Author: Casino Connection Staff

Reopening plans for Atlantic City’s nine casinos just got a little more complicated, as Gov. Phil Murphy has imposed new restrictions on indoor dining and the serving of alcohol on the casino floor, as well as a smoking ban. 

The surprise announcement, made on Monday, June 29—just days before a July 2 planned reopening—has gambling operators scrambling to meet the new requirements in time for the July 4th weekend. The Borgata Casino Hotel & Spa has decided to delay its planned re-opening. The casino was to host only invited guests for four days over the holiday weekend and open to the general public July 6. But with the new restrictions, those plans have been put on hold, and the casino remains closed until further notice.

In a statement MGM Resorts International, Borgata’s parent company, explained the decision:

“We respect the Governor’s decision to postpone the reopening of indoor dining in New Jersey to protect the public. Given this decision, our property Borgata Hotel Casino & Spa in Atlantic City will remain closed. Our guests expect a special experience when they come to our property and if we cannot provide that level of hospitality, we feel it best that we remain closed until such time that the Governor lets us know it is safe to offer food and beverage. The health and safety of our employees and guests are at the center of all that we do, and we regret that, at this time, we are unable to welcome back the thousands of employees who are anxious to return to work. We look forward to a time when it is safe to welcome everyone back.”

Murphy made the decision to suspend indoor dining at a limited capacity over a lack of public adherence to social distancing and face mask policies. The governor has also banned the service of any beverage, including alcohol, on gaming floors or at indoor bars, and has banned smoking.

The news comes as the shore town was gearing up for a return to business for possibly the most important weekend of the season. Murphy ordered casinos closed back in March to curb the spread of the coronavirus. The recent spike in cases has led to more precautions, including a 14-day quarantine travel advisory for New York, New Jersey and Connecticut for any persons coming in from a state with a high-positive rate of the virus. How the tri-state area will enforce the rule is still not clear.

“All of the casino operators are in the same boat and are still waiting for official guidelines in regards to reopening,” Tom Pohlman, general manager of Golden Nugget, wrote in an email to loyalty program card members. “This is a very fluid situation and we continue to adapt as we receive new information.”

Atlantic City’s casinos are permitted to resume business at 25% capacity on July 2. The reopening schedule for all casinos are as follows:

Golden Nugget, Hard Rock Hotel & Casino Atlantic City, Ocean Casino Resort, Tropicana Atlantic City and Resorts Atlantic City are scheduled to reopen Thursday, July 2.

Bally’s Atlantic City, Caesars Atlantic City and Harrah’s Resort Atlantic City will open to invited guests on July 2 before opening their doors to the general public the next day.

Borgata Hotel Casino & Spa closed until further notice.

The Federal Trade Commission last week gave its approval to the Caesars-Eldorado deal, valued at $17 billion. The OK was given after Eldorado sold two of its properties, the Montbleu in Lake Tahoe and the Eldorado Shreveport to Twin River Holdings for $155 million, a condition of the approval.

The FTC nod means that only three regulatory bodies, the gaming boards in Indiana, Nevada and New Jersey, need to be obtained before the deal goes through. Indiana is scheduled to hear testimony on July 10 but nothing has yet been schedules in Nevada or New Jersey.

The complicated deal was first announced in June 2019, but faced a lot of obstacles, including Covid-19. Eldorado CEO Tom Reeg has worked tirelessly to sell properties in competing markets to obtain regulatory approval and raised more than $7 billion to get the deal done.

The FTC approval wasn’t without its difficulties. The board approved it in a 3-1-1 vote, with one member absent. Dissenting member Rohit Chopra said he was concerned because the deal to sell Montbleu and Eldorado Shreveport wouldn’t close right away.

“I am concerned that the commission is rolling the dice with this complex settlement that will clearly not lead to an immediate restoration of lost competition,” Chopra said.

It’s “all systems go” in Nevada after the state Gaming Commission took the first baby steps toward establishing a cashless wagering process when it changed and approved several regulations. The prohibition against using such systems was the first to go which opens the door to beta tests for systems developed by various manufacturers.

The commission unanimously approved eight regulations that will make it easier for players to establish accounts, create e-wallets and buy tickets to gamble at the state’s slot machines. The tickets, such as Everi’s QuikTicket, are purchased at kiosks with a set amount and can be used at slot machines and tables, and maybe later restaurants and retail.

“It’s a monumental first step in cashless wagering systems,” Commissioner Steve Cohen said.

Acting Commission Chairman John Moran said the changes will be good for the industry and for the patrons, saying it will “enhance the gaming experience.”

Direct transfers from patron’s bank accounts to gaming machines will still be prohibited, but several systems envision transfers to a second account—an e-wallet—can then be transferred to gaming devices. Any winnings would then be transferred back to the e-wallet.

Gaming Control Board officials noted that the use of e-wallets will allow a transparent view of the money used to gamble should investigations be required.

The three-month closure of casinos in Atlantic City did more than cripple the bottom line for gaming companies. It also hurt the state and local programs that depend on healthy casino revenues.

The Casino Revenue Fund, financed by a tax on gaming revenues, pays for a variety of programs for senior citizens and disabled residents, including pharmaceutical assistance, the community care program, food distribution, medical and public transportation and emergency housing needs.

The total estimated loss to that fund due to the shutdown is $94 million—$63.8 million from casino taxes, and the balance from the loss of hotel room fees and promotional gaming credits.

“The state is going to need help from the federal government to plug a lot of budget holes if we are going to fund these programs like we did in past budgets,” Assemblyman Vince Mazzeo, who was just reappointed to the fund’s advisory board, told GGB News.

Atlantic City’s nine casinos took in almost $86 million in May, nearly all from online operations. While that figure jumped 124 percent from the same month last year, the overall revenue numbers fell 65 percent compared to May 2019. Sports betting generated less than $10 million for the casinos and two racetracks.

On June 15, the state Senate approved a series of tax breaks for the casino industry, according to the Press of Atlantic City—among those breaks, a reduction in the amount of money dedicated to the Casino Revenue Fund.

While some lawmakers expressed reservations about both the optics of pumping money into casino corporations and the impact on the fund, other senators said otherwise.

“My concern has been and remains with the families who overnight found themselves unemployed and left to deal with a broken unemployment system for the last three months,” said Senator Chris Brown, a Republican who serves the New Jersey’s 2nd Legislative District, which includes Atlantic City. “Working in a bipartisan manner, we took a step toward saving 27,000 casino jobs while also assisting our small businesses so we can put our Atlantic County families back to work.”

Senate bill S2400 cuts gaming revenue taxes for one year, beginning from the date the nine casinos reopen. It also eliminates hotel fees through 2020, defers certain licensing fees and permanently allows for a 100 percent deduction of provisional gaming credits and coupons against gross revenues. The bill also allocates $100 million of Covid-19-related federal grant money to the state Economic Development Authority for small business assistance.

The bill includes an amendment that decreases the time casinos can receive a reduction in gaming revenue taxes, and could reduce the amount of casino-related taxes and fees paid to the state and the Casino Reinvestment Development Authority (CRDA).

That agency gets funding from a host of tourism-related services, all of them shredded by the closures of casinos, hotels and restaurants and bars. Here’s a breakdown:

• $2 per night room fee funds the Convention Center Division budget, minus the Urban Revitalization Program funds
• $3 per night room fee funds repayment of hotel room bonds and to a minimum extend, the CRDA operating budget
• $3 of parking fee allocates 50 cents for the Casino Revenue Fund while $2.50 pays down CRDA debt service
• 25 percent of gross revenues go towards non-gaming expansions/improvements, as well as CRDA project funding, but now redirected to Atlantic City to help pay down its debt
• Luxury tax collected from casinos and non-casino entities, which includes a 9 percent hotel tax, a 3 percent tax per alcoholic drink and 9 percent entertainment per ticket tax. These taxes pay for bonds as well as operations maintenance and promotion of the Convention Center and Boardwalk Hall, and funding for Meet AC, the former convention and visitors authority

The bill could reduce the amount of casino taxes and fees paid to the state and CRDA by more than $225 million over a two-year period, according to the Press. The agencies that still get their money are the ones that regulate the industry: the Casino Control Commission (CCC) and the Division of Gaming Enforcement (DGE).

“We anticipate the closings will have minimal impact, as the casino industry continues to fund the regulatory expenses of the DGE and CCC,” DGE spokesman Leland Moore told GGB.

The first casino to be hit with a Covid case after reopening has closed, along with two of its sister properties.

Arizona’s Gila River Community announced its three casinos, Wild Horse Pass, Lone Butte, and Vee Quiva—closed at 2 a.m. on June 18. The casinos reopened in mid-May after being closed for two months due to the lockdown.

Security guard Robert Washington, 68, died of Covid-related illness on June 11, after returning to work in mid-May when most Arizona casinos reopened. According to the Arizona Republic, Washington had complained about the guests, most of who didn’t wear masks or practice social distancing. Washington suffered from diabetes and had recently recovered from pancreatic cancer. As such, he fits the profiles of Covid-19 deaths, which almost always have other immune system weaknesses related.

Tribal officials said the three casinos would close down for two weeks. During that time the tribe will “reassess its current safety standards” after evaluating its safety plan with the Gila River Indian Community Council. The tribe said it would seek “feedback from its community and team members,” as well.

When casinos reopened there were some expectations that some team members may contract the virus. Most expected to handle it by isolating those diagnosed and contact tracing the employee’s movements and test anyone who worked with or came in contact with the member. But Washington’s death, relatively suddenly, has apparently changed that strategy. The tribe has not announced if other employees have contracted the virus or how they were handling anyone who can in contact with Washington.

Gila River Governor Stephen Lewis released a statement that the temporary shutdown will help protect casino employees and customers, as well as those who live in the Gila River community.

“Like our sister tribes and businesses all over Arizona, we have tried to do what is best for all, while processing new information and new guidelines about the pandemic with little in the way of definitive guidance,” he said.

New York’s commercial casinos and racinos are not among the businesses that have begun reopening across the state.

Unlike their tribal competitors, which are not bound by state law and have been gradually resuming operations since mid-May, the 12 casinos and racinos are still waiting for the go-ahead from the administration of Governor Andrew Cuomo to get back in the fray.

According to former Lieutenant Governor Bob Duffy, who is advising Cuomo on the reopenings, “Areas such as the malls, gyms, movie theaters, casinos, will not open on the first day of Phase Four, but will open at some time during Phase 4,” as the current round is known.

Phase 4, however, has no specific timeframe, unlike the two-week periods for the previous three phases.

“Phase 4 could last two months, it could last three months,” Duffy said. “There won’t be a Phase Five, so it’s going to be a gradation of certain activities just based on some of the research and feedback that the state is getting. And, really, it’s the measurement of these activities, region by region.”

The Oneida Indian Nation’s three central-state casinos have been open on a limited basis since June 10. The Seneca Nation’s three casinos Buffalo, Niagara Falls and Salamanca began reopening in phases on June 18. The small Lakeside Gaming slots venue run by the Cayuga Nation in Union Springs has been open since mid-May.

Meanwhile, the commercial operators, which have been closed since mid-March, have no choice but to wait.

“We had hoped to be able to open by July 4,” said Jeff Gural, who owns Tioga Downs Casino Resort, a full-scale gaming facility near Binghamton in the Southern Tier, and the racino at the Vernon Downs harness track in Oneida County east of Syracuse. “There are people who are waiting for the casinos to reopen. I know the governor is prioritizing health and safety, not economics, and I applaud that, but it makes sense to reopen as soon as we can.”

It’s not just the tribal competition in New York that concerns him, he told the Syracuse Post-Standard.

“People who like to gamble are going to go to the casinos they can find. That’s their mentality. So they’re going to travel to these places in other states, and perhaps they’re exposed (to the virus). Then they come back here. We don’t have a big problem here, and we’re going to follow all the guidelines issued by New York state. But we don’t need people bringing back anything from Wilkes-Barre (Pennsylvania) or Atlantic City.”

At del Lago Resort & Casino in the Finger Lakes region, General Manager Lance Young told the Post-Standard his property will be prepared when the big day finally arrives.

“Del Lago Resort & Casino continues to plan for a safe reopening that protects our employees, customers and the general public. We have developed a comprehensive reopening plan, with input from various stakeholders, that meets or exceeds CDC and OSHA guidelines. We are ready to reopen upon state approval.”

Tiverton Casino was closed for three months, and although it has started to reopen, the town of Tiverton, Rhode Island is not getting the money that the casino normally pays the town out of its profits.

The city is reworking its budget and a making new tax levy to make up for the loss of the money. It also doesn’t plan to include casino revenue for the upcoming fiscal year because of the uncertainty of whether there will be a second wave of the coronavirus that might cause Twin River Tiverton Casino Hotel to cease operations again.

The casino normally pays the city $3.1 million. It had only been paid $1.2 million in mid-March when the pandemic caused both casinos in the state to close.

The town thought that it was guaranteed the money from the state if the casino closed, but later found out that wasn’t true.

Each year in May the voters of Tiverton vote on the new city budget in a referendum. This year the town council did not want to do that without knowing how much money it will get from the state for the next fiscal year.

Lawmakers in Pennsylvania are reconsidering a bill to legalize video gaming terminals in the state’s bars and restaurants as tavern owners and restaurateurs struggle to recover from state-imposed shutdowns due to the Covid-19 pandemic.

Lobbyists for tavern owners, VGT manufacturers and route operators lobbied hard but were unable to get bar VGTs a place in the major gaming expansion bill signed into law in 2017. That law did add VGTs to truck stops, but the revenue and taxes those locations generate is a fraction of what would be possible with a VGT law in the style of Illinois or Montana. Ultimately, the casino lobby won out and VGTs were dropped from the bill.

Now, the issue is being revived both to help small businesses and to bring back some of the tax revenue lost to the brick-and-mortar casino shutdown.

“I think the expansion that we’re seeing is being pushed by the desire to kind of find another revenue source for the commonwealth,” Democratic state Senator Tim Kearney of Swarthmore told the Delco Times. “It’s been an issue that’s been batted around for years, and there’s all sorts of different definitions about what a ‘game of chance’ is and what the VGTs actually do and everything else, and there’s really strong feelings on all sides.”

Republicans controlling the state Senate also are pushing for a new VGT bill, a subject that has caused some controversy. Senate President Pro Tempore Joseph Scarnati has received significant campaign contributions from Golden Entertainment, one of the nation’s top route operators for VLTs.

With Golden standing to be one of the bill’s main beneficiaries, some lawmakers have criticized Scarnati’s push for an early vote on the VLT bill.

Proponents of VGTs say they would replace gray-area machines that have been unregulated in the bars for years, as well as addressing the so-called “skill machines” that are considered illegal in Pennsylvania by the courts, but proliferate due to well-financed manufacturers and a lack of enforcement.

VGT suppliers and operators are once again lobbying for the legislation. Rick Meitzler, CEO of Illinois-based slot and VGT supplier Novomatic Americas—and a board member of the Pennsylvania Video Gaming Association, VGT lobbying group, told the Times that the Illinois VGT industry has taken in $2 billion of revenue since 2009, and has helped small businesses produce anywhere from $40,000 to $500,000 annually in extra income.

“That really became a nice little added bonus to them that they could revitalize their bars, put some money into them, and it became a viable option for them,” Meitzler said. “And whatever their getting, the state’s getting the same, or about the same, so the state’s happy, bars are happy and obviously manufacturers like us are happy for providing games to a regulated market.”

Not unexpectedly, Pennsylvania’s casino licensees were among the first to oppose the new VGT push, which they say would include legalization of the unregulated “skill games” still flooding the market.

“We are shocked and alarmed by the persistent speculation that the General Assembly is considering an expansion of gaming to include both broad-based VGT gambling throughout communities and the legalization of currently illegal skill game slot machines that are being operated outside of our facilities,” 13 licensed casino owners and operators wrote in a letter last week to legislative leaders. “The legislature determined that such broad-based gaming expansion would have had a devastating impact on both Pennsylvania’s casinos and the Pennsylvania Lottery. This is even more true today.”

The Arkansas Racing Commission on June 18 awarded the state’s fourth and final casino license to Mississippi-based Gulfside Casino Partnership for a proposed $254 million casino resort in Pope County. However, the other contender for the license, a $225 million casino resort proposed by the partnership of the Oklahoma-based Cherokee Nation and Dallas Cowboys owner Jerry Jones’ Legends Hospitality, alleged bias scoring by Commissioner Butch Rice. The commission’s decision has been referred to the Arkansas attorney general.

An affidavit submitted by Cherokee Nation Business Counsel Dustin McDaniel alleges Rice “consistently attempted to protect Gulfside Casino Partnership from facing competition in an effort to award them a license by default.”

Rice gave Gulfside’s bid a perfect score of 100 and CNB’s bid a score of 29. Rice’s 71-point scoring difference gave Gulfside the victory with a total score of 637-572.

Rice said he conducted an objective evaluation of the competing proposals and he wasn’t biased toward Gulfside. He said he believes Gulfside is a better fit for the Pope County casino since Gulfside wants to build a larger casino than CNB, meaning more jobs and more tax revenue.

Rice said, “It is almost like comparing apples and oranges when comparing job creation and tax revenue. The job creation was big to me, and that’s what Gulfside proved, and that’s what the people of Pope County would have been looking at.”

McDaniel said Rice’s scores must be eliminated—giving CNB a higher point total. “Despite the AG’s office expressly warning commissioners not to engage in arbitrary, capricious or biased scoring, Commissioner Rice in fact single-handedly overturned the score given by the rest of the commission.”

He added, “We anticipate both an administrative appeal and a request for injunctive relief from a court. This is a uniquely significant state decision, and such an egregious act of bad faith should not be allowed to control it.”

Commissioners faced three options: 1) excluding Rice’s scores; 2) restarting the scoring process; or 3) bringing in an independent consultant. With Rice absent, on June 22 the commission instead voted that Gulfside and CNB must meet with the attorney general’s office to seek “common ground on a solution,” commission spokesman Scott Hardin said. “This will have to be determined fairly quickly as a letter was issued to Gulfside on Friday announcing the intent to award the Pope County casino license. The commission has 30 days from the date the letter is received to formally issue the license. Prior to the end of the 30-day period, the commission should have feedback following meetings with both parties.”

Commission Chairman Alex Lieblong said he hoped the meeting of attorneys could give the commission a “game plan.”

In November 2018, Arkansas voters approved Amendment 100, allowing expanded casino operations at Oaklawn Racing Casino Resort in Hot Springs, Southland Casino Racing in West Memphis and new casinos in Pope County and Jefferson County, where the Quapaw Nation’s $350 million complex is under construction .

The deputy attorney general for state agencies, Butch Reeves, warned the commission at the outset to make sure there were not major differences between the scores.

“If you give somebody 30 and then the next party zero, your score is considered arbitrary and can get us in trouble,” he said.

Like miniskirts and sensible shoes, indulgence and prudence aren’t usually spotted at the same parties. And Las Vegas never needed to make friends of the two until now.

That’s where the Las Vegas Convention and Visitors Authority (LVCVA) and its go-to ad agency, R&R Partners, came in. They have crafted an initiative titled #VegasSmart that’s now hitting social media with a video campaign that manages to convey an urgent message about personal safety with energy and humor.

It’s the hallmark of a fruitful partnership the LVCVA has enjoyed with R&R going back to the now-iconic “What Happens Here Stays Here” campaign.

“When you think about the past year, things have been very dynamic, right? For us, it’s been necessary to be flexible and to be able to pivot and adjust the message with events,” H. Fletch Brunelle, vice president of marketing for the LVCVA, told GGB News.

That’s no easy task these days. To start, Brunelle explained, a year or so ago the LVCVA began retooling “What Happens Here Stays Here,” looking for something new, restorative and inviting in the aftermath of the 2017 mass-shooting on the Strip.

As the partners discovered, the theme had grown dated in the brave new world of Facebook, Instagram, YouTube, WhatsApp, WeChat, Tumblr and Twitter, in which people, younger people especially, want to broadcast their experiences, not conceal them.

The result was “What Happens Here Only Happens Here,” a campaign that turned the focus away from vignettes of secretive adult misbehavior to showcase the scope and variety of attractions the city has to offer. An array of multimedia messages was set to kick off with a TV commercial that ran during the Grammy Awards on CBS on January 26.

Then everything went on hold with the death of Kobe Bryant and his daughter in a helicopter crash the day before the telecast. It was sensitivity to the former L.A. Lakers star’s ties with Southern California, a major source of visitation to Las Vegas, that sealed the decision, Brunelle said.

After that came the Covid-19 pandemic, and with it, the ultimate test for the creative powers of the LVCVA and R&R. “What Happens Here Only Happens Here” was filed away once more.

“The No. 1 priority is health and safety,” said Brunelle. “For us, in terms of marketing strategy, we need to continue to understand our key origin markets, but we want to make sure people stay safe in the destination.”

On May 18, two months into the lockdown, the strategy surfaced with a social media initiative tagged “OnlyVegas” and a 30-second TV spot constructed around the catchphrase “A new Vegas for a new reality.” It set an emotional stage for the city’s reopening, with visuals centering on a handsome couple enjoying a romantic getaway on the Strip—mostly evening scenes, with shots of the city skyline and beneath it, a woman’s voice, warm and reassuring: “The world has changed, and Vegas is changing with it. So yes, things will be a little different when we open again. At least for a while.”

But, she promises, the experience is going to be better than ever. “So if you ever imagined a Vegas that’s just for you, it’s only here. And when it’s ready, you’ll be the first to know.”

That was followed by the countdown to June 4, when the city’s casinos were permitted to reopen. When the big day arrived, the LVCVA was ready, with a commercial spot that opens with a suited man in silhouette who approaches an industrial-looking power switch, throws it, and rekindles the “Welcome to Fabulous Las Vegas” sign. As the rest of the resorts light up on the Strip, two simple words flash into the frame: “Now Open.” Fade to black.

“The Light,” as it’s called, was slated to run nationally on network and cable channels, but once again, the unforeseen happened, and the commercial was pulled when street protests erupted nationwide over the death of George Floyd, an African American in police custody in Minneapolis.

As Brunelle explained, “When we saw things throughout the country, saw what the national conversation was, we knew we needed to be respectful of what was happening.”

By that point, though, the LVCVA was ready with the core message it wanted to convey under the #VegasSmart rubric, with highlights that include a pair of 30-second videos posted on the agency’s website and on social media that aim to cover the demographic gamut.

The first depicts masked employees cheerfully going about their jobs𑁋front desk clerks, housekeepers, bartenders, doormen and bell hops𑁋while overtop roll the words: “We’re happy to see you again. We’re doing what we can. To ensure you can do everything without worrying about anything. Now let’s get back to the Vegas we know and love.”

The second consists of speeding aerial views of the Strip with a heavy-metal soundtrack and the words: “We know it’s been a while. But guess who’s back. Welcome back to Las Vegas.”

The balance of the initiative enlists celebrities for a series of lighthearted messages that work in a way that’s direct and personal:

“How To Be Vegas Smart” begins one 10-second spot featuring a Cirque de Soleil character arched in a handstand over a sink: “Say ‘Vegas Baby’ 20 Times While Washing Your Hands.”

One spot stars magician Jen Kramer, who flips over a jack of diamonds whose faces change, each now wearing a mask. Another spot features illusionist Shin Lim, who out of nowhere makes a mask appear on his face. In another, comedian Carrot Top fumbles to don a tie-dyed face covering over horn-rimmed glasses, and when he’s finally got it on, says, “I think I look a lot better in a mask.”

Brunelle said the LVCVA will continue to work with R&R to “tweak” the message. “We’re in the reopening phase right now, and we will adjust.”

The next phase, with a new message—a post-reopening message, if you will—is already on the drawing board, and likely will be unveiled the end of July or early August.

“We’re always keeping a beat with our customers’ thinking,” he said. “We’re always in development.”

Gaming tribes in California, Connecticut, Oregon, New York, Florida, North Carolina and other states defied their governors who advised them against reopening their casinos too early due to Covid-19 concerns.

That amounts to 315 casinos out of 524 tribes, or about 60 percent. They range from the Mashantucket Pequot and Mohegan tribes in Connecticut to the Oneida Indian Nation in New York, to dozens of tribes operating casinos in the Golden State.

Tribal nations are considered sovereign and so don’t fall under the jurisdiction of state governments. Many governors issued executive orders banning large gatherings, including at casinos. But pressures created by the lack of revenues and widespread unemployment proved to be the dominant argument for reopening in most cases.

In South Dakota, tribes set up checkpoints to discourage visitors from out-of-state. In Connecticut, the state Department of Transportation put up signs to discourage motorists from visiting Mohegan Sun and Foxwoods, warning, “Don’t Gamble With Covid,”’ but it doesn’t seem to have had much effect. The casinos opened June 1 with 25 percent occupancy.

Nevertheless, Governor Ned Lamont defended his tactics. “People over the age of 65 should not be in large settings. We think that’s dangerous, even now. So, we tried to put some good, strong advice in place as people are on their way to taking a gamble.”

Mashantucket Pequot Tribal Nation Rodney Butler countered, “I have tribal elders that I’m concerned about. I’m not going to put my community at risk. We’re doing this very, very cautiously and with every safety precaution in mind.” Some tribes implemented clear plastic screens and sneeze guards to protect players and employees.

New York Governor Andrew Cuomo, who imposed some of the strictest lockdown measures in the nation, said tribal casinos are an exception. “Tribal nations are just that, they’re nations. So they are not bound by state laws,” he said. Commercial casinos remain closed in the Empire State, but the Oneida Indian Nation partially opened three casinos last week.

California Governor Gavin Newsom’s warnings that the “virus does not recognize jurisdictional boundaries” largely fell on deaf ears.

Although Florida Governor Ron DeSantis didn’t try to take on the state’s gaming tribes, Miami-Dade Mayor Carlos Gimenez attacked Miccosukee Resort & Gaming on social media for reopening earlier than other businesses. He also urged senior citizens to stay away from the casino.

Danielle Her Many Horses, deputy executive director of the National Indian Gaming Association, commented about the national trend: “You have tribes in states that do want to open up and tribes that are like, ‘No, no, no, we’re going to back off on this because we don’t think that’s the right idea,’” she said. “And you have others who are like, ‘We need to get our people working,’ who are thinking of it in terms of rebooting the economy.”

Washington Governor Jay Inslee worked very closely with the state’s tribes, meeting with them regularly, she pointed out.

On the other hand, when several Sioux tribes in South Dakota set up checkpoints along state and federal highways, Governor Kristi Noem balked. “If the checkpoints are not removed within the next 48 hours, the state will take necessary legal action,” she wrote.

Fremont Street’s new Circa resort will be off-limits to anyone under 21 when it opens in October.

The first ground-up resort to come to Downtown Las Vegas in decades announced the policy on Twitter.

“Once, Las Vegas held a certain mystique as this fabulous place where only grown-ups could play,” the message states. “Call us old-fashioned, but we think adults need some of that mystique back in their lives.”

Developer Derek Stevens later verified the post in a direct message, joking, “Circa was expensive to build and we couldn’t afford the arcade LOL.”

He said his other Downtown properties, the Golden Gate and the D Las Vegas, will continue to allow guests with children.

The last Las Vegas casino that sought to bar minors as a matter of policy was Steve Wynn’s Bellagio, which opened in 1998 at a time when the era of the so-called family-friendly Las Vegas was coming under mounting criticism. Wynn initially banned strollers from entering the Strip resort, but this was relaxed after guests made it known they wanted their children to see the floral displays at property’s popular Conservatory.

When MGM Resorts International bought out Wynn’s Mirage Resorts in 2000, the policy was quietly allowed to lapse.

In Nevada, gaming revenues have been surprisingly robust since casinos reopened June 4, following a three-month closure due to Covid-19. One caveat: these customers seem to be primarily locals and Californians who are driving in to Nevada.

Mike Lawton, senior research analyst at the Nevada Gaming Control Board, pointed out that two key demographics are missing. “There’s not a lot of high-end play,” he said. “And the big piece missing is that convention business, that corporate customer.”

Reno, Carson City and Lake Tahoe are down by less than 20 percent, he said, although 90 percent of the gaming businesses have now reopened, with the remainder expected to be operating by the July 4th holiday. About 59,000 slots, 2,020 table games and 186 card games are currently open in the state. Casino restaurants and the casino floors are limited to 50 percent capacity. There is no such rule for hotel rooms.

Snapshot: Caesars’ Performance

Caesars Entertainment estimates that revenues for the first week of casino reopenings in Nevada came in about 58 percent below the same period last year. The preliminary results for June 4-10 were released in a filing in conjunction with balance sheet-boosting moves announced by Eldorado Resorts ahead of its $17.3 billion acquisition of Caesars, which is expected to close in July.

The five properties in the filing𑁋Caesars Palace, the Flamingo Las Vegas, Harrah’s Las Vegas, the Linq casino and Linq Promenade and Harrah’s Lake Tahoe𑁋generated operating income that was down between 110 percent and 120 percent versus last year. Adjusted cash flow was down 70 percent to 80 percent.

All five properties are operating under state-mandated restrictions on slots and table games, a 50 percent limit on capacity and with no live entertainment.

Six regional casinos Caesars casinos reopened beginning May 18: Harrah’s Bossier City and Harrah’s Louisiana Downs in Louisiana, Harrah’s Gulf Coast and Horseshoe Tunica in Mississippi, Horseshoe Council Bluffs in Iowa and Harrah’s North Kansas City in Missouri. Revenues there were either flat or up slightly against last year. On a more promising note, operating income at the six increased by 60 percent to 70 percent, while adjusted cash flow was up 35 percent to 40 percent.

In the Heartland

The numbers are sparse for now, but continue to file in. In Arkansas, for example, casinos reopened May 18 at one-third capacity with limited gaming options. The Arkansas Racing Commission released revenue figures from May 18 through May 31, and based on slots only, the data show Oaklawn Racing Casino Resort in Hot Springs posted $52.6 million in wagers and a $4.6 million house win before taxes, compared to $157.4 in wagers in February.

For the 14-day period in May, Southland Park Gaming and Racing in West Memphis posted $92.1 million in slots wagers and $7.2 million in house win, compared to $303.4 million in wagers in February.

And Saracen Casino Resort in Pine Bluff posted $14.5 million in wagers and nearly $1 million in house win, compared to $65 million in wagers in February.

Still, daily wagers placed in May exceeded 33 percent of daily average in February, with 47 percent at Saracen, 63 percent at Southland and 69 percent at Oaklawn.

Way Down South

Louisiana’s 14 riverboat casinos and three racinos produced $70.4 million in May, down from $218 million in May 2019, according to figures released by the Louisiana Gaming Control Board. Video poker revenue fell by 56 percent to $23.9 million compared to $54.2 million in May 2019. Riverboat casino admissions totaled 432,612 people for May, a 75 percent drop from the 1.75 million admissions for all of May 2019.

The numbers are similar to those from March, when casinos closed March 17 and revenue fell 58 percent from $23.6 million in 2019 to $10 million.

However, Louisiana Casino Association Executive Director Wade Duty said the two-week May results were encouraging, since the volume of gamblers was down only 13 percent compared to the same period in May 2019. “Turnout was greater than what we were expecting. Understandably, folks are cautious,” he said, “but the casinos are trying to balance a lot of regulatory and health care concerns.”

Most riverboat casinos, racinos and video poker parlors reopened at 25 percent capacity on May 18. Harrah’s New Orleans reopened Saturday, June 13. For the 13-day reopening period in May, Baton Rouge’s riverboat casinos generated $7.5 million, or 36 percent of the $20.6 million they posted for the full month of May 2019.

Hollywood Casino Baton Rouge revenue fell 58.5 percent to $2 million in May, compared to $4.7 million one year ago. L’Auberge Baton Rouge dropped 63.1 percent from $13.2 million to $4.9 million. And revenue at the Belle of Baton Rouge declined 76.5 percent from $2.6 million to $617,758.

Due to the closures of Harrah’s and the Fair Grounds, New Orleans casino market revenue dropped 87.5 percent in May, from $54.5 million to $6.8 million. The riverboat market fell 72.1 percent from $24.3 million to $6.8 million.

Boomtown revenue dropped 61.9 percent, from $10.3 million to $3.9 million. At Treasure Chest, which reopened two days after most of the other Louisiana casinos, revenue declined 75.5 percent, from $9.9 million to $2.4 million. Revenue at Amelia Belle, which reopened more than a week after the other riverboats, dropped 89.6 percent, from $4.1 million to $423,715.

The Lake Charles market posted the smallest decrease in Louisiana, with revenue down 56.9 percent. Revenue at the market’s three riverboat casinos and the slots at Delta Downs fell from $77.8 million to $33.5 million in May.

The Shreveport market had one less riverboat this year than in May 2019; its revenue dropped 64.5 percent, from $57.5 million to $20.4 million. And Acadiana, made up the slots at Evangeline Downs, decreased 70.8 percent, from $7.7 million to $2.3 million.

The May 2019 revenue figures also included the Diamond Jacks riverboat casino in Bossier City, which announced it would permanently close due to the impact of the pandemic.

While no tribal casinos reveal their revenue numbers this quickly, anecdotal evidence indicates that the casinos in California, Arizona and the northwest have welcomed good crowds, albeit smaller numbers than normal. The tribes are using the same health and safety stipulations found at commercial casinos. Most California casinos are requiring masks.

Churchill Downs Properties Reopen

Kentucky-based Churchill Downs’ properties in five states began reopening on Friday, June 12, bringing seven of the company’s 10 gaming properties back into operation. Chief Executive Officer Bill Carstanjen said, “We are grateful to our teams who have ensured smooth, safe and successful reopenings over the past month and to our returning guests who have enthusiastically adapted to new protocols

First to reopen were Calder Casino in Miami Gardens, Florida and Lady Luck Casino Nemacolin in Pennsylvania, followed by the Fair Grounds Racecourse & Slots in New Orleans; the company’s 12 off-track betting locations in Louisiana reopened on May 18. Ocean Downs Casino in Maryland and Miami Valley Gaming in Ohio reopened June 19.

Each property will operate under specific capacity restrictions in compliance with state and local requirements. All Churchill Downs properties will operate under state and local restrictions and comply with company guidelines, Carstanjen said, including maintaining social distancing, mandatory face masks and enhanced cleaning.

Fitch’s Forecast

Overall, Fitch Ratings Services is predicting that full recovery from the Covid-19 crisis for the casino/hospitality industry will not happen until 2023 at the earliest.

In a statement published by CDC Gaming Reports, Fitch gaming analyst Alex Bumazhny said it will be 2023 before the casino industry completes what he called a “U-shaped” recovery, regaining revenue and cash flow levels seen before the Covid-19 crisis. Bumazhny predicted a 30 percent drop in revenues for regional markets in 2020, and 45 percent for the Las Vegas Strip.

“Generally, Fitch is forecasting a roughly three-year recovery to pre-pandemic levels for the gaming sector,” Bumazhny said in the statement. “Recovery will be the slowest on the Strip, given its greater reliance on inbound visitation, air capacity, and conventions. Regionals are less cyclical than Las Vegas and should recover quicker, as they have mostly local, drive-in visitation.”

The statement follows a June 11 report from Fitch Ratings on the hotel sector, which it predicts will see a revenue decline of 60 percent per available room (RevPAR) in Europe in 2020, and no recovery to pre-crisis levels until at least 2023. It also predicts the leisure travel, regional areas and budget hotel categories to rebound faster than the business travel, urban destinations and upscale categories.

Meanwhile, consultancy H2 Gambling Capital has downgraded its prediction on the cumulative effect of the pandemic on the global gaming sector for this year, reporting likely revenues of $362 billion, which is lower than the figure for 2011.

“The gambling sector has been hit harder than most, or at least significantly harder than the current IMF GDP expectations, as its share of global GDP is set to fall from 0.5 percent last year to c0.38 percent this year,” H2 said in its report. In the mid-2000s, this was in the range of 0.60-0.65 percent.

H2 added that average gross win per adult is now estimated to come in at $72 this year, down from $91 in 2019, at “a level not seen since 2004.”