Stateside
Sharon Harris reviews the situation in North America
I
had plenty of material for this month, but we all know the coronavirus has taken up everyone’s attention. Who could imagine that microscopic cells could be so lethal as to upend billions of people worldwide? This is the worst kind of power. My March column about leadership was timely. All 50
governors, along with the White House, must enact practical solutions. Like dozens of others, here in New Jersey, Governor Phil Murphy ordered a “shelter at home’ shutdown mandate except for “essential services.” As he included casinos and racetracks in the closures,
Murphy offered both good and bad news. Online gaming is available 24/7 for those 21 or over who are physically located within New Jersey. The bad news is for sports betting since all events are canceled. Murphy provides daily television and radio updates.
North Jersey, which borders New York in multiple spots and is 100 miles from my house, is a hot spot. I wonder if Internet gaming revenues are increasing, holding steady or decreasing during this shutdown. Although people want some excitement while at home, their finances remain uncertain. Will there be a direct correlation between the length of this pandemic and their willingness to place bets? That is yet another unknown. In-person commercial, tribal and tavern gaming is
virtually shut down nationwide. There may be a few exceptions, but I don’t know them. Nevada’s casinos are closed. My niece, who lives in Las
Vegas, says most of the neon lights are off on the Strip. Nevada probably relies on gaming and tourism more than almost any other state. What does the future hold for them? Some analysts predict at least a year just to
10 APRIL 2020
recoup their losses, but only if their doors open soon. The larger gaming companies and manufacturers have
different strategies for their employees. No one wants to risk losing them due to exorbitant recruiting and retraining costs. But, how long can they pay thousands of people without incoming revenues? American Gaming Association (AGA) President/CEO Bill
Miller’s official statement on March 19 confirmed the dangers of extended closures. He stated that individual state governments’ health and safety decisions impact almost 616,000 casino employees. By then, 95 per cent of 465 commercial casinos, plus 76 per cent of 524 tribal casinos had already shut down nationwide. Leading technology and other supplier companies, employing another 350,000 people, also depend on gaming.
Miller stated the following: • Mass closures will cost $43.5 billion in U.S. economic activity if American casinos remain closed into May.
• Closures may risk almost $74 billion in annual wages. The nation’s annual tax revenue and tribal revenue sharing totals about $41 billion. These essential funds support local hospitals, first responders and vital public services, which are needed now more than ever.
• Half of the jobs supported by casinos are non-gaming businesses. The financial losses for these local restaurants, bars and retailers could total $52 billion each year. Those figures also include ancillary businesses like construction, manufacturing, retail and wholesale firms.
Many casino companies paid employee salaries for two
weeks. Some, like Wynn Resorts are doing more. It has donated more than $1 million in food and donations in Las
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