more Photo: Seth Wenig, AP Photo: Seth Wenig, AP Image 1 of / 65 Caption Close Photos: New York City's empty streets and landmarks amid coronavirus shutdown 1 / 65 Back to Gallery

The casino industry has been battered by shutdowns related to the coronavirus, with an increasing number of states demanding that all casinos, restaurants and bars close immediately to minimize person-to-person contact and reduce crowds.

Casinos in Atlantic City, New Jersey, and Maryland have been shut down. Wynn Resorts announced that it would close the Wynn Las Vegas and Encore properties, while MGM Resorts International said it would close all Las Vegas casino operations Monday, followed by closing the hotels Tuesday.

Some casinos in Las Vegas and across the country continue to operate despite recommendations from the U.S. Centers for Disease Control and Prevention that people reduce in-person contact and that events of 50 or more people be canceled.

The Trump administration has already moved to help the oil and gas industry by announcing plans to buy oil for the strategic petroleum reserve to buttress companies hit by a downturn in energy prices. Officials have also said the administration will push for special financial relief for the airline, cruise, and hospitality industries, which have been also hit hard by coronavirus.

A bipartisan package approved Friday by the House of Representatives and supported by Trump did not include bailouts for these companies, but assistance for specific industries, particularly the airlines, is expected in a third congressional package. Lawmakers have started to work on that package this week, according to congressional aides involved in deliberations, as the Senate takes up the legislation approved by the House.

The gambling industry supports 1.8 million jobs, according to the association, which could argue that thousands of low-wage workers would suffer if the companies aren't bolstered by the federal government. But extending financial aid to casinos may provoke more political opposition than efforts to support airlines or other travel industries, particularly as federal lawmakers face scrutiny over whether they are picking winners and losers in an economy broadly affected by the pandemic.

Casinos could also receive additional scrutiny given the close personal and professional ties that Trump, himself a former casino developer and owner, has to the industry. Wynn, a top GOP donor, has known Trump for years and was vice chairman of his inaugural committee. After Trump entered the White House, Wynn was named chairman of Republican Nation Committee's finance committee, before stepping down after sexual harassment allegations.

A spokesman for Wynn did not immediately return a request for comment.

Trump still owns a hotel with casino magnate Phil Ruffin, the Trump International Hotel Las Vegas. Although the hotel does not have a casino, Trump's company operates the property and it relies heavily on Las Vegas tourism for business.

Trump administration officials have sought to compare their efforts to the targeted help offered to the airline industry after it was hammered by the Sept. 11, 2001, terrorist attacks.

Treasury Secretary Steven Mnuchin, testifying to lawmakers this month, denied that the financial assistance being considered amounted to a "bailout." Among the ideas floated include deferring federal taxes for certain industries and providing zero- or low-interest loans to certain firms.

"This is not a bailout," Muchin told lawmakers. "This is considering providing certain things for certain industries."

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The Washington Post's Beth Reinhard contributed to this report.