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Casino giant Caesars Entertainment Inc. is estimating its losses due to the coronavirus pandemic in 2020 at more than $ 2 billion, and is suing a long list of insurers that it accuses of refusing to pay its business interruption costs.
In a Nevada state court case, Caesars appoints 60 insurers that it says are rejecting its claims to recover losses of less than about $ 3.4 billion in insurance policies it had for catastrophic business losses.
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A Caesars spokeswoman, Chelsea Ryder, said on Thursday that the company had no further comment on the lawsuit.
Representatives from most insurance companies did not immediately respond to e-mail messages about breach of contract and the unfair claims case filed on March 19 at Clark County District Court.
Robyn Ziegler, a spokesman for insurance company Zurich NA, said it was not his company’s practice to comment on litigation.
Allianz Global Corporate & Specialty said it is evaluating claims from companies worldwide and will honor claims related to COVID-19 “when they are part of our policies and coverage is clear”.
“However, many companies will not have purchased coverage that would allow them to claim their COVID-19 pandemic loss insurance,” the document said.
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Caesars was acquired last July by Eldorado Resorts Inc., based in Reno, becoming the largest casino owner in the world. It maintained the name Caesars Entertainment and operates more than 50 casinos in 14 U.S. states, including eight resorts on the Las Vegas Strip.
Her lawyers said in the civil suit that she paid $ 25 million in premiums to companies ranging in the name of Ace American Insurance to XL Insurance.
“Notably, insurers have made it clear that they are not willing to take the risks posed by a pandemic going forward,” the suit said. “This new language of exclusion … confirms that this risk has been covered and not excluded in the policies for all the risks in question in this process.”
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The lawsuit was first reported on Monday by the Las Vegas Review-Journal, which noted that it was not the first of its kind among Las Vegas casino operators.
Circus Circus, owned by Phil Ruffin, filed court documents to appeal a decision last month by US District Judge Jennifer Dorsey that dismissed a federal breach case opened last July against AIG Specialty Insurance Co.
Treasure Island casino, also owned by Ruffin, is suing Affiliated FM Insurance Co. for similar reasons. This case is pending in federal court in Las Vegas.
Casinos were among the many companies closed last year when the coronavirus pandemic became known in Nevada and other states where Caesars operates – Arizona, Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maryland, Mississippi, Missouri, New Jersey, Ohio and Pennsylvania.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| CZR | CAESARS ENTERTAINMENT | 86.94 | +4.04 | + 4.87% |
Caesars said in its filing that it laid off many of its 79,000 employees, but continued to pay them for up to six weeks and paid more than $ 16 million to employees who were unable to work because they or someone they came in contact with tested positive. for the virus.
The shows and conventions went dark, along with more than 65,000 slot machines, 3,400 table games and 47,000 hotel rooms. The company said it lost more than 110,000 daily guests.
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In a Security and Exchange Commission lawsuit for the fiscal year ending December 31, Caesars said the outbreak “affected our operations and caused an economic slowdown, widespread unemployment and an adverse impact on consumer sentiment”.
“We expect COVID-19 to continue to have a material impact on our business, financial condition, liquidity, operating results (including revenues and profitability) over a long period of time,” he said.