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Caesars, MGM Resorts Tap Backup Loans as U.S. Casinos Close

  • Coronavirus has led some states to shut down gambling sites
  • Travel curbs also have hurt the companies’ prospects
    
Photographer: Anthony Kwan/Bloomberg
Updated on

Casino giants Caesars Entertainment Corp. and MGM Resorts International are drawing down their credit as they cope with coronavirus fallout, including shuttered casinos and what may be an extended slump for travel and entertainment.

Caesars said Monday that it would tap more than $1.15 billion from its revolving credit lines. Earlier, Bloomberg News reported that MGM is planning to draw down as much as $1.5 billion of its backup loans. The Las Vegas-based companies joined casino rivals such as Wynn Resorts Ltd. and Penn National Gaming Inc. in seeking to shore up their balance sheets as the global pandemic roils markets and forces closures.