Treasure Island's property insurance claim related to COVID-19 closures was dismissed by Nevada Federal Court Judge Cristina Silva on November 27, 2024. The casino sought compensation from Affiliated FM Insurance Company for losses during the mandatory shutdown period of March-June 2020.

The key points of the ruling:

• Treasure Island argued their policy's "Communicable Disease" provision should cover pandemic-related losses
• Affiliated FM refused payment, stating coverage required physical property damage
• Judge Silva cited the Nevada Supreme Court's Starr Surplus Lines precedent, which established COVID-19 did not constitute physical damage
• The policy's contamination exclusion only covered tangible physical damage from contaminants

This ruling aligns with similar cases nationwide where property insurers prevailed against COVID-19 claims from casino operators including MGM Resorts, Caesars Entertainment, and others. Only two tribal casinos won partial settlements:

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

The case highlights the broader legal consensus that business interruption insurance typically requires physical property damage, which courts have consistently ruled the COVID-19 virus did not cause.

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