Treasure Island's Las Vegas Strip casino has lost its federal lawsuit seeking COVID-19 insurance compensation from Affiliated FM Insurance Company. The ruling was delivered by U.S. District Court Judge Cristina Silva on November 27, 2024.

The casino argued its property insurance included "Communicable Disease" coverage for cleanup and removal costs. However, Affiliated FM refused payment, stating the policy only covered physical property damage.

Key points of the ruling:

• Judge Silva cited the contamination exclusion clause requiring physical damage for coverage
• The ruling aligned with Nevada Supreme Court's Starr Surplus Lines case
• The presence of COVID-19 did not constitute "material, tangible harm" to property

The decision follows a broader pattern of insurers winning similar cases nationwide. Notable casino operators who lost similar suits include:

• MGM Resorts
• Caesars Entertainment
• Mohegan
• Cordish Companies

Only two tribal casinos received partial compensation:

• Foxwoods: Awarded $2 million (sought $76 million)
• Snoqualmie Casino: Received $100,000 (sought $150 million)

The case originated from Nevada's mandatory casino closure period (March 17 - June 4, 2020) under then-Governor Steve Sisolak's order. Treasure Island, owned by billionaire Phil Ruffin, filed the lawsuit in May 2020.

Note: This rewrite maintains all essential information while making it more concise and focused on the key legal points and outcomes.

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