THE OUTLOOK Te Spanish government agreed to a fourth
extension of the State of Alarm on May 6 which will run until May 24 which will enable them to carry out restrictions including confinement measures with the aim of keeping new infections below one per cent. Initially this figure was around 35 per cent. A third line of credit valuing €24.5bn has also been activated to help companies and the self employed.
Spain’s de-escalation plan will run over eight weeks in two week increments and the move to the next phase will depend on each region’s increased or decreased rate of cases during each two week phase.
Te first two weeks saw certain businesses able to re-open their doors via an appointment system. Families could take walks and exercise within set time limits whilst the following two weeks saw bars and restaurants open with a 50 per cent capacity on their terraces only.
Hotel and tourist accommodations could also re-open to 50 per cent capacity. Te third phase includes regulations for bars and restaurants to open their indoor areas at a reduced capacity whilst cinemas/theatres and cultural places could also reopen. Family and friends can visit each other from May 11.
Te fourth phase is expected to see a gradual
easing of movement between regions in Spain. Schools will not resume fully until September and the aim is for ‘normal’ operations to continue by the end of June.
At the time of writing (May 8) there was no specific measures in place for gambling venues and these come under the Annex to RD 463/2020 suspended activities under the state of alarm. Gaming halls are expected to open by phase two and large ones by phase three depending on their capacity. Operators will be expected to re-organise their salons to accommodate social distancing regulations.
In mid April it was predicted that if Spain’s Covid-19 crisis continued until the end of May it would destroy 14,800 direct gambling jobs and 20,000 hospitality jobs. It is anticipated that the casinos, bingos, gaming arcades and slots will lose around 35 per cent of their income and this was the most favourable scenario suggested by Professor Jose Gomez Yañez.
Money used to back up ERTEs and a flailing economy will need to be found if Spain is to recover. It has been estimated that the cost of ERTEs will be around €700m by the end of this year and will easily continue then into 2021.
Te entertainment services sector (which includes the gambling industry) in Madrid alone is expecting a 15.5 per cent drop in employment
(loss of 30,000 jobs) after three months of confinement whilst the hospitality sector anticipates a 22.3 per cent drop.
Gambling is a sector with 10.5 million customers and high tax revenues. Te inactivity of the slots market in Spain has already cost the treasury an estimated €1.5m. Taxes have been reduced in a package of measures announced at the end of April to help businesses but this may not be enough.
Te sector, represented by various associations such as ANESAR, CEJ, COFAR, CEJUEGO, have joined together to present a plan to recover the activity of the gaming sector. Te have put forward some proposals to reopen the sector which will include: mandatory health and safety issues available to customers; the guarantee of social distancing for customers; implementation of hygiene and disinfectant measures; security and hygiene measures for cash handling and to facilitate different payment systems within establishments.
Te prediction is the Spanish gaming market will continue post-CV19 and consolidate with some acquisitions of operators and closure of others. Although digital gaming will play a leading role, the retail segment is not expected to disappear however, and some landbased operators will consider diversifying their business incorporating online offers.
NEWSWIRE / INTERACTIVE / MARKET DATA P37
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