High losses feared
On Monday, American Gaming Association (AGA) chief Bill Miller released a statement announcing huge losses to the industry. This is how the casino business would have been developed. This would have a serious impact on businesses and the regions in which the casinos are located, Bill Miller said.
“From a growing, prosperous area of the US economy to a standstill”
The AGA boss urged the politicians who decided to close the casino to quickly take appropriate measures to help affected companies and employees to mitigate the financial impact.
The demand was triggered by the closings of theaters, bars, restaurants, casinos and arcades in more and more states. On Monday, governors from New Jersey, New York, and Connecticut announced that all state casinos should close. Comparable measures have also become known from other US regions and even in Las Vegas, where the government has so far been unable to bring about a ban, the first operators closed their casino resorts on the world-famous Strip.
Casino industry in need
The fact that the situation for casino operators in the USA is very serious can be seen from the immense price losses that companies such as Las Vegas Sands or MGM have suffered on the stock exchanges in recent days: In some cases, the shares plummeted by up to 30% .
At the same time, companies like Caesars Entertainment, Penn National Gaming and Wynn Resorts have started tapping their cash reserves to remain liquid for the time of the closure.
How threatening the situation is can also be seen from the fact that MGM has canceled plans to buy back its shares worth billions due to the Corona crisis. Instead, in his statement, Bill Miller emphasized that AGA’s absolute priority now is to ensure that casino employees are paid.
However, it is uncertain whether the government will respond to the demands of casino operators in view of the multitude of demands that it is currently facing.