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Las Vegas Sands Corporation Possible Move

Las Vegas Sands Corporation Possible Move

It’s been nearly five months since Nevada casinos reopened. As the initial enthusiasm has worn off, it’s becoming evident that this is far from a normal operating environment. With the global pandemic creating uncertainty in the Las Vegas convention business, the main focus for casino owners is what economic recovery will look like in the near future. For one of Las Vegas’s wealthiest owners, the future may no longer be in Sin City. Sheldon Adelson’s Las Vegas Sands Corp. is exploring the sale of its casinos in Las Vegas and could possibly mark the mogul’s exit from the U.S. gambling industry in order to focus more on the Asian markets. 

As the world’s largest casino company, Sands is interested in selling off the Venetian Resort Las Vegas, the Palazzo and the Sands Expo Convention Center, which together could potentially fetch around $6 billion. All of these properties are all connected along the city’s famous strip. This sort of sale would concentrate Sands’ casino portfolio entirely in Macau and Singapore, two larger casino markets for Adelson, who ranks as one of the world’s richest people, with a fortune estimated at $29.7 billion. According to a gaming expert in Macau, the U.S. is a small and shrinking part of Adelson’s business, accounting for less than 15% of revenue last year but roughly 80% of regulatory pain and burden.

A renewed focus on the Asisan markets makes sense when taking into account that the recent recovery in Asia from Covid-19 has helped improve Sands’ operating results in the third quarter. Though Macau’s recovery from Covid-19 has been slow, there are signs gamblers are starting to return in volume as a visa backlog clears and China has lifted travel restrictions forming a travel bubble with the gambling hub. It should be noted that talks of selling these properties are only in very early discussions and that nothing has been finalized yet.

More Las Vegas Layoffs Expected

This year’s holiday season might be a lot less festive for hundreds of resort workers in Las Vegas. According to notices made public on Monday, hundreds of resort jobs in the Las Vegas Valley are facing potential layoffs in December. M Resort Spa Casino, operated by Gaming and Leisure Properties inc. and Penn National Gaming, are reportedly anticipating laying off 236 of its employees from December 21 through January 4. This follows Tropicana Las Vegas, which permanently laid off 828 employees earlier this month and plans to lay off an additional 132 workers over two weeks beginning December 23.

The notices were filed under the Worker Adjustment and Retraining Notification Act. This 1988 U.S. labor law is meant to protect employees, their families, and communities by requiring most employers with 100 or more employees to provide 60 calendar-day advance notification of plant closings and mass layoffs of employees. Both companies cited Covid-19 as the reasoning for these layoffs. According to VP for Tropicana Las Vegas “These layoffs at Tropicana Las Vegas, Inc. are the unfortunate result of COVID-19 related business circumstances that were sudden, dramatic and beyond our control. The impact on our business was not reasonably foreseeable until now…These significant drags on our business will likely continue for the foreseeable future.” 

These layoffs will not only impact families right before the holiday season, but they will contribute to Nevada’s rising unemployment problem. Last month, the state’s unemployment rate was 12.6 percent, up 8.9 percent from 2019. Nevada’s rate comes in higher than the national unemployment rate of a seasonally adjusted 7.9 percent.

Raiders Offer to Host Super Bowl

The Las Vegas Raiders, along with the city of Las Vegas, have offered to host Super Bowl LVIII in 2024. The vacancy in the NFL’s Super Bowl calendar was created when the league elected to postpone the next Super Bowl in New Orleans until 2025 because of a conflict with Mardi Gras. That conflict wasn’t originally an issue under the previous CBA when the NFL had a 16-game schedule. However, with the addition of a 17th game to the schedule and an extra week to the regular season, the game would now run concurrently with the annual event in New Orleans. Though the league will not make any announcement about a replacement city until 2021, anonymous sources within the NFL have said that Las Vegas and Allegiant Stadium will be well-received as a candidate for the 2024 Super Bowl. 

However, in their first year as an NFL city, Las Vegas has already faced major disruptions because of COVID-19. The NFL Draft in April was scheduled to be held on the Las Vegas Strip before it had to be cancelled and hosted virtually instead. The 2021 Pro Bowl set to be held at Allegiant Stadium has also been cancelled. Not to mention that the team’s debut season in its new city has been devoid of fans because of ongoing restrictions. Nevertheless, the team is hoping to capitalize on its status as an entertainment city to host the Super Bowl for the first time in history. If Las Vegas is chosen, you can expect it to be both the biggest sporting event and the biggest sports betting night of the year.

Updating Casino Security

Now that casinos have started to reopen and adjust to a reduced number of patrons, it is a perfect time to rethink and update security and other administrative practices at casinos. Switching to Casino Schedule Ease will help businesses run more efficiently and smoothly while also simplifying the chaos of scheduling and managing a staff 24/7.

This next-generation casino and table game scheduling software delivers the most flexible, user-friendly, customizable, and mobile-accessible experience found anywhere. Utilizing the cloud, this scheduling software hosts, maintains, and backs up all records so casinos are not forced to use their own network resources. Furthermore, Casino Schedule Ease relies on BioStation T2, a state-of-the-art system that requires employees to clock in and out using their fingerprints and takes a photo of the employee so that exact clock in and out times cannot be misrepresented. Casino Schedule Ease is the best thing that could happen to your casino operations.

Betting on Presidential Debates and the Election

As with any presidential election, the run up to Election Day is eventful. Whether it is the Presidential or the Vice-Presidential debates, sports betting is allowing people the opportunity to win cash on it all. According to DraftKings, their Sportsbook is giving bettors located in certain states the ability to win in a free-to-play $50k pool during the first Presidential debate on September 29.

Broadcast on several prominent networks across the country, this debate, which will be held in Cleveland, offers the candidates their first face-to-face opportunity to address several of the country’s most pressing issues. These issues will range from the coronavirus to the economy to the integrity of the election. The 2020 Presidential Debate pool at DraftKings Sportsbook will require no entry fee, is available to users of the sportsbook and will pay out over 4,000 winners. Sportsbook users will have an opportunity to make wagers on 10 different questions and can lock in their answers right up until the start of the debate. According to DraftKing, all prize money, which will total up to $50,000, will be distributed on Wednesday, September 30. 

While it is still illegal for betting in the United States to occur for the actual presidential race, earlier this month the betting average at UK books showed the race rather close. The most recent betting rates show Biden holding a 53 percent chance of winning, to Trump at 46.3 percent. PredictIt, a New Zealand-based prediction market and online betting exchange that offers prediction exchanges on political and financial events, has the Democratic candidate a heavier favorite. These recent betting rates take into account national polls released each week. For example, in an ABC News/Washington Post national poll released this weekend, Biden was favored by 54 percent of likely voters, with Trump at 44 percent. 

Support of Voters

With the Nov. 3 election just a few weeks away, there are continuing warnings from the hospitality sector about the impact from the pandemic. MGM Resorts has already permanently laid off some 18,000 positions nationwide and more industry layoffs are likely. Tribal casinos also report financial challenges. But neither presidential candidate has made it a top priority to bail out casinos. Rather, Presidential contenders Donald Trump and Joe Biden are more focused on trying to capture the support of voters concerned with the gaming industry. Each candidate’s positions differ though based on who they are reaching out to: casino owners or union members.

Casino owners are concerned about revenue and bringing back lost business. Casino workers on the other hand are more concerned about their safety. President Trump, the Republican incumbent who used to own several gaming properties, wants all businesses, including casinos and related venues, to reopen as quickly as possible despite coronavirus risk. Therefore, from the point of view of casino owners, Trump is preferable. This has led to many wealthy casino owners donating to President Trump’s campaign.

According to recent FEC filings, high-profile casino owners such as Las Vegas Sands billionaire Sheldon Adelson and Red Rock Resorts owners Lorenzo Fertitta and Frank Fertitta III are major donors to the Republican Party and to the Trump campaign. On the other hand, Biden, the former Democratic vice president, has proposed another lockdown if COVID-19 sees a resurgence in the winter. This has made Biden the preferred choice when looking from a worker safety point of view. Several powerful casino unions, such as Nevada’s influential Culinary Union, have endorsed Biden. Biden has even called upon Station Casinos and its parent company Red Rock Resorts to negotiate immediately with union workers at several Nevada casinos.

Election and the Online Gaming Industry

According to gaming experts, as far as brick-and-mortar commercial gaming properties are concerned, the presidential election will have minimal direct impact on the land-based casino industry. This is the result of the industry as a whole moving past its pariah status and having both political parties respect the rights of the individual states to determine whether to have land-based casinos and how to best regulate them. More likely than not though, the choice of president could impact the regulatory and legal climate for online casinos and gambling. 

The Wire Act, a United States federal law prohibiting the operation of certain types of betting businesses in the United States, is at the center of this debate. The U.S. Fifth Circuit Court of Appeals has ruled that the Wire Act prohibition on the transmission of wagers applies only to sports betting and not other types of online gambling. The Supreme Court has not ruled on the meaning of the Federal Wire Act as it pertains to online gambling. In an opinion issued in November 2018 and published in January 2019, the Department of Justice stated that the Federal Wire Act applies to all gambling and not just sports betting. However, as recently as June of 2019, a District Court Judge issued a summary judgment that the Wire Act is limited to sports gambling and set aside the 2018 DOJ opinion.

During President Trump’s first term, the Department of Justice (DOJ) has argued in court for harsher restrictions on online betting and continues to oppose the rights of states to offer internet gambling. These efforts have continued to fail in court. With the DOJ’s continued failure in court, many states have completely disregarded President Trump’s efforts to restrain online gambling and close to 17 states have started offering online sports wagering. In contrast to President Trump, Joe Biden told a Culinary Union audience in December of 2019 that he opposed adding “unnecessary restrictions” to the gaming sector and these comments were taken to be in reference to the Wire Act.

Updating Your Security

With the upcoming election and the rise of sports betting in many states, it is a perfect time to rethink and update security and other administrative practices at casinos. Switching to Casino Schedule Ease will help businesses run more efficiently and smoothly while also simplifying the chaos of scheduling and managing a staff 24/7. This next-generation casino and table game scheduling software delivers the most flexible, user-friendly, customizable, and mobile-accessible experience found anywhere. Utilizing the cloud, this scheduling software hosts, maintains, and backs up all records so casinos are not forced to use their own network resources. Furthermore, Casino Schedule Ease relies on BioStation T2, a state-of-the-art system that requires employees to clock in and out using their fingerprints and takes a photo of the employee so that exact clock in and out times cannot be misrepresented. Casino Schedule Ease is the best thing that could happen to your casino operations.

Las Vegas Recovery Update

It’s been nearly two months since Nevada casinos reopened for gambling. As the initial enthusiasm wears off, it’s becoming evident that this is far from a normal operating environment. Besides the implementation of current safety measures, the main focus for casino owners is what economic recovery will look like. Earlier this month, the second-quarter results came in for Las Vegas casinos and it was reported that there has so far been a year-over-year revenue drop of 45.6 percent and a 61 percent decline in revenue when compared with the same month in 2019. Overall, it could be a while before Las Vegas looks like it did prior to the emergence of the COVID-19 pandemic. 

Many people in the casino industry believe that the return to normalcy is tethered to efforts to develop a vaccine that will vanquish the virus. However, casino owners are facing increased pressure because they are unable to control the timeline of an available vaccine. Even though numerous pharmaceutical companies are making progress towards a vaccine, a safe antidote to the coronavirus is likely still several months away.

Most health officials believe that at least one of the vaccines currently being developed will be finished by December or early 2021. If this is correct, it would still take several months before the product could be widely distributed. If Las Vegas hopes to financially rebound and reach capacity levels from previous years, they will most likely not be able to until the second half of 2021 or even early 2022. 

Tribal Casinos Update

As Native American tribes start to recover from the coronavirus pandemic, many tribal casinos are still trying to figure out the best regulations and precautions to implement in order to welcome back guests safely. In Iowa, for example, four major casinos — the Blackbird Bend Casino, Meskwaki Bingo Casino, Prairie Flower Casino, and WinnaVegas Casino Resort — have reopened in the last two months and have added new rules for patrons to follow. Among the new precautions is face mask requirements and a ban on smoking and vaping inside the gaming venues.

When asked about the new smoking and vaping ban, the chairman of the Ponca Tribe, which owns Prairie Flower Casino, said that allowing smoking would have conflicted with the venue’s face covering requirement. Though some visitors disagreed with the ban, the tribal casino has set up a smoking area, approximately 50 feet from the entrance, for smokers. WinnaVegas Casino Resort in Sloan, owned by the Winnebago Tribe, also has been smoke-free since early June. With masks required inside the venue, the casino’s marketing director has stressed that their first priority is the safety of the guests, team members, and community members. Similarly to Prairie Flower Casino, WinnaVegas has allocated a designated outdoor smoking area located 20 feet away from the entrance.

In other tribal casino news, the Keweenaw Bay Indian Community has reached a deal with American iGaming operator Golden Nugget Online Gaming Incorporated to enter the online casino and sports betting market in Michigan. The Keweenaw Bay Indian Community is currently responsible for Ojibwa Casino-branded venues in the small northern Michigan communities of Baraga and Marquette. With this new deal, the community would be able to offer a variety of online casino, gambling and sports betting entertainment options.

Although Michigan legalized sports betting and online casino gambling late last year, the state has not yet awarded any casino an iGaming license. If the Michigan Gaming Control Board approves this license soon, it is believed that this iGaming enterprise could go live as soon as the end of October. However, due to the state’s lack of movement around license approval and the coronavirus, it is likely that they will have to wait until next year before launching.

Sports Gambling News

With the return of major US sports, including the NHL, there has been a return in sports betting. In Colorado, where it has only recently become legal, there is increased optimism about the trajectory of sports betting within the state. According to recent data, even with a shortened sports calendar, there was a 49 percent increase in sports betting in Colorado during the month of June when compared to May. These figures come from the business conducted by six internet operators and one retail sportsbook location operating during the month. Overall, Colorado’s online sports wagering market, which is expected to drive growth there, is attracting more retail and online operators and therefore lead to an increase in revenue and taxes in the months ahead.

In other sports betting new, DraftKing has been named the first “Official Betting Partner” of the PGA Tour. This deal gives the sportsbook rights to use PGA Tour trademarks, opportunities to advertise within the tour, and content and video distribution privileges. Though DraftKings became the PGA Tour’s first official betting partner in July of last year, the two entities are now furthering their partnership. According to DraftKings, golf is the fourth most-wagered-on sport and activity has only increased since the PGA Tour resumed their tournament last month. When it returned last month, DraftKings reported more gambling than it ever had on the first day of the four-day tournament.

Updating Your Security

Now that casinos are starting to reopen and adjust to a reduced number of patrons, it is a perfect time to rethink and update security and other administrative practices at casinos. Switching to Casino Schedule Ease will help businesses run more efficiently and smoothly while also simplifying the chaos of scheduling and managing a staff 24/7. This next-generation casino and table game scheduling software delivers the most flexible, user-friendly, customizable, and mobile-accessible experience found anywhere. Utilizing the cloud, this scheduling software hosts, maintains, and backs up all records so casinos are not forced to use their own network resources.

Furthermore, Casino Schedule Ease relies on BioStation T2, a state-of-the-art system that requires employees to clock in and out using their fingerprints and takes a photo of the employee so that exact clock in and out times cannot be misrepresented. Casino Schedule Ease is the best thing that could happen to your casino operations.

Casino Coronavirus Update

As of early June, casinos in nine major US gaming jurisdictions, including Nevada and Pennsylvania, have begun to open back up. As more casinos open their doors, state officials are imposing limitations to ensure the safety of visitors. The most notable limitations include restricted occupancy levels, additional safety measures, and available gaming capacity. These limitations could impact Las Vegas’s push to reopen all of their hotels, restaurants, casinos and shops in time for the Fourth of July weekend.

Besides the implementation of current safety measures, the main focus for casino owners is what economic recovery will look like. Many analysts are warning that recovery for the gaming industry will not be the V-shaped recovery that many are hopeful for. Instead, casinos have been told to expect the recovery to stretch out over the next three years. This forecast is based roughly on the expectation that reopenings will be slowed by economic headwinds and travel restraints caused by the coronavirus pandemic. Furthermore, destination spots, such as Las Vegas and Macau, will have the slowest recovery in comparison to more regional casinos. This is due to destination spots having a greater reliance on tourism, air travel, and convention whereas regional spots can advertise as being a local, drive-in location.

For some states, implementing safety measures are not enough for government officials to grant casinos the ability to reopen. No reopening date has been set for Atlantic City’s nine casinos. Many are pointing at New Jersey as having the second-highest number of virus cases in the nation as the reason for the delayed reopening. While the casinos may still be closed, many establishments have taken advantage of Governor Murphy’s recent easing of virus restrictions and are offering outdoor dining. The Golden Nugget Atlantic City and the Landshark Bar & Grill at Resorts Casino Hotel have opened their outdoor deck for food and drinks. 

Tribal Casino Reopening News

As Native American tribes start to recover from the coronavirus pandemic, many tribal casinos are trying to figure out the best way to welcome back guests while also protecting everyone. Earlier this month, the Cherokee Nation announced that they would welcome back guests to its 10 casino properties throughout northeast Oklahoma. Based on the success of these 10 openings, the remaining 7 properties in the state will open. All properties will operate at a reduced capacity with enhanced health and safety protocols in place. Those protocols include physical distancing, enhanced cleaning and sanitization, facemask requirement, and noninvasive temperature screenings for both team members and guests. Anyone with a temperature above 100.4 F will not be permitted to enter the building. Furthermore, each casino floor will be closed to the public from 2 a.m. to 10 a.m. everyday to accommodate deep cleaning and sanitization.

In comparison to the Cherokee, the Navajo Nation has decided to wait until July to reopen their casino operations in an effort to curb the spread of the virus. In preparation for their opening next month, the Navajo have taken additional steps to ensure the safety of all visitors and workers. This includes deep cleaning and sanitizing all of their properties. These additional steps not only apply to their casinos but were implemented across their entire reservation, which includes parts of Arizona, New Mexico, and Utah.

Sports Betting Debate

As casinos and gaming establishments attempt to recover from the devastating economic impact of the coronavirus pandemic, one mode of gambling may show some promising results. Globally, sports betting is seen as an engine for economic recovery this year. 

In the United States, sport betting is now available in a number of new states. DraftKings, a sports betting and gaming provider that operates in at least nine states, has expanded into more networks. In early June, they announced a partnership with Bay Mills Resort & Casino in Michigan to enter into a new market access deal that will hopefully bring the U.S’s number one-rated mobile sportsbook to sports fans across the state. According to recent announcements, Michigan presents a number of gaming opportunities for DraftKings and they plan to collaborate with Bay Mills to provide residents with the best-in-class experience. As sports across the United States return, DraftKings aims to provide consumers with an innovative, immersive, and entertaining gaming experience. In addition to mobile and online sportsbook access, the partnership will allow Michigan sports fans to place sports bets in person at a retail betting location at Bay Mills Resort & Casino. 

In Brazil, sports betting has recently been increasingly seen as an avenue for economic growth. This hasn’t always been the case though. Brazil has traditionally resisted most forms of gambling expansion, including sports betting. However, momentum has been building towards legalizing commercial casinos in recent months. In May, Brazil’s Federal Deputy called for casinos as a way to revitalize the Brazilian economy. However, even with this recent policy change, combined with the pandemic and the realities of any bidding process, the implementation of sports betting in Brazil is expected to be delayed and most officials believe that 2021 will be a more realistic goal for making this available in Brazil. 

Updating Your Security

Now that casinos are starting to reopen and adjust to a reduced number of patrons, it is a perfect time to rethink and update security and other administrative practices at casinos. Switching to Casino Schedule Ease will help businesses run more efficiently and smoothly while also simplifying the chaos of scheduling and managing a staff 24/7. This next-generation casino and table game scheduling software delivers the most flexible, user-friendly, customizable, and mobile-accessible experience found anywhere. Utilizing the cloud, this scheduling software hosts, maintains, and backs up all records so casinos are not forced to use their own network resources. Furthermore, Casino Schedule Ease relies on BioStation T2, a state-of-the-art system that requires employees to clock in and out using their fingerprints and takes a photo of the employee so that exact clock in and out times cannot be misrepresented. Casino Schedule Ease is the best thing that could happen to your casino operations.

Casinos have been devastated by the coronavirus pandemic. Places such as Las Vegas, San Diego, and coastal Louisiana, which normally rely on tourism, conventions, and other mass gatherings to drive foot-traffic, have seen their sources of revenue completely disappear. Many major casino operators – such as Caesar, Wynn Resorts, and even MGM Resorts International – have had to find alternative revenue for the past two months. For many, that has involved opening up their restaurants to serve local residents via delivery and takeout options.

Hope is on the horizon though. As the national infection rate begins to slow down, many states, and casinos, are starting to reopen again. To discover what reopening will look like within the casino industry, we have decided to look into the reopening plans for the major casino operators in Las Vegas. Let’s briefly examine a couple of the casinos that have already opened this month, and touch on the closing of some casinos due to the coronavirus. 

Las Vegas’s Reopening Plan

All across Las Vegas, casinos are trying to figure out the best solution for their guests’ safety. Earlier this month, MGM Resorts International unveiled a “seven-point safety plan” to reopen its Las Vegas casinos and hotels. This safety plan included the closure of all buffet-style meals, the new additions of plexiglass barriers and handwashing stations, and enforced physical distancing at slot machines and card tables. One other aspect of MGM Resorts’ plan includes the implementation of touchless ticketing for entertainment shows and virtual check-in and check-out for their hotels.

It is important to mention how the current proposed reopening protocols mostly address the safety needs of employees and guests, and do not directly address how the Las Vegas casino will protect entertainers who perform on its stages. Many casinos are expecting guests and hotel employees to screen themselves for coronavirus symptoms before entering. Once inside, employees will be required to wear protective masks and gloves. 

Along with rivals Las Vegas Sands and MGM Resorts International, Wynn Resorts is using their Macau casinos as a reopening model and implementing strict coronavirus screening and social distancing protocols. In all of the Wynn casinos, there will be strict rules regarding how many players can play at the same time. They will be removing some seats in the casinos, rearranging machines, or even turning some off. In addition, hand sanitizer will be offered to players at table games. 

It is predicted that many of the casinos in Las Vegas will struggle to make money under these conditions. While it is not a return to normal, it is a baby step toward that. In theory, this will help many of the major casino operators cut their losses and bring back some customers. It will however be a long road back to normalcy. 

Some Casinos Have Already Opened 

While casinos in Las Vegas finalize their reopening plans, many casinos elsewhere in the United States have already started reopening this month. In Louisiana, state casinos were permitted to reopen their doors beginning May 18th. This marked the largest reopening so far among U.S. casino markets hampered by the coronavirus shutdown. Casinos will be limited to 25% occupancy for the time being and the games must be spaced appropriately to abide by social distancing guidelines. Louisiana’s reopening is important for another reason. Most of its gaming venues are considered regional properties, the type that is expected to rebound quicker in comparison to destination markets such as Las Vegas. Additionally, Louisiana has a history of luring customers and tourists from Texas, where there are no traditional casinos.

In addition to Louisiana, Harrah’s Cherokee Casinos in North Carolina has begun a gradual reopening. As North Carolina begins to lay out a framework for easing restrictions relating to the pandemic, the Eastern Band of Cherokee Indians (EBCI) and its casinos are looking forward to a return to operation, but with extensive health and safety precautions in place for the safety of employees and guests. Areas where social distancing can be practiced, such as the gaming floor, hotel and some restaurants, were the first to open.

Areas where social distancing is not possible, such as the spa, valet, poker, buffet and concerts, will remain closed until it is appropriate to reopen. Furthermore, access to the casinos is going to initially be by invitation only. During this initial phase, only invited guests will be able to make hotel reservations, or access the properties. It is expected that the number of invitations will increase over time.

Casinos Closed Permanently

While most casinos in Louisiana and the United States are coming up with their reopening plans, there is at least one casino that has decided to shut its doors for good. The DiamondJacks casino in Bossier City announced earlier this month that they would permanently stay closed due to the economic devastation brought forth by the coronavirus. Officials with DiamondJacks have stated that there are currently no plans for it to switch owners or for a new investor to reopen the casino. DiamondJacks is at least the second US casino to announce its permanent closure as a result of the coronavirus pandemic, which forced all US tribal and commercial casinos to shut down as federal and local governments sought to control the spread of the coronavirus. The Lakeside Inn in Nevada announced its permanent closure in April. Only time will tell if more casinos will follow the path of MGM International and Harrah’s Cherokee Casinos or fall victim to the coronavirus and join the ranks of DiamondJacks and Lakeside Inn in permanently closing.

While we may not yet know whether there will be a second wave of the coronavirus, we are able to track the casino industry’s response and future plans. As more and more U.S. casinos continue to open, many are eagerly awaiting to see what the new normal will look like in these entertainment meccas. To stay on top of the latest casino and gambling news, be sure to keep visiting the Casino Schedule Ease blog.

As some states begin to flatten their coronavirus infection curve, there have been increasing calls for quarantine and social distancing rules to be relaxed. What impact that will have on the spread of the virus is uncertain at this time, but what is known is that this is a public health crisis forcing many local economies to take a nosedive. Few places were hit harder than Las Vegas, where a full one-third of the local economy is in the leisure and hospitality industry – more than in any other major metropolitan area in the country. Most of those jobs cannot be done from home. As governors and mayors across the country wrestle with the question of when and how to reopen their economies, Las Vegas faces particular pressure because of its dependence on tourism and hospitality. To discover just how hard it will be for Las Vegas to reopen, we have decided to take a closer look into the current impact the coronavirus is having on Las Vegas and the government and casino industry’s responses to reopening. 

Impact on Las Vegas

Governor Steve Sisolak ordered all casinos and gaming facilities to close to prevent the spread of the coronavirus starting in mid-March, and has extended the order until at least the beginning of May. Since then, Las Vegas’ casinos and industry workers have been struggling to cope in this uncertain time. Across the state of Nevada, gaming companies have reported a nearly 40 percent drop in gaming revenue since the beginning of the coronavirus pandemic.  In Las Vegas, specifically, that number is closer to 46 percent. Nevada’s casinos reported more than $600 million in revenues in the month of April, a significant decrease compared to last year’s data. This number is expected to fall even further in May.

Nearly 350,000 Nevadans have filed for unemployment since the start of the pandemic, and the jobless rate in Las Vegas is a reflection of the pandemic’s impact on the casino industry. More than 98 percent of the nearly 307,000 employees represented by the Unite Here Local 226 Culinary Workers Union, which represents casino workers in Las Vegas and Reno, are currently unemployed due to the crisis. Applied Analytics, a Las Vegas-based economic research firm, has reported that the jobless rate in the city is close to 25 percent, nearly double the rate during the height of the Great Recession. Prior to March, the state had reported its lowest unemployment rate in history, 3.6 percent in February.

Government Response to Reopening

While the coronavirus’ impact on the gaming industry in Las Vegas has been substantial, many agree that the city’s casinos should be reopened. Solutions from state and local officials, however, have been divided on how to properly respond to the crisis. Gov. Steve Sisolak announced earlier this week that decisions for reopening casinos and other nonessential businesses would be determined by the state public health standards. Specifically, the governor stated that Nevada would have to see a sustained decline in confirmed cases of the coronavirus in order to consider reopening the gaming industry.

At the same time, the mayor of Las Vegas, Carolyn Goodman, publicly called for casinos to reopen operations immediately and begin to formulate their own preventative measures for enforcing proper sanitation procedures and social distancing guidelines. On April 21, the Nevada Gaming Control Board released a six-page memorandum detailing procedures that the state’s gaming facilities must follow in order to reopen properly. These procedures include a formal announcement of the date and time of their planned reopening, guidelines for registering laid-off employees, as well as a detailed plan by casinos on how they plan to properly ensure the health and safety of their visitors. There is no word on whether the reopening of Las Vegas’ casinos will apply to the rescheduling of major sporting events, concerts, and shows.

Casino Responses to Reopening

Las Vegas’ major casinos are also making their own preparations in order to safely reopen their facilities to visitors and tourists. In mid-April, the CEO of Wynn Resorts wrote an opinion article arguing that Nevada should reopen its gaming facilities, citing the state’s flailing economy and the fact that health officials in the state have noted that they have begun to flatten the curve of new coronavirus infections. Las Vegas Sands, which owns both the Venetian and Palazzo casinos on The Strip, announced that, upon reopening, it would be screening guests as they entered the hotel with thermal cameras in order to check if guests are running high temperatures, a major symptom of the coronavirus. Las Vegas’ Treasure Island casino announced earlier this week that it has begun to take guest reservations at its resort starting on May 15. For many of the casinos, their primary concern in reopening their facilities is to drive-markets in states like California, which represented roughly 23 percent of the city’s total visitation in 2018.

Looking to the Post Coronavirus Future

While we may not know when this public health crisis will be under control, we are able to track its impact on the economy and the entertainment industry. Although the governor’s last formal extension of Nevada’s stay-at-home order was extended to April 30, it is likely that Gov. Sisolak will extend the order until at least the first or second week of May. Even as almost all of the U.S. commercial and tribal casinos in the country have been temporarily closed, many are wondering what it might look like for casinos to bounce back after this pandemic is over. Hope is not lost however, as some casinos are still paying their workers or are setting up food banks for their employees and customers to take advantage of. To stay on top of the latest casino and gambling news, be sure to keep visiting the Casino Schedule Ease blog.

With the number of infected people in the United States continuing to rise, the coronavirus has effectively changed the way that the country operates. This public health crisis is forcing the economy to a crawl and is upending entire industries — from sports to travel to entertainment. As a $261-billion-a-year industry, the casino and gambling industry have been hit hard by the coronavirus. To discover just how hard of an impact it may have, we have decided to take a closer look into the recent closure of almost all U.S. commercial and tribal casinos in the country, and what it might look like for casinos to bounce back after this pandemic is over. 

Decline in Tourism 

In February, amid the United States’ implementation of international travel bans because of the coronavirus, some cities started to see their tourism numbers begin to drop. Las Vegas, even without all of their international clients, still had tourists flock to take pictures in front of the Fountains of Bellagio and the replica Eiffel Tower at the Paris Las Vegas Hotel and Casino. Inside these establishments, gamblers were still rolling dice and collecting chips and people could be seen dancing in the multistory nightclubs. 

However, this would not last long as the effects of the pandemic started to grip Sin City. Major conventions, like the National Association of Broadcasters, which draws in over 90,000 attendees each year, canceled. By the end of the second week of March, almost all conventions held in Las Vegas through May had been postponed or cancelled. 

Casinos Start to Close Their Doors

Due to the intensifying coronavirus outbreak, and its unprecedented economic fallout, huge shutdowns within the casino industry have occurred. In total, 95 percent of all commercial casinos have announced that they will close starting this week. For example, the Wynn Resorts, a major casino operator, announced it would close its Wynn Las Vegas and Encore properties. They have also announced that all full-time employees would be paid through the temporary closures. MGM Resorts International, another major entertainment company, announced the temporary closure of all of its domestic hotels and casino operations. They will also not be accepting any reservations before the beginning of May. 

In addition to the closure of commercial casinos, the American Gambling Association (AGA) announced that at least 97 percent of the country’s 524 tribal gaming properties are closed. Those that remain open are mostly Native American convenience stores that feature gaming machines. It is important to note that while states lack the authority to force tribal casinos to shutter their operations, as the venues are on sovereign territory, almost all tribal nations that operate gaming are closing their casinos in a nationwide effort to slow the spread of the coronavirus.

With many of the nation’s biggest attractions — from Disney World to March Madness — closing or suspending service because of the pandemic, it is unclear how long the casino gambling industry, which supports 1.8 million jobs, can last during a shutdown. 

Impact of Sweeping Coronavirus Closures

Casinos were already feeling pinched as patrons shy away from handling chips, cash, slot machines and playing cards. Not only has consumer spending plummeted as more and more people avoid restaurants, shopping centers, and large public gatherings, but it has also sparked layoffs to occur all across the country. A prolonged shutdown of this magnitude into the summer could have shattering effects in gambling meccas such as Las Vegas and Atlantic City. The industry in these cities are a big regional employer and one of the top economic engines for both of these states. 

According to the Las Vegas Convention and Visitors Authority, in 2018 about 37.6 percent of the workforce in southern Nevada were supported by tourism. The impact of the sweeping closures was felt immediately with over three times as many people filing for unemployment than normally. In an attempt to help out their workers and not have food spoil, many casino restaurants across the country have been transformed into makeshift food banks. In Las Vegas, card dealers, servers, bartenders, housekeepers and others normally keep the revelry running for over 40 million visitors a year. However, by last week, barricades were placed outside casino doors. All of the cash machines were emptied. The slot machine screens were turned off and all of the tables had been wiped down and bar stools stored away. 

Bouncing Back from the Coronavirus

However, even after the pandemic is contained, it’s hard to say how quickly casinos will be able to bounce back. For many casinos, simply opening the doors will not be enough. According to financial service company, Standard & Poor’s, even after the coronavirus is under control, casinos should expect further financial hurt as states continue to implement social distancing and travel restrictions. Nevertheless, there is more hope for regional gaming markets compared to destination markets such as Las Vegas as customers are more able to drive to local properties, rather than fly or travel long distances.  

While we may not know when this public health crisis will be under control, we are able to track its impact on the economy and the entertainment industry. Even as almost all of the U.S. commercial and tribal casinos in the country have been temporarily closed, many are wondering what it might look like for casinos to bounce back after this pandemic is over. Hope is not lost however, as some casinos are still paying their workers or are setting up food banks for their employees and customers to take advantage of. To stay on top of the latest casino and gambling news, be sure to keep visiting the Casino Schedule Ease blog.

Seven times larger than Las Vegas, Macau is dependent on the millions of tourists that come from the mainland every week. The beginning of the year is especially profitable for Macau as tourists arrive to spend the Lunar New Year holiday at the city’s baccarat tables and Michelin-starred restaurants. However, this year has not been full of guests and celebrations. Casino operators in Macau are taking a beating as fear of a new threat, the coronavirus, has caused a surge in trip cancellations to the casino hub. As a major player in the casino world, it is no wonder we have decided to take a closer look into the history of Macau, how the coronavirus is affecting this city, and what the future holds.

History of Macau

Human settlements within the Macau region started forming around six thousand years ago. The region was settled during the Han dynasty, but it did not develop as a major settlement until the Portuguese arrived in the 16th century. The initially small population of Portuguese merchants rapidly became a growing city, and around the late 1500s, a government was formed to handle municipal affairs. Macau entered a period of decline in the 1640s following trade routes with Japan and Portugal being severed and the Portuguese revolution against Spain. For the next 300 years, it would switch between being a Chinese and Portuguese colony. 

During the mid-1900s, refugees from mainland China swelled the population of Macau as they fled from the Chinese Civil War. Access to a large workforce enabled Macau’s economy to grow. As the colony expanded, so did the textile manufacturing industry and tourism industry in Macau. This was also the period in which casino gambling became legalized in Macau. Following deadly riots in 1974, Portugal formally relinquished Macau as an overseas province. 

Returning to Chinese control in 1999, Macau became the only part of China to allow casino gambling. Almost overnight, Macau rapidly urbanized and constructed large-scale infrastructure projects, including Macau International Airport and transformed it into a thriving hub for entertainment and fine dining. In 2002, the government allowed open bidding for casino licenses to attract foreign investors. Along with an easing of travel restrictions on mainland Chinese visitors, this triggered a period of further economic growth. Gambling companies built vast casinos that now illuminate the skyline. Often compared to Las Vegas, Macau offers everything, from a miniature Eiffel Tower to a gilded-dragon cable car that floats past dancing water fountains at the Wynn Palace. 

Impact of Coronavirus

A respiratory virus that originated in China and has already spread to more than 35 countries, the coronavirus is leaving many experts fearing a pandemic may be on the way. In Macau, authorities have already identified numerous individuals that have been sickened by this illness, among them a hotel employee at Galaxy Casino, one of the city’s busiest gambling establishments. Authorities have suspended basic public services and have urged residents not to leave their homes except to get food. To combat this virus from further spreading in the region, officials in Macau also asked its 41 casinos in early February to close for half a month. This move not only shut down the world’s largest gambling city but was also a big financial hit towards American casino operators like Wynn Resorts and Las Vegas Sands as well as the local companies that sustain the territory’s economy. 

Since gambling accounts for four-fifths of the Macau government’s revenue, closing all casinos for 15 days is going to drastically impact yearly financial performance. It’s like closing the Las Vegas strip for 15 days, but six times over. According to some reports, the Wynn Resorts in Macau was losing as much as $2.6 million per day during the closure. Furthermore, the drop in casino revenue comes after a particularly challenging year for the companies in Macau. Slowing economic growth in both China and across the world has some worrying about reduced gambling activity this year.  

Looking Ahead

It should be noted that some analysts have downplayed the potential for the coronavirus to financially affect Macau’s casinos’ long term, pointing to how quickly gambling revenue rebounded following the SARS outbreak in 2002. However, SJM Holdings was the only major casino operator in Macau at the time and it did not have the competition from Galaxy Entertainment or Las Vegas Sands like it does today. Furthermore, there are currently no signs of when a bounce-back might come. New instances of coronavirus are still being discovered every day and the disease’s global reach is growing.

Entering this year, the consensus view among Macau casino operators was that the first half of the year would be slow before a rebounded materialized in the back half. But that outlook did not account for the coronavirus. The outbreak has now caused analysts to believe that it’s nearly impossible to project any financial projections for 2020. At the very best, the two-week closure could shave 5 to 15 percent off Macau’s gaming revenue this year. 

After taking a look at the history of Macau, it’s amazing to see how far they’ve come, but seeing how they will continue to progress in the future still remains a mystery. While most of China remains shut down by the coronavirus, the global economic outlook, the fortunes of major casinos, and the jobs of workers around the world depend on how quickly China, and Macau, is able to come back. To stay on top of the latest casino and gambling news, be sure to keep visiting the Casino Schedule Ease blog.

With the first month of 2020 almost over, it is important to take a moment to look ahead and examine emerging trends that may influence the casino industry this year. While last year brought about the closure of Resorts Casino Tunica and many other notable casinos, the future is looking very bright with plenty of new planned openings scheduled for this year. It should come as no surprise then too that technology is going to continue to play a major role in the casino industry. Therefore, here are some new openings and technology trends to be on the lookout for in 2020.

New Casinos Opening in 2020

Circa Resort

For the first time in more than four decades, an all-new resort is being built on Freemont Street in downtown Las Vegas. Standing at 459 feet tall, this 44-story resort will take up an entire block and be home to 777 rooms. According to owners Derek and Greg Stevens, Circa will have a two-level casino and a nine-story parking garage, known as Garage Mahal, which will be located across the street from the resort. The property is also planning to have the longest outdoor bar to be located on Fremont Street and a six-tiered pool area that includes a 125-foot television screen.

While all of those other amenities are nice, the real showcase of this new resort is the three-story, stadium-style sportsbook. Expected to be the biggest in Las Vegas, Derek Stevens’ has stated that his vision for the sportsbook was inspired by the sportsbooks at Caesars Palace and the Hilton. The Circa’s sportsbook would also include the Vegas Stats & Information Network and is expected to become the center of sports wagering in downtown Las Vegas. If everything goes smoothly, the new resort will be open in December of this year.

Emerald Queen Casino and Resort

While the Puyallup Tribe has been successfully running the Emerald Queen Casino in Tacoma, Washington for the past 15 years, the tribe has only recently been able to make major strides in replacing the former bingo hall into a mega-casino and resort. Construction on this new facility spans over 310,000 square feet with a 110,000-square-foot gaming floor, a 21,000-square-foot event center with 2,000 seats and a 200-room hotel with spa and conference rooms. The casino will incorporate tribal art throughout, a cedar paneling that is evocative of a tribal longhouse and will feature exterior metal panels in a design reminiscent of basket weaving. Drawing comparisons to hotels in Las Vegas, the Emerald Queen Casino and Resort is sure to attract many visitors traveling down I-5. The grand opening is scheduled for next month.

This is just one of many renovation and expansion projects among tribes across the country. These groups are looking to increase profits and 2020 will see the completion of a variety of major improvement projects among Indian owned casinos.

New Legislation, New Opportunities

Atlanta Motor Speedway

Georgia is one of only a handful of states that does not house a land-based casino, but that might change in the near future. Earlier this month the Special Committee on Economic Growth, a committee made up of 15 state representatives, hosted a public hearing to gather input from the local community on possible gambling expansion at the Atlanta Motor Speedway and over 200 residents showed up. However, in order to pass gambling legislation in Georgia, it would require an amendment to the state constitution. This means that a two-thirds majority vote in both the house and senate would need to occur before citizens could even have a chance to vote on it at the ballot box.

If new legislation were to pass, the site of the hearing would be the site of the state’s first casino. Ed Clark, president of the Atlanta Motor Speedway, released plans last year to add a casino, hotel, an indoor and outdoor water park, a concert venue, a nightclub and several other attractions to the racetrack. His plans would turn the speedway into a year-round attraction instead of just during the NASCAR season.

This would not be the first speedway in the country to renovate their facilities with casinos. Both Kansas Motor Speedway and Delaware’s Dover International Speedway each have casinos attached to them.

Pamunkey Indian Tribe and the City of Norfolk

Earlier this month, the city of Norfolk, Virginia, signed a $10 million agreement with the Pamunkey Indian Tribe for the purchase of 13.4 acres of land for the development of a waterside resort casino. The signing comes after over a year of negotiation between the City Council and the tribe.

The proposed Pamunkey Resort and Casino would include a four-diamond, full-service convention hotel, several onsite restaurants, an entertainment venue, a luxury spa, and both indoor and outdoor swimming pools. While construction has not even started yet, it is projected to create thousands of full-time jobs and attract millions of new visitors to the city each year.

However, while 2020 is an exciting time for Norfolk and the Pamunkey Tribe, there is a minor speed bump before any construction can even begin. According to a provision in the agreement, the tribe cannot fully purchase the land until they are given the right to conduct commercial gaming. Since commercial gaming is not yet legal in Virginia, the General Assembly would need to first legalize commercial gaming before any party could begin to reap the benefits of this new project. The state did adopt legislation last year that specifically would allow casinos in five cities, including Richmond and Norfolk, but the legislation would need to be passed again this year to become law.

The tribe has modified its development plans in an attempt to be more actively involved in current General Assembly deliberations regarding possible casinos in Bristol, Danville, and Portsmouth. With the possibility of the federal process for a tribal casino taking years, by the time the tribe’s project would be ready to proceed, other casinos would likely already be operating.

As the year 2020 continues to unfold, we are expecting more big news in the worlds of casinos, gambling and gaming. Visit Casino Schedule Ease to learn more about how management software is helping casinos meet modern demands and to stay up-to-date with the latest news happenings through our blog.