Caesars Entertainment is suing its dozens of insurance providers for $2 billion, claiming it failed to provide coverage for lost profits stemming from the forced government shutdowns because of the pandemic.
The gaming giant filed a lawsuit Friday in the Clark County District Court in Las Vegas, but the lawsuit encompasses all 50 properties Caesars owns nationwide.
According to a report from CDC Gaming, Caesars said it purchased broad insurance protection against “all risk of physical loss or damage” that results in business interruption. It argues that the pandemic-induced shutdowns fall within that definition.
The move isn’t unique to Caesars. Billionaire Phil Ruffin, who owns Treasure Island and bought Circus Circus from MGM Resorts in 2019 for $825 million, sued AIG last summer for failing to provide coverage for the shutdown.
Ruffin’s lawsuit was similar to Caesars’ and argued that AIG sold his company an “all risks” policy that was designed to cover “direct physical loss or damage to insured property.” It said that the impacts of a virus was “not specifically excluded” from coverage, so it should be covered. The policy that was purchased for $1.6 million and covered up to $500 million in damages.
Ruffin’s company tried to submit a claim for a “covered” loss, but AIG denied the claim.
Nevada Gov. Steve Sisolak forced Silver State casinos to shutter in mid-March of 2020 and forced them to stay closed for nearly three months.