The novel coronavirus outbreak has been dominating the
news, posing one challenge after another ahead of countries and their
economies. Casinos and gambling establishments across the United States have
been faced with the same qualms as most entertainment industries out there, and
the
forecasts have been dispiriting.
Estimated 11% of the global gambling market will be
lost, forecasts estimate, although these numbers could quickly start taking on
far more serious numbers. Global gambling gross win timeline has fallen to $421
billion as of last Friday, making for a rather subdued year altogether.
While analysts have worried that 2019 had been a slow
year, 2020 will completely upend expectations and usher in an economic gloom
that would take years to overcome. Interestingly, the Asia-Pacific region will
possibly be the first to recuperate, as China has already brought the cases of
COVID-19 infected patients under control and South Korea and Japan are showing
headway.
Macau has opened up back for business after a two-week
hiatus occasioned by the rapid spread of the virus in the administrative
region.
AGA Warns Casino Shutdown Could Cost up to $43.5 Billion
With the United States preparing to batten down the
hatches, the
casino industry could damage the economy by up to
$43.5 billion, the result of a widespread shutdown that would send market
scares across the state.
As of last week, 95% of all commercial casinos had
closed and 76% of tribal operators had joined them last week, though these
numbers are now closer to 100%. Estimated $74 billion in total annual wagers
might be at risk with 616,000 employees or 98% of the gaming workforce affected
by the rapid changes and the shutdown. Commenting on the issue, AGA executives
had this to say:
“The impact
to gaming businesses goes beyond the casino floor. It creates deep uncertainty
impacting nearly two million Americans whose jobs are supported by gaming and
disproportionately affects the operations of the entire hospitality industry.”
AGA similarly urged the federal government to seek and
offer aid to the casino sector, an appeal that will most likely fall on deaf
ears given the state of country-wide emergency that is shaping up with 30% of
all workers expected to lose their jobs.
Las Vegas Start a Charitable Fund for Pandemic Response
With Nevada shutting down its casinos that has not
stopped the big brands from pursuing fresh opportunities to aid the embattled
Silver State. Casinos in Las Vegas are now sorting out through their stock
rooms offering food to food banks in the areas and making every little count.
The move has been backed by a number of prominent
establishments, including Caesars Entertainment, Las Vegas Sands, Wynn Resorts,
Station Casinos, and Boyd Gaming, and naturally MGM Resorts.
Meanwhile, the Las Vegas Sands also hasn’t hesitated
to donate $250,000 to three area charities, trying to soften the oncoming blow
that 30 days of casino lights-out would usher in.
Las Vegas’ Hotels and Casinos Prepare to House COVID-19 Patients
With nobody really in the know which way the COVID-19
pandemic is going to go – although WHO doesn’t forecast anything good – Las
Vegas could actually turn into a makeshift hospital. There are over 150,000
hotel rooms currently in the city, which makes for an ideal accommodation, not
least because of the ability to self-isolate infected patients.
While casinos would not do, despite their spacious
floors, hotel rooms could provide infected individuals with enough comfort and
a suitable space, and not least – a place to keep COVID-19 at check.
LVS, MGM Resorts, Wynn Resorts Rated with Negative Credit Outlook
Las Vegas Sands (NYSE:LVS), MGM Resorts International
(NYSE:LVS), and Wynn Resorts (NASDAQ:WYNN) are among the companies which
Standard & Poor’s has targeted with a negative outlook by the rating
agency.
The real danger is to have a number of companies,
including the aforementioned casino giants, downgraded to a non-investment
status, reflecting on the global economic danger that the world faces – not
only within casino gambling.
Revenue will naturally continue to fall, but the real
nerve-biting results will come in April and May when casinos are expected to
turn no revenue whatsoever. Not all is lost though.
Gambling companies will be able to save up on gaming
taxes and marketing expenses, of course, the utility bills would fall and
paying reduced wages to staff or putting them on unpaid
leave – where legally justified – would help them weather
the immediate storm.
Yet, that is hardly enough to turn any good results
any time soon. COVID-19 is only at the beginning of its spreading in the United
States, with the numbers of infected reaching 43,000 as of the moment of
reporting.
West Virginia’s Jim Justice Warns Bingo Halls Might Be Spreading COVID-19
West Virginia is in its own pickle. Coronavirus has
not steered cleared of the state which has begun reporting cases. Gov. Jim Justice
has hurried to caution the population that bingo halls might be in the root of
the cause.
Gov. Justice also urged residents to avoid public
spaces, non-essential
gatherings, and limit travel as much as they can. Effectively,
he has urged residents to stay home to help West Virginia get ahead of
COVID-19.
However long shopping lines and queuing up for
last-minute panic buying has proven widespread across the United States. One
specific danger Gov. Justice cited was bingo halls. He said that the state was
aware of the setting in which bingo halls operated and that was considered
unsafe given the necessary health standards the public needs to uphold to curb
the spread of COVID-19.
A shutdown of the WV casino and gambling industry
would be costly, of course. By one estimate estimated $50 million could be lost
in revenue if video lottery terminals (VLTs) are shut down.
Viable palliative would be the existence of an iGaming
network. However, given the circumstances, there are only a handful of states
that offer online gaming, including New Jersey, Delaware and Pennsylvania.
With sports betting coming to a halt nationwide
because of the COVID-19 pandemic, things for the gambling sector don’t look
promising.
Kevin was raised on sports since a young teen and following a (fortunate) injury pursued new hobbies in table games such as Blackjack and Poker. Since 2009 Kevin has been writing for casino sites for various big names in the industry and CasinoSites.us is but one of his latest passion projects.