Treasure Island's COVID-19 insurance lawsuit against Affiliated FM Insurance Company has been dismissed by Nevada Federal Court Judge Cristina Silva on November 27, 2024.

The casino sought compensation under its "Communicable Disease" coverage for losses during the mandatory shutdown from March 17 to June 4, 2020. However, Judge Silva ruled that the policy only covers physical damage caused by contaminants, which Treasure Island failed to prove.

The ruling aligns with the Nevada Supreme Court case Starr Surplus Lines Ins. Co. v. Eighth Judicial Dist. Ct., which established that property insurers are not liable for COVID-19 claims without proof of physical property damage.

Most casino operators across the country, including MGM Resorts, Caesars Entertainment, Mohegan, and Cordish Companies, have lost similar lawsuits. Only two tribal casinos have received limited compensation:

• Foxwoods received $2 million (sought $76 million)
• Snoqualmie Indian Tribe received $100,000 (sought $150 million)

The case highlights the widespread difficulty businesses face in securing insurance payouts for COVID-19-related losses, as courts consistently rule that the virus did not cause direct physical damage to properties.

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