Treasure Island's COVID-19 property insurance claim was dismissed by Nevada Federal Court Judge Cristina Silva on November 27, 2024, ruling in favor of Affiliated FM Insurance Company.

The casino sought compensation under its "Communicable Disease" coverage for losses during Nevada's mandatory casino closure from March 17 to June 4, 2020. However, the insurer refused payment, stating the policy only covered physical property damage.

Judge Silva's ruling cited the Nevada Supreme Court case Starr Surplus Lines Ins. Co. v. Eighth Judicial Dist. Ct., which established that COVID-19 claims require proof of physical property damage for coverage eligibility. The court found Treasure Island failed to demonstrate tangible harm to the property.

Key points from the ruling:

• The policy's contamination exclusion only covers physical damage caused by contaminants
• COVID-19's presence alone doesn't constitute physical loss or damage
• The case aligns with similar rulings nationwide against casino operators

Notable exceptions to casino COVID-19 insurance cases:

• Foxwoods Resort received $2 million (sought $76 million)
• Snoqualmie Casino awarded $100,000 (sought $150 million)

Other major casino operators including MGM Resorts, Caesars Entertainment, Mohegan, and Cordish Companies have similarly lost their COVID-19 insurance claims across various jurisdictions.

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