{"id":34312,"date":"2020-03-30T20:58:42","date_gmt":"2020-03-30T20:58:42","guid":{"rendered":"https:\/\/www.pokerscout.com\/?p=34312"},"modified":"2020-03-30T21:39:20","modified_gmt":"2020-03-30T21:39:20","slug":"casino-closures-devastate-gaming-industry-but-could-relief-be-on-the-way","status":"publish","type":"post","link":"https:\/\/www.pokerscout.com\/casino-closures-devastate-gaming-industry-but-could-relief-be-on-the-way\/","title":{"rendered":"Casino Closures Devastate Gaming Industry, But Could Relief Be On The Way?"},"content":{"rendered":"<p>As of Wednesday, March 25, all of the United State\u2019s <strong>465<\/strong> commercial casinos closed as a result of the <strong>coronavirus pandemic<\/strong>. An estimated <strong>649,000 casino employees<\/strong> are currently out of work due to the shutdown.<\/p>\n<p>It marks the first time in history all casinos in the country have closed.<\/p>\n<p>Also,<strong> 97%<\/strong> of the country\u2019s <strong>524<\/strong> tribal casinos have shuttered. The sixteen properties still open are mostly convenience locations.<\/p>\n<p>The <strong>American Gaming Association<\/strong>, a Washington, D.C.-based trade group that represents the U.S. casino industry, revealed the staggering economic toll. The closures cost:<\/p>\n<ul>\n<li><strong>$43.5 billion<\/strong> in economic activity if American casinos remain closed for the next two months.<\/li>\n<li><strong>$74 billion<\/strong> in total wages annually for workers.<\/li>\n<\/ul>\n<p>Pennsylvania\u2019s twelve brick-and-mortar casinos have been shuttered since March 17, and some went dark earlier. In Pennsylvania, the impact hits<strong> 16,033<\/strong> casino employees. Also,<strong> $1.066 billion<\/strong> in consumer spending is at stake for the Commonwealth should a two-month shutdown occur.\u00a0<u><\/u><\/p>\n<h2><span id=\"economic_impact_of_casino_closures\">Economic impact of casino closures<\/span><\/h2>\n<p>The impact of closures reverberates beyond the building\u2019s walls. The gaming industry is a key economic driver for <strong>350,000<\/strong> local small businesses and creates <strong>17,000<\/strong> gaming supplier jobs. Casinos are vital to local small businesses, delivering <strong>$52 billion<\/strong> annually in small business revenue to construction, manufacturing, retail, and wholesale firms.<\/p>\n<p>Casino gaming produces <strong>$41 billion<\/strong> in annual tax revenue and tribal revenue sharing nationwide. The money goes to essential support for local hospitals, first responders, and other public services.<\/p>\n<p>American Gaming Association President and CEO <strong>Bill Miller<\/strong> released the following statement on the economic toll the COVID-19 outbreak is having on the U.S. casino gaming industry:<\/p>\n<blockquote><p>\u201cThe impact on our employees, their families, and communities is staggering, and the implications extend far beyond the casino floor. Leading technology companies that supply the industry, and the nearly 350,000 small business employees that rely on gaming for their livelihood, are also feeling the devastating blow of this unprecedented public health crisis. The federal government must act swiftly and comprehensively to get America\u2019s hospitality employees, and the small businesses that support them, back to work.\u201d<\/p><\/blockquote>\n<h2><span id=\"how_long_might_pa_casinos_remain_shuttered\">How long might PA casinos remain shuttered?<\/span><\/h2>\n<p>Six Pennsylvania brick-and-mortar casinos were closed on<strong> March 16<\/strong>. Pennsylvania <strong>Governor Tom Wolf<\/strong> ordered a <strong>statewide shutdown<\/strong> of all non-essential businesses effective at midnight.<\/p>\n<p>After Wolf\u2019s press conference, the <strong>Pennsylvania Gaming Control Board<\/strong> put out the <strong>official notice<\/strong> for closure to the remaining six casinos.<\/p>\n<blockquote><p>\u201cWhile the closure of the casinos is temporary, there is no specific indication of when reopening will occur.\u201d<\/p><\/blockquote>\n<p>On March 29, <strong>President Donald Trump<\/strong> extended national social guidelines until April 30. The limit on large gatherings would signal that casinos in Pennsylvania, and the rest of the country, will remain closed until at least the end of April.<\/p>\n<p>On March 30, <strong>Gov. Tom Wolf<\/strong> announced schools and non-essential businesses in PA would be closed until further notice.<\/p>\n<blockquote><p>\u201cWe\u2019re going to keep our schools and businesses closed as long as we need to keep them closed to keep Pennsylvania safe,\u201d Wolf said. \u201cI know this isn\u2019t easy to hear\u2026 [but] if we want to save lives we must continue to distance ourselves from each other.\u201d<\/p><\/blockquote>\n<h2><span id=\"casino_employees_feel_the_effects\">Casino employees feel the effects<\/span><\/h2>\n<p>Whether or not casinos choose to <strong>pay employees<\/strong> while they are temporarily closed is on a property-by-property and company-by-company basis, says the AGA.<\/p>\n<p><strong>Casey Clark<\/strong>, senior vice president, strategic communications at the American Gaming Association said:<\/p>\n<blockquote><p>\u201cThis is an unprecedented blow that is going to ripple through the economy in Pennsylvania and every state that has gaming. Our council to casinos has been to prioritize the health and safety of customers and workers and follow the direction of local state and federal health experts. We are all learning as we go.\u201d<\/p><\/blockquote>\n<p>On March 27, PA-based Penn National announced companywide <strong>furloughs<\/strong> affecting approximately <strong>26,000 employees<\/strong> across the nation beginning April 1. In PA, that means employees of <strong>The Meadows<\/strong> and <strong>Hollywood Casino at Penn National Race Course<\/strong>.<\/p>\n<p>Information on unemployment or workers\u2019 compensation benefits is available at the <a href=\"https:\/\/www.uc.pa.gov\/Pages\/covid19.aspx\"><strong>Pennsylvania Department of Labor and Industry<\/strong> website<\/a>.<\/p>\n<h2><span id=\"online_casino_play_increases_in_pa\">Online casino play increases in PA<\/span><\/h2>\n<p>Despite the shutdown to brick-and-mortar casinos, Pennsylvania\u2019s <strong>eight<\/strong> online casinos remain operational and open for business. Pennsylvania is only <strong>one of four states<\/strong> that offer iGaming.<\/p>\n<p>PGCB spokesperson\u00a0<strong>Richard McGarvey<\/strong>\u00a0said:<\/p>\n<blockquote><p>\u201cTo this point the PGCB is not aware of any disruption of online services.\u201d<\/p><\/blockquote>\n<p>With all land-based casinos in New Jersey and Pennsylvania closed, online casinos have seen an increase in play.<\/p>\n<p><strong>Mattias Stetz<\/strong>, the C.O.O. of Rush Street Interactive, which operates <strong>PlaySugarHouse.com<\/strong> and <strong>BetRivers.com<\/strong> said:<\/p>\n<blockquote><p>\u201cWe\u2019ve seen quite a surge in online casino play. We expect that uptick to continue while Americans are being asked to stay at home looking for ways to be entertained.\u201d<\/p><\/blockquote>\n<h2><span id=\"poker_traffic_on_the_rise_too\">Poker traffic on the rise too<\/span><\/h2>\n<p><em>PlayPennysylvania<\/em> monitored the traffic at <strong>PokerStars PA<\/strong>, the state\u2019s only option for online poker, over the course of a week. Traffic more than doubled with numbers peaking at <strong>3,600<\/strong> seats filled. The following weekend saw even larger numbers. On March 29, traffic topped <strong>5,259<\/strong> seats filled.<\/p>\n<p>Sites like PokerStars PA are also launching tournament series for online poker players. The <strong>PA Spring Championship of Online Poker<\/strong> will run <strong>April 4-20<\/strong>. It will be their biggest series in the US yet, with <strong>$2 million<\/strong> in prize pool guarantees.<\/p>\n<p>Whether or not more states move to legalize <strong>iGaming<\/strong> in the wake of unprecedented temporary closures remains to be seen.<\/p>\n<p>Commented Clark:<\/p>\n<blockquote><p>\u201cIt\u2019s hard to predict how states will react because no one knows the full scope of what this is yet. I\u2019m not sure how it will factor in to legislation.<\/p><\/blockquote>\n<h2><span id=\"how_will_it_break_down_in_terms_of_taxes\">How will it break down in terms of taxes?<\/span><\/h2>\n<p>All forms of gaming \u2013 brick and mortar slots and table games, online casinos, sports betting, video gaming terminals and fantasy contests \u2013 generated nearly<a href=\"https:\/\/gamingcontrolboard.pa.gov\/?pr=897\"> <strong>$125 million in taxes<\/strong> in February<\/a>. A total of <strong>$103 million<\/strong> came from slot machine play.<\/p>\n<p>Since casinos are going to be closed for at least half of March and likely most of April, the numbers will plunge.<\/p>\n<p>Online casinos pulled in <strong>$6.7 million<\/strong> in taxes for Pennsylvania in February, a number that is expected to rise for March and April.<\/p>\n<h2><span id=\"coronavirus_relief_bill\">Coronavirus relief bill<\/span><\/h2>\n<p>The U.S. Senate approved a <strong>$2 trillion relief package<\/strong> on March 25. It is the <strong>largest<\/strong> rescue package in American history. The legislation includes:<\/p>\n<ul>\n<li>Direct payments to Americans<\/li>\n<li>Expansion of unemployment insurance<\/li>\n<li>Aid to large and small businesses<\/li>\n<li>\u201cSignificant\u201d funding for the health care industry<\/li>\n<\/ul>\n<p>About the U.S. Senate\u2019s passage of the <strong>CARES Act<\/strong>, Clark said:<\/p>\n<blockquote><p>\u201cAt AGA, our push has been to ensure the relief funding coming from the Federal government was inclusive for gaming companies to continue to support their employees through this hard time. We are fortunate there are some good provisions in there which allows it. It\u2019s important to conceptualize how gaming has been treated in Federal relief packages. Gaming has been explicitly excluded from economic assistance. We\u2019ve successfully ensured that gaming companies and the people who rely on them are going to receive some of the benefits of the relief package. There are key provisions that will allow employers to access liquidity to maintain some stability until it\u2019s safe to bring employees back to work.\u201d<\/p><\/blockquote>\n<h2><span id=\"continued_support_for_casinos_communities\">Continued support for casinos, communities<\/span><\/h2>\n<p>When asked if some might view it as a<strong> bailout<\/strong> for the casino industry, Clark pointed to the <strong>1.8 million<\/strong> Americans who rely on the gaming industry for employment.<\/p>\n<blockquote><p>\u201cWe are strong community partners, support small business and non-profits so I think long gone are the days are antiquated views of gaming. In communities we are active, people are aware of the positive impact casinos have. Any suggestion we aren\u2019t a part of the community or those jobs aren\u2019t worth saving are non-starters for me.\u201d<\/p><\/blockquote>\n<p>Miller added that the gaming industry\u2019s inclusion in the CARES Act shows the value of its <strong>contribution<\/strong> to the economy and community. However, it does not signal the end of the battle.<\/p>\n<blockquote><p>\u201cOur fight is not over. As the nation\u2019s response to the pandemic evolves, we know gaming businesses, workers, and their workers will continue to need support.\u201d<\/p><\/blockquote>\n<h2><span id=\"how_can_the_casino_industry_can_recover\">How can the casino industry can recover?<\/span><\/h2>\n<p>The shutdown to casinos, restaurants and most business in the hospitality industry have an immediate and long-term impact. <strong>Brookings<\/strong> lists <strong>Atlantic City<\/strong> and <strong>Las Vegas<\/strong> in the top-five <a href=\"https:\/\/www.brookings.edu\/blog\/the-avenue\/2020\/03\/17\/the-places-a-covid-19-recession-will-likely-hit-hardest\/\">places which are most vulnerable<\/a> to coronavirus-induced <strong>recession<\/strong>.<\/p>\n<p>A recently-released <strong>S&amp;P report<\/strong> gave <a href=\"https:\/\/www.inquirer.com\/health\/coronavirus\/coronavirus-casinos-report-20200324.html\">some hope to regional casinos<\/a> like the twelve located in Pennsylvania.<\/p>\n<p>It said in part:<\/p>\n<blockquote><p>\u201cWe believe regional gaming markets are more likely to recover faster than destination markets like Las Vegas because most customers are able to drive to those properties instead of fly, which reduces the cost of these trips and potential lingering travel fears associated with the virus.\u201d<\/p><\/blockquote>\n<p>Clark cited post-9\/11 as a metric on the recovery of casinos. He said people returned to a \u201cnew normal\u201d where people rallied behind the tourism industry.<\/p>\n<blockquote><p>\u201cMy expectations are that Americans will rally again behind their destinations of choice. We have proven to be a resilient industry. I think hospitality in general tends to attract increased investments from the community. When you think about gaming it\u2019s more than just the gaming floor. There is a full integration that happens at resorts such as hotel, meetings and conventions, restaurants, and retail. All of those sectors rebounding should enable our sector to get back on its feet quickly. As that happens, on the operations side, you\u2019ll see support happening on the suppliers side as well.\u201d<\/p><\/blockquote>\n<p>There is no doubt the economic effects of the current situation are vast. All will be hoping for a speedy recovery in life following social distancing.<\/p>\n<p>The post Casino Closures Devastate Gaming Industry, But Could Relief Be On The Way? appeared first on Play Pennsylvania.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As of Wednesday, March 25, all of the United State\u2019s 465 commercial casinos closed as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"link","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","vebbtech_seo_disable_yoast":false,"vebbtech_seo_hide_author":false,"vebbtech_seo_hide_date":false,"vebbtech_seo_hide_factchecker":false,"vebbtech_seo_fact_check_enabled":false,"vebbtech_seo_post_reviewer":0,"vebbtech_seo_post_review_date":"","footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-34312","1":"post","2":"type-post","3":"status-publish","4":"format-link","6":"category-news-category","7":"post_format-post-format-link"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Casino Closures Devastate Gaming Industry, But Could Relief Be On The Way? 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