Author: Casino Connection Staff

Hard Rock Buys Back Vegas Brand

Hard Rock International (HRI) has purchased the Hard Rock Las Vegas name and the intellectual property rights associated with it, paving the way for a possible revival of the iconic brand as a Las Vegas gaming resort.

The deal between HRI, which is owned by Florida’s Seminole Indian tribe, and Houston-based private equity firm Juniper Capital gives HRI full and exclusive rights to the Hard Rock Las Vegas name including memorabilia, signage, merchandise, affiliated restaurant and entertainment trademarks and internet domain names.

Jim Allen, HRI chairman and CEO of Seminole Gaming, indicated the company views the purchase as a springboard for expanding the tribe’s empire to Las Vegas, which was home to the original Hard Rock casino.

“This agreement marks an exciting chapter for Hard Rock, in Las Vegas and beyond,” he said. “We look forward to the opportunity of enhancing our presence in Las Vegas, which will always be one of the most iconic entertainment markets in the world.”

HRI is looking at Las Vegas at what could be an especially propitious time, with Eldorado Resorts expected to shop some of Caesars’ eight Strip resorts, and real estate investment trust Gaming and Leisure Properties reportedly looking to sell the Tropicana. With the city and its No. 1 industry laid low by the Covid-19 pandemic, it’s possible Hard Rock will be walking into a number of favorable scenarios in terms of valuations.

“The Hard Rock brand is about as iconic as it gets, and its mark on the Las Vegas landscape is indelible,” Josh Swissman of the Strategy Organization told industry newsletter CDC Gaming Reports. “You couple that with a sharp management team and what could be reasonably priced Strip assets for sale in the near future and you have and you have a compelling case to bring back the casino brand that paved the way for catering to a coveted younger demographic. They likely have the balance sheet to pull this off as well.”

The Seminoles have owned the name and the assets of Hard Rock’s gaming, hotel, restaurant and retail holdings outside Las Vegas since 2007, a constantly expanding portfolio that currently stretches across 74 countries and encompasses casinos in Tampa and Hollywood, Fla.; Biloxi; Lake Tahoe; Sacramento, Calif.; Sioux City, Iowa; Tulsa, Okla. and most recently in Atlantic City with the 2017 purchase and rebranding of the shuttered Trump Taj Mahal. HRI also owns casinos in Ottawa and Vancouver and Punta Cana In the Dominican Republic.

The original Las Vegas Hard Rock was a groundbreaking venture when Hard Rock co-founder Peter Morton opened it in 1995 just east of the Strip on Harmon Avenue𑁋the first casino to specifically target a younger demographic with a fully themed rock ‘n’ roll ambience.

Morton later sold off most of the company, with the majority of the international assets winding up in the hands of UK media and gaming giant Rank Group, and thence to the Seminoles, and the 1,500-room Las Vegas Hard Rock landing in 2006 with Morgans Hotel Group, which sold it in 2011 to partner Brookfield Asset Management.

From Brookfield it went to its current owners, a joint venture between Juniper Capital and Richard Branson’s Virgin Group, which purchased it in 2018 for $500 million and closed it for conversion to a Virgin-branded hotel slated to debut later this year with a casino operated by Connecticut’s Mohegan Indian Tribe.

Nevada Casinos Still On Waiting List to Reopen

Several of Las Vegas’ major casino operators are getting their reopening plans in order, but it’s still not known when Governor Steve Sisolak will clear gaming in Nevada to resume business.

It appears the casinos will fall into what’s designated as Phase 4 of the state’s reopening schedule, which means they could remain closed until the end of this month and possibly until June. Sisolak’s OK of Phase 2 has yet to occur, as has his definitions of what could open in each phase.

Phase 1 commenced Mother’s Day weekend after the governor said the state “met our gateway benchmarks” for a resumption of business, including a declining percentage of positive Covid-19 tests, a decrease in virus-related hospitalizations and ramped-up capacity for testing and handling a possible surge in hospitalizations.

He cautioned, “The beginning of our reopening of our economy is not the end of the coronavirus. The coronavirus is still with us, as strong as ever.”

As such, those business that are reopening under Phase 1 are doing so under strict state-mandated capacity limits and a number of health and safety requirements that include mandatory face coverings for all employees that interact with the public.

Those reopening include dine-in restaurants, retail stores, open air malls and marijuana dispensaries. Barbershops and hair and nail salons can accept customers but by appointment only.

Gatherings of more than 10 people remain banned, along with visits to senior living facilities and all non-essential travel.

Businesses remaining closed in addition to casinos include bars, nightclubs, massage parlors, spas, gyms, fitness studios, brothels, strip clubs, indoor movie theaters, bowling alleys and live sports events.

“I don’t have a specific metric to move into Phase 2,” Sisolak said. “It’ll depend on various variables and criteria that would happen, benchmarks along the way. And we’ll play it by ear.”

Wynn Resorts said it doesn’t expect the green light until at least the end of this month, but it will be looking to simultaneously restart both its Strip casino hotels, Wynn Las Vegas and Encore, when that day comes.

“Clearly, we won’t be opening large mass-gathering places—nightclubs or convention areas or shows,” CEO Matt Maddox said. “But we will be opening most of our restaurants, and we’ll be working with our retail partners to try to have an experience that will be safe and fun.”

Company officials said the properties will need an occupancy rate of 50 percent to 60 percent to break even, and Maddox said he’s optimistic they’ll get there.

“We do anticipate that as we get close to an opening, weeks from now, there will be pent-up demand in the leisure segment.”

The company already has publicized a list of health and safety protocols that include social distancing on the gaming floors and in restaurants and other public spaces, personal protective wear for employees and customers, mandatory temperature scans on entry and regular extensive cleaning and sanitizing of all public and back of house areas.

Wynn, which employs about 15,000 people in Las Vegas, said it will pay all salaries and benefit through at least the end of May.

Las Vegas Sands said it won’t reopen its Strip resorts, The Venetian and Palazzo, before June and will continue to pay its furloughed workers until then.

LVS also has released an extensive protocol similar to Wynn’s for ensuring health and safety once it reopens. The company also is paying to test all employees for the coronavirus and its antibodies to see if they had the disease in the past. Testing began earlier this month and is being offered to employees’ immediate households as well.

“Our top priority continues to be the health and safety of our team members and visitors,” the company said in a statement. “We are working hard to be as prepared as possible for the day we welcome our guests.”

Locals giant Station Casinos has instituted a similar complimentary testing regimen for workers, beginning with those employed at the six properties it plans to reopen first: Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station.

The company said business will restart later at the Palms, Texas Station, Fiesta Henderson and Fiesta Rancho pending an assessment of the performance of the first wave.

MGM Resorts International has said it will probably open only a couple of its 10 Strip resorts and has named Bellagio and New York-New York as likely front-runners.

Eldorado’s CEO Foresees Closing Merger by Next Month

Eldorado Resorts CEO Tom Reeg anticipates completing the $17.3 billion merger with Caesars Entertainment by the end of June or possibly July if one of the state regulatory agencies doesn’t put the transaction on its agenda.

When the merger was interrupted by the Covid-19 pandemic in mid-March Reeg told an analyst conference call that he considered calling off the merger, which was first announced almost a year ago. But just as quickly he dismissed it.

The main reason is that the financing that was in place before the pandemic is still there. “It’s very clear to us the best option is to continue and close the Caesars transaction,” He said. “It wasn’t a difficult decision. Everything we liked about the deal still holds up, and we’re looking forward to closing the transaction and getting underway.”

Once Eldorado completes the acquisition, Reeg will be the CEO of the combined company with 60 properties, which would be the largest gaming company in the U.S.

Eldorado’s first quarter revenues were hammered by the coronavirus, which led to closing 23 casinos on March 18. Revenues fell 17.5 percent, a loss of $175.6 million. The company began with a strong first two months, up 24.7 percent, before the disaster hit.

The company furloughed nine tenths of its workforce, reduced executive salaries and slashed other costs. It has $670 million in hand, of which it is spending $.1 7 million a day to keep its properties ready to renew business, which it will begin in Louisiana, and continue until June.

One of the last impediments to the merger was lifted when Eldorado agreed to sell properties in Louisiana and Nevada to Twin River Worldwide Holdings (TRWH) for $155 million. That was to avoid federal antitrust action.

Eldorado has made another antitrust-related deal to sell the Isle of Capri Kansas City in Missouri and Lady Luck Vicksburg, Mississippi to TRWH for a total of $230 million.

Good News for Macau: China to Loosen Travel Restrictions

Relief for Macau’s virus-ravaged casino industry could be on the way, according to a news report suggesting the Chinese government might resume granting visas for individual travel from the mainland this month.

The Macau government reportedly has been in talks with Beijing about reopening the borders, which effectively have been closed since late January to control the spread of the Covid-19 contagion. The virus was first identified in China in December.

Measures included suspension of the Individual Visit Scheme, or IVS as it’s known, which enables residents of dozens of select mainland cities to travel outside the country on their own without being part of a tour group. Developed in 2003 to boost the Hong Kong and Macau economies after the SARS epidemic, the IVS has since grown to become the largest and most lucrative source of gaming revenue for Macau’s casinos.

Over the previous three years, some 36 million mainland visits to Macau have been on IVS visas. Moreover, IVS travelers are known to stay longer and spend more.

Their absence, combined with the border control measures and various mandatory quarantines that largely have sealed Macau off both from China and Hong Kong, daily visitation has plunged from the hundreds of thousands to the hundreds, and on some days less than that.

Accordingly, the city’s world-leading gaming revenue, which last year surpassed US$36 billion, fell year on year by 60 percent in the first quarter and was down more than 90 percent in April.

At the same time, the aggressive response to the pandemic on the part of both China and Macau has borne success. Confirmed cases on the mainland have been held to under 90,000, according to official numbers, with fewer than 5,000 fatalities. In Macau, a densely populated city of more than 600,000, there have been fewer than 50 known infections, no deaths and no new confirmed cases in more than a month.

“I’m quite sure that the central government will allow the reissuance of (individual visas),” local political commentator Larry So told the English-language Macau Daily Times.

He believes this will coincide with the 13th National People’s Congress, which commences in Beijing on May 22 and lasts two weeks.

“We will have the IVS visitors coming in somewhere around the time the NPC meeting (ends),” he said.

That said, most experts believe its resumption, and how many cities might be included, will depend on whether the pandemic remains stabilized, and this is not a given by any means, according to the best medical evidence to date, which points to the strong possibility in many countries of recurring waves of infections.

No one, however, expects hat visitation levels will be returning to the levels of past years any time soon. Nor is it likely either that China’s virus-battered economy will be conducive to the levels of tourism spending seen in the past, at least not in the near term.

“We will not have the money that we did have in recent years because we know that the economic (situation) now in China is not so good. People do not have that kind of spare money to come and gamble,” So told the Times.

“The novel coronavirus has completely upended what we regarded before as normal. We now do not know what the new normal will be like,” said Leonardo Dioko, director of the Research Center of the Macao Institute for Tourism Studies.

In related news, the Macau Government Tourism Office (MGTO) says it has discarded the idea of introducing a tourist tax, citing the damage the Covid-19 pandemic has wrought on the local economy.

A statement from the agency cited by the English-language Macau Post Daily said the decision came after a “comprehensive assessment” of the findings of a feasibility study on the proposed tax as well as an evaluation of the effects of the pandemic on tourism, which have been severe.

The MGTO described the huge fall-off in visitor arrivals between January and March, a 92.5 percent decline, as a “massive blow.”

Gaming-related tourism is the principal engine of the local economy and the main source of public revenues, and “It has become a priority at this stage for the (government) to bolster recovery of the trade,” the agency said.

The idea of the tax was controversial from the start. Conceived as a means to mitigate some of the burdens that rapid and dramatic increases in annual visitation, mostly from mainland China, were imposing on local traffic and infrastructure, it drew mixed opinions. The feasibility study showed the public largely in favor of it but the business community mostly against it. Those mainland visitors polled also were overwhelmingly opposed.

MGM Springfield Foresees Heavy Layoffs

The MGM Springfield casino in Massachusetts fears it will be forced to lay off as many as 1,887 workers at the end of August when temporary furloughs are due to end.

The casino, which opened two years ago, filed a notice with the state May 5 that warns workers of this possibility. The casino started the year with more than 2,000 employees, a third less than what it had promised the Massachusetts Gaming Commission that it would employ when it was selling the casino resort to the state panel that granted the license.

MGM CEO Bill Hornbuckle last week sent a letter to MGM employees all over the U.S. warning of the possibility of layoffs. Although MGM expects to be able to reopen its casinos soon, it also anticipates that travel and gaming will be hobbled at least for several months and maybe longer.

He informed employees that they would remain furloughed to the end of August, and then would be let go permanently if they hadn’t been reactivated before then. He added, “Consumer confidence is key to economic recovery and thoughtful reopening strategies are vital to building public trust.”

The MGC has extended the shutdown of the Bay State’s three casinos, the MGM Springfield, Encore Boston Harbor and Plainridge Park slots parlor several times. Currently they will remain closed until May 18, although that date could be extended.

Hard Rock Releases Virginia Renderings

In Virginia, members of the Bristol Chamber of Commerce recently got a sneak preview of the proposed Bristol Hard Rock casino resort, which would be developed at the vacant Bristol Mall. Two new architectural renderings illustrated the property’s gaming floor, restaurants, retail space, live performance venues and hotel with pools and a spa. A voter referendum on casino gambling will be held in November.

Hard Rock forecasts indicate the new casino would have an economic impact in excess of $1 billion, increasing to $4.5 billion during the first five years of operation. Annual local tax revenue would be more than $26 million and would go toward public school construction projects. The property would create 2,050 new jobs with an average annual income of $46,500, plus an additional 1,485 indirect jobs. An estimated 4 million visitors would be expected annually, mainly from out-of-state, analysts said.

Hard Rock International was the only casino operator to apply for the Bristol gaming license; the deadline was May 8. Bristol is one of five locations the Virginia legislature approved last year to develop a casino; the others are Danville, Norfolk, Portsmouth and Richmond.

Bristol city officials said they will officially announce their choice of a casino developer—assumed to be Hard Rock International—on May 26.

Missouri Senate Approves Truck Stop Pull-Tabs

The Missouri Senate recently voted 21-10 to pass a $30 billion spending plan with a provision that would allow the Missouri Lottery to install 100 new pull-tab machines throughout the state, including truck stops, which could offer up to three machines. Currently only 500 of the games are allowed, exclusively at veterans and fraternal organizations. The legislation now moves to the House.

Allowing more pull-tab machines could help supplement education funding provided by the lottery, supporters argued. However, the concept provoked intense reactions from several legislators. State Senator Eric Burlison said the proposal “disgusted” him. “I’m not a fan of funding our schools through gambling,” he said. State Senator David Sater added, “This bothers me a lot. It would be a direct offense to our low-income people who will divert their money to things like this.”

State Senator Ed Emery stated, “This is a clear example of an expansion of gaming.” He added, “With people not thinking as straight as they normally would with all the pressures of the stay-at-home and lack of community and other things that would stabilize a person, I think the impact would be even greater than it would at another time.”

Lawmakers also recently put on hold efforts to ban unregulated, untaxed slot machines that have proliferated across the state and to launch sports betting.

Virginia Fast-Tracks Sports Betting

When Virginia lawmakers drafted sports betting legislation, they included an aggressive deadline: wagering by the end of the year.

The timeline calls for a public-comment period on proposed regulations in July and August, rules approved by September 15, and operator applications available by the end of September. The Virginia Lottery will have 90 days to approve applications, which means the first bet could be made in late December.

The same law that permits sports betting also allows the first casinos to open. But casinos still require voter approval, so sports betting will be mobile only to start, similar to Tennessee and Washington, D.C.

The law allows remote registration for mobile bets, requires use of official league data, bars prop bets for college games and prohibits wagers on local collegiate games. Operators will pay a 15 percent tax on gross gaming revenue.

The law also allows for retail sports betting at any professional sports venue—such as an NFL stadium should the Redskins leave Maryland. Lawmakers wanted to leave the door open for any team from the major professional sports leagues to consider locating in the state, hence the designation of four sportsbooks in arenas and stadiums, along with five in casinos and in horse tracks.

According to SportsHandle, licenses awarded to pro team venues or casinos would not count toward the minimum of four licenses nor would the venues count towards the maximum of 12.

Sports betting revenue will fund problem gaming initiatives, but 97.5 percent goes into the general fund.

Jeremy Kudon, a lobbyist and partner with a partner at the firm Orrick, Herrington & Sutcliffe, told ESPN the rapid growth of the betting market—especially online—has been “extraordinary.”

“I would have lost a lot of money, if I was given a chance to wager on whether non-gaming states, like Tennessee, Virginia and New Hampshire would legalize mobile sports betting in these first two years,” said Kudon, whose clients include professional sports leagues and gaming operators.

Premier Lacrosse League Inks Betting Deal

Unlike most sports leagues where clubs are based in individual cities, the Premiere Lacrosse League has seven teams with no municipal affiliation. Instead they all gather in specified locales to play their games. Last summer, the teams played each other in 13 different cities.

That’s one of the oddities about the slice of professional sports. Less odd is the deal struck between the league and Genius Sports to provide official league content, statistics, and other wagering data to the league during its two week championship series in the summer. The agreement will hopefully make betting on the series popular with U.S. bettors starved for something to wager on.

The tournament, to be televised by NBC and the NBC Sports Network, plays out July 25 through August 9. The series replaces the completion of the league’s regular season, sidelined by the coronavirus pandemic.

The location will be released soon, said Paul Rabil, league co-founder along with his brother, Mike. The 20 games will be played under quarantine conditions and without fans.

“Having Genius Sports brings an editorial department into the picture that provides information to give fans tremendous insights into the competition,” said Paul Rabil, a star midfielder for the Atlas franchise.

The league has discussed its plans with sportsbook operators William Hill U.S., DraftKings, and BetMGM, and held preliminary discussions with regulators in several states, including Nevada, New Jersey, Pennsylvania, Indiana, and New Hampshire, according to CDC Gaming Reports.

Signing Genius Sports helps insulate the league and its players from any betting-related corruption.

“The PLL is committed to delivering the ultimate digital fan experience with sports wagering, providing a new competitive outlet to interact with every play of every game,” Genius Sports Group CEO Mark Locke said in a statement.

Ocean Casino Adds Everi Online

Atlantic City’s Ocean Casino Resort has added three games from supplier Everi Holdings to its New Jersey internet gaming site OceanOnlineCasino.com.

The new content, provided by Everi subsidiary Everi Interactive, includes the titles Atomic Meltdown, Star Magic and Triple Threat. Additional titles from Everi Interactive’s 22-game New Jersey online game library are expected to be added within the coming weeks.

Rush Street to Launch AGS Online in PA

Rush Street Interactive (RSI) has partnered with gaming supplier AGS (to become the first online casino operator in Pennsylvania to premier the global entertainment fan-favorite AGS games on its two sites, BetRivers.com and PlaySugarHouse.com.

The first AGS slot game that launched in Pennsylvania was Pharaoh Sun, which is already player favorite on the PlaySugarHouse.com online casino site in New Jersey.  Other player-favorite AGS games Jade Wins, Longhorn Jackpots and Olympus Strikes will be available for Pennsylvania players this week.

“We are excited to be the first online operator in Pennsylvania to add AGS game content to our engaging library of top quality and well-known casino games,” said Richard Schwartz, president of Rush Street Interactive, which operates BetRivers.com and PlaySugarHouse.com.  “AGS’ games online deliver the identical looks, features and play mechanics as their popular land-based games.”

Pharaoh Sun is an Egyptian-themed five-reel game that features a King Tut headdress and other classic images that capture the spirit of Ancient Egypt. The Tut image is the highest-paying symbol. Other paying symbols include a sphinx, a cat, and various Egyptian-themed objects. A wild beetle symbol offers players free spins. A jackpot bonus round is another treasure players can unearth in the desert of ancient times.

“We are thrilled to extend our partnership with Rush Street Interactive to Pennsylvania, where they are an established market leader and one of the top online gaming operators, following our successful online launch in New Jersey and on RushBet.co in Colombia, and our long-established relationship as a land-based game supplier,” said Matt Reback, executive vice president of AGS. “We are proud to provide online versions of our proven, popular land-based games for the PlaySugarhouse.com and BetRivers.com online casino sites as they continue to grow and expand into new markets.”

Both BetRivers.com and PlaySugarHouse.com currently offer a match of a new customer’s first deposit, up to $250. The award-winning sites/apps also focus on offering high quality and knowledgeable customer service, great deposit/withdraw methods and quick payouts, while treating every player with honesty and respect.

These new AGS slot games join a continually growing and already robust online casino catalog that now contains over 100 real-money slots, featuring online exclusive slots as well as progressive jackpot slots, along with table games and video poker variants on BetRivers.com and PlaySugarHouse.com in Pennsylvania.

Betsoft Signs Deal with Romania’s Platinum Casino

Leading online gaming contend supplier Betsoft Gaming announced an agreement with Romania’s Platinum Casino, under which Betsoft’s top-performing titles will be featured on the online casino.

Betsoft is licensed by the Romanian National Gambling Office. Platinum Casino is an established operator with over 10 years’ experience in its home country. Its online division has been licensed since 2018.

“Partnering with Platinum Casino is another exciting move for us,” said Betsoft Sales Executive, Francesca Raniolo, according to Inside Asian Gaming. “Our portfolio is broad enough to ensure that operators in specific regions can prioritize particular themes or features which appeal to their market and ensure player loyalty. We are looking forward to a growing partnership with Platinum Casino.”

Casinos Prepare to Reopen: A State by State Outlook

Social distancing. Health screenings. Face masks. Limits to positions at slots and tables. As the U.S. gaming industry prepares to reopen, abundant health precautions will be in place in hopes that customers will feel safe enough to return. From coast to coast, here’s a list of some markets poised to open their doors. All plans are subject to change, depending on containment of the Covid-19 virus.

ATLANTIC CITY

Atlantic City hotels will be accepting reservations starting June 1—just missing Memorial Day weekend, the official blastoff of summer at the Jersey shore. The casino hotels on that list include Borgata Hotel Casino & Spa, Hard Rock Atlantic City, Ocean Resort and Harrah’s, but all reservations are subject to change until the state gives properties the green light to do business.

That decision lies with Governor Phil Murphy, who hasn’t indicated a firm timeline, although he will allow beaches to open—following safe-distancing guidelines—by Memorial Day Weekend, May 22, 2020.

As may be expected, according to Philadelphia magazine, Atlantic City’s nine casinos have been busy “disinfecting the properties, top to bottom, and trying to come up with plans for what reopening will look like.” That could include face masks, reduced capacity for restaurants or just room service to start, and other precautions.

A casino executive told the magazine, “The governor is going to be extremely conservative with the plan to reopen. You’re on top of each other in a casino. Or, well, you used to be. And people have proven that they can’t self-police. And they have cabin fever. It’s going to be interesting.”

Meanwhile, Murphy reserves the right to extend the shutdown, for another 30 days or indefinitely.

“Extending this declaration ensures that we can continue using every resource at our disposal to mitigate the spread of Covid-19,” he said last week. “We will continue to stand by these principles and protect public health as we responsibly take steps to get the economy moving again.”

Meanwhile, more than 25,000 Atlantic City casino employees are out of work. And the city, which clawed its way back from the 2008-09 recession, an economic low point that caused the permanent closure of four casinos, has been set back on its heels once again.

“We have the potential of an Armageddon in Atlantic City,” George Tibbitt, the president of the town’s City Council, recently told Politico.

UNITE Here Local 54, the union representing 10,600 Atlantic City workers, says safety in the workplace comes first. “We all want to reopen as soon as possible but we want everything to reopen safe,” said Local 54 President Bob McDevitt. “We don’t want to rush into it and have bunch of tragedies happen to workers.”

UNITE Here International President D. Taylor agreed, saying, “We desperately want to go back to work, but we want to go back to work in a safe environment. There can be no short cuts. This has to be mandated in the strongest possible terms.”

Casinos are widely expected to reconfigure their gaming floors to keep customers six feet apart, installing plexiglass guards at front desks, frequently sanitizing dice and chips, suspending buffets and closing spas and pools for now. A checklist from the union also called for employer-paid tests to determine their current and past Covid-19 status, “thermal screenings” of incoming employees and guests, no touch time clocks, plexiglass partitions for cashiers, line servers, cashiers and cage staff, the elimination of self-service trays, plates and utensils, doors that are kept open or opened by staff, but not touched by the public, and other measures. Guests who exhibit signs of the virus “should be presumed infectious.”

Taylor said he would publicize the names of those casinos that did not follow these safety guidelines.

“Any casino that is not taking the kind of measures we are talking about, we’re going to let customers know this far and wide,” Taylor said. “If a tragedy hot spot happens, it affects everybody in that town, not just that one casino.”

NEVADA

Crowd control will be watchword when Nevada’s casinos gradually resume operations around Memorial Day. Social distancing measures will limit play on casino floors. Occupancy will be limited in restaurants as well as convention and meeting facilities. Nightclubs will remain closed.

The Nevada Gaming Control Board has issued new health and safety guidelines for the reopening of casinos.

The industry, which was ordered closed by Governor Steve Sisolak on March 17 along with all non-essential businesses in the state, is looking for a phased reopening of gaming floors and other attractions sometime around the official summer kickoff. To that end, licensees will be required to submit detailed reopening plans to the regulatory agency at least seven days prior to the resumption of business.

Some leading operators, notably Wynn Resorts and Las Vegas Sands, have already publicized extensive health and safety protocols governing social distancing, the screening of guests for body temperature and the regular disinfecting of public and back-of-house areas.

Under the board’s guidelines, properties must limit occupancy to no more than 50 percent of the limits assigned by local building and fire codes. Similar limits will apply to bars, taverns and restaurants that operate as restricted licensees under state regulations with 15 machine games or less.

The guidelines require the reconfiguring of gaming floor plans in accord with safe social distancing. Limits will include no more than three players per blackjack table, six players per craps table, four players per roulette table and four players per poker table.

Chairs and stools must be removed from machine gaming areas to make sure players don’t sit next to each other. Plans also must provide for social distancing in racebooks and sportsbooks, keno lounges, bingo halls, restaurants, hotel front desks, business centers, concierge areas, retail shops and other areas, with steps taken to ensure customers do not congregate in groups.

Convention and meeting spaces will be limited to gatherings of no more than 250. Nightclubs and day clubs will remain closed until further notice.

Hand sanitizer and disinfectant wipes must be available to all employees and patrons, and properties must detail their plans for cleaning and disinfecting all public areas and points of contact on a regular basis, including machine games, playing cards and chips.

Sisolak backtracked last week, however, and allowed phase one of the state’s reopening to start last Saturday, May 9. The previous date had been May 15. Restaurants and retail would be permitted to reopen with social distancing regulations in place.

MASSACHUSETTS

In an April 30 virtual meeting, the Massachusetts Gaming Commission (MGC) voted 5-0 to extend the lockdown of the state’s three casinos until May 18. This is in line with Governor Charlie Baker’s latest executive order on non-essential businesses. Casinos have been closed since March 14.

However, the panel has taken steps to form a task force to study issues around the reopening of the Encore Boston Harbor, MGM Springfield and Plainridge Park slots parlor. Their closure has turned off the spigot on $20 million that the Bay State collects each month in gaming taxes. This has exacerbated the state’s already bad budget situation.

Three simulcast centers at Plainridge Park, Suffolk Downs and Raynham Park remain closed, but remote betting that uses advanced deposit wagering have continued at Plainridge and Suffolk with the commission’s blessing.

At the April 30 meeting, MGC Chairwoman Cathy Judd-Stein said she and Interim Executive Director Karen Wells are working on a “restart working group” that includes commission members and staff working closely with casino operators to develop a plan for reopening the casinos and the commission’s offices.

Wells told commissioners, “There’s really two buckets; there’s the technical opening and then, because of the situation we find ourselves in now, we have health and safety issues we need to address.”

She added, “The technical opening protocols and procedures will consist of an assessment of the regulatory process required to bring casinos back online, including an extensive operations checklist that ensures necessary compliance and integrity standards.”

Wells said the group’s topics will include enhanced sanitation procedures, employee training, physical distancing, limiting occupancy and guidance provided by public health officials. “The plan will also need to account for what procedures will be necessary in the event of a restart setback,” she said.

The commission is looking to the country where the Covid-19 virus originated, China, and its gaming district, Macau, to learn from its experience in reopening, which began happening in late February.

Macau’s precautions are tight: every other table is closed, players are required to be masked and to have their temperatures taken when they enter and casino employees must say they are in good health before coming to work.

Judd-Stein commented, “We are fully engaged with our licensees in preparation for a new normal and the myriad of considerations for a safe and sustainable reopening.” She added, “What we do know for sure is it won’t be as simple as unlocking the doors and switching the lights back on.”

She added, “Our shared priority of public health remains paramount in our decision-making as we determine how best to proceed in a post-pandemic environment.” She concluded, “This difficult set of circumstances has presented an unprecedented global challenge. As so many have said, we are all in this together.”

Wynn Resorts Ltd., which owns the Encore, has developed a program for reopening its property in Las Vegas that may well be applied to its Massachusetts casino.

Guests at the Encore hotel will likely find that many expected amenities to be lacking, such as valet services, but replaced by free offerings of masks and hand sanitizers. They will also have their temperatures taken upon entering. Bell carts will be sanitized after each use. Elevators will be limited to four persons at a time. The casino will also be different: Every other table will be open and limited to just a few players. Slots will be at least six feet apart.

MICHIGAN

On April 30, Michigan Governor Gretchen Whitmer signed an executive order extending until May 28 temporary closings of casinos and other facilities due to the Covid-19 virus.

Without a vaccine, said Detroit Mayor Mike Duggan, the city’s three casinos probably would be unable to fully reopen. “The opening of the entertainment sector and casinos is going to depend on the development of the anti-virals, the development of a vaccine, and things that are outside our control,” he said. “I would be surprised if a vaccine develops within a year. So we’re going to have to deal with it. Do the casinos end up reopening with 25 percent or 30 percent capacity? I don’t know.”

Duggan said casinos have been working with the city’s chief medical advisor about requirements to reopen, such as having guests and employees wear masks, allowing only a fraction of slot machines to operate and restricting the number of players at table games. Duggan said he’s also watching what Las Vegas is doing.

“Those conversations will occur in the coming weeks. I think we’re a long way away—six months, maybe a year from the casinos operating the way we’re used to seeing them operate, but I do think it’s possible.”

Last year, Detroit casinos generated $184 million for the city and $118 million for the state. Duggan said Detroit entered the Covid-19 crisis with a $107 million rainy-day fund, and will use $50 million of that to offset budget cuts.

Meanwhile, the Island Resort and Casino in Harris, which closed March 21, will start a phased reopening on May 16. The first phase will include available slot machines, carryout food service, some bars, plus bingo and retail sales. It’s owned by the Hannahville Indian Community, and like other tribal casinos, is not under the jurisdiction of the Michigan Gaming Control Board.

Tribal leaders said they have a well-planned safety and protection plan ready when the casino reopens to keep staff and visitors safe. For example, each entrance will be equipped with a staff member to check the temperature of both employees and customers; individuals whose temperature is 100 or above will not be allowed in. Also, the casino will distribute face masks to guests if they want to wear one.

General Manager Tony Mancilla stated, “We feel we’re doing what everyone else does. Hotels are open, restaurants are open. We have those things. The only difference is the slot floor. We think we can keep that clean and our customers themselves will keep themselves safe.”

He said 200 of the casino’s 850 employees will be asked to return to work in the first few weeks, and the rest will return as business picks up. Employees were paid for two weeks after the casino closed.

WASHINGTON STATE

Since they closed their casinos in March, Washington’s gaming tribes have been hemorrhaging money that is typically used to run their governments and services. Now they’re mulling how to reopen, with the Northern Quest Resort & Casino near Airway Heights leading the way.

Tribes are also taking their cues from Governor Jay Inslee, who’s studying options for restarting the state’s economy.

The first day it was open, Northern Quest, operated by the Kalispel Tribe, was “slammed,” according to Kevin Zenishek, executive director of casino operations. The casino opened with every other slot machine and half the tables open.

The 29 tribal casinos in Washington last year generated more than $2 billion in revenues. But they create an economic wave that doesn’t end at the casino’s doors. They employ more people than Starbucks, which originated in the state, as well as Costco, Safeway, Walmart and Albertson’s. Tribal casinos are the eighth largest employer in the state, with a total of more than 30,000 workers.

The next tribal casino to open will likely be the Stillaguamish Tribe’s Angel of the Winds Casino Resort in Arlington on May 11. “We’ve discussed a variety of re-opening dates previously and wanted to ensure all necessary precautions were in place and we were fully prepared to open our doors,” Stillaguamish Tribal Chairman Shawn Yanity told CDC Gaming Reports.

He added, “The closure has had a significant impact on tribal programs such as family services, health services, cultural resources and tribal elder programs. The Stillaguamish Tribe is exercising its sovereignty to support the livelihoods of our team members, their families, and our community.”

In the northern part of the state, the Confederated Tribes of the Colville Reservation plan to reopen the 12 Tribes Resort Casino in Omak, the 12 Tribes Mill Bay Casino in Manson, and the 12 Tribes Coulee Dam Casino in Coulee Dam on May 19.

Ron Allen, chairman of the Jamestown S’Klallam Tribe and the Washington Indian Gaming Association, told the Seattle Times it could take up to 24 months for a return to business as usual. “We are definitely in survival mode,” he said. “Some tribes would like to open up now, but we don’t want to be the source that causes anyone to get sick from the virus. It is a calculated risk, when to open up, but we can’t wait for zero, there won’t be any economy left.”

The Puyallup tribe’s Emerald Queen Casino & Hotel near Tacoma normally employs around 2,400. Currently, 12 percent are laid off with 73 percent furloughed, says tribal spokesman Michael Thompson.

Without gaming revenues, the tribal government has also furloughed or laid off 600 workers, with some working fewer hours. It will only pay member benefits through June. The tribe is a large regional employer, but has no current plans to reopen the casino, said Chairman David Bean.

The Little Creek Casino Resort, operated by the Squaxin Island Tribe, also has no timetable for reopening, although it reopened its Salish Cliffs Golf Club a week before the governor’s May 5 timeframe for golf courses.

Ray Peters, intergovernmental affairs liaison for the tribe and interim COO of the resort told the Olympian, “People are ready to get outside. Golf is a healthy activity and we have safety precautions in place to ensure there won’t be points of contact.” Already, tee times are booked far in advance. Players are encouraged to book and pay online or by phone and to check in by calling the pro shop.

Social distancing precautions will be employed on the course, such as spacing tee times by 15-minute intervals, limiting the number of people in the pro shop, not allowing players to arrive more than 30 minutes prior to their tee time and raising cup liners so players don’t need to handle the flags. Players are limited to two at a time, unless from the same household and then the limit is four.

ILLINOIS

Illinois Governor J.B. Pritzker recently said Illinois has “really bent the curve significantly” on Covid-19 virus cases, with hospitalizations “increasing barely.”

Still, his stay-at-home order will remain in place through May—meaning that casinos, which were ordered to close March 16, will stay shuttered for now. In addition, more than 36,000 video gambling terminals across the state also will remain off-limits “to prevent the further spread of the novel Covid-19 virus and protect public health and safety,” according to Illinois Gaming Board Administrator Marcus Fruchter. “The Gaming Board will continue to review current public health guidance and conditions to determine when and under what conditions statewide video gaming and casino gambling can safely resume.”

Illinois Casino Gaming Association Executive Director Tom Swoik says casino operators hope they can reopen by June 1. He estimated Illinois’ 10 casinos have lost about $100 million during the six weeks they’ve been closed, and more than 5,000 employees have been laid off. “It’ll take several months to see people feeling comfortable to start going back. Everyone’s going to be very, very cautious,” Swoik said.

He said casinos nationwide are considering new sanitization policies, such as sneeze-guards between slot machines, spacing the machines farther apart, limiting table games to two or three players, prohibiting players from touching cards and sanitizing chips continuously.

In April 2019, Illinois casinos took in $115 million and players lost $145 million at video slots, according to gaming board data.

Covid-19 also has impacted the massive statewide gambling expansion bill Pritzker signed into law last summer, which would allow five new casinos. Sports betting, also included in the bill, launched just two days before the National Basketball League suspended its season; Illinois casinos were shuttered a week later.

RHODE ISLAND

Twin River, the owner of two casinos in Rhode Island, is working with the Rhode Island Lottery on plans they will submit shortly to Governor Gina Raimondo. The plans are to reopen the two facilities that closed in March.

“We’re hoping sooner than later,” Lottery Director Gerald Aubin told state budget officials last week. “We’re being very conservative on our opening policies and hopefully that will be approved and we can open as quick as possible.”

It’s likely to happen in phases, making slots available first, and bringing back tables later. About 1,600 slots could operate at Twin River Lincoln if six-foot distancing is maintained. At the Tiverton casino, about 380 machines could operate. That means that revenues will be about 39 percent of what was being collected in mid-March, when the casinos were closed by executive order.

A possible wrinkle in this scenario is that Rhode Island currently quarantines visitors from other states. Sixty percent of patrons to the two casinos are from out of state.

Twin River CEO George Papanier commented, “While we remain optimistic about reopening, this additional financing ensures we have the financial resources necessary to continue funding operations, servicing our obligations, and pursing organic and strategic growth opportunities through the Covid-19 crisis.”

LOUISIANA

In many Louisiana parishes, the Covid-19 curve is flattening, leading the Louisiana Gaming Control Board to consider reopening the state’s casinos later this month. Board Chairman Ronnie Jones said, “If the numbers continue to do what we hope they’re going to do and flatten out, perhaps they’re reopen by the end of the month.”

Jones said since the state had lost about $100 million in gaming revenue as of the end of April; casinos were shuttered in mid-March.

When Louisiana casinos do invite players to return, Jones said, they can expect a different experience compared to pre-closure. “It will be reduced capacity. We won’t be filling up these gaming floors with hundreds and hundreds and hundreds of people. It’ll probably be a percentage of what their authorized capacity is.”

He added, “Every other device will likely be disabled to provide for social distancing unless they put up something like a plexiglass barrier, some sort of panel between devices.” Also, Jones said, the casino floor will be arranged to comply with social distancing rules of six feet.

“You’ll have less chairs available at poker tables and blackjack tables. You’ll have less people participating in craps games just to provide for that social distancing. You’ll find most of the employees are probably going to be wearing masks and PPE’s, and there will be lots of sanitation and cleaning going on,” Jones stated.

MISSISSIPPI

Mississippi Governor Tate Reeves was hopeful the state’s casinos, closed since March 16 due to the Covid-19 virus, could reopen by May 25. However, he and state Health Officer Dr. Thomas Dobbs noted this week that the pandemic curve has not flattened. Reeves isn’t completely ruling out Memorial Day reopenings. “It’s certainly possible. It’s something that I am interested in looking into and doing,” he said.

”The casino industry is critically important to our economy,” Reeves said, “and it’s certainly critically important to the revenue streams, particularly of the local governments.” He noted the state’s casino industry employed more than 16,500 people in February; their return will help reduce unemployment rolls, currently overloaded with more than 150,000 applicants.

Reeves also pointed out that casinos won’t be the same when they reopen. For example, he said, card and table games might not reopen immediately, since they require people to gather in one spot. Also, every other slot machine might be closed so gamblers can practice social distancing. Reeves said he’s concerned that most casino activities are indoors, with crowded bars and international visitors.

Still, Mississippi Gaming and Hospitality Association Director Larry Gregory hopes casinos can reopen for the Memorial Day holiday. “What a great weekend to open for our industry,” he said. “We put together what we thought are good procedures. Customers know when them come back our casinos are clean and safe.”

At the Silver Slipper Casino Hotel in Bay St. Louis, General Manager John Ferrucci commented, “We’ll be able to get back to some kind of normalcy, at least get the juices flowing in the month of May. That’s really important. It would be critically and psychologically important that we get open in the month of May so we didn’t go two entire months with no activity at all.”

Ferrucci said the casino will reopen in stages and employees will be called back as required. He added, “We’re not going to have table games probably the first weekend,” but they will be limited to three players when they’re available.

Every other slot machine will be deactivated, and restaurant capacities will be reduced. At the popular casino buffet, guests will not touch utensils; instead, extra staff will serve customers’ selections. Guests still will build their own salads from pre-portioned ingredients and staff will operate the self-serve ice cream machine.

At the Scarlet Pearl Casino Resort in D’Iberville, Director of Promotions and Events Vicki Haskins said, “We’re installing the separators on those selected table games that are going to be opened, and that’s going to keep each person safe and socially distanced. On the slot machines that are going to be opened, we’re also adding plexiglass partitions.”

SOUTH DAKOTA

Deadwood, South Dakota was the last commercial casino market in the U.S. to close due to the Covid-19 virus. But the Deadwood city commission recently approved the second reading of an ordinance that allowed businesses—including casinos—to reopen Thursday, May 7, as long as they follow all federal, state and local Covid-19 protocols.

Governor Kristi Noem said, “Thanks to a strong commitment and respect for the principle of personal responsibility, South Dakotans have dramatically changed the trajectory of our initial Covid-19 projections.”

Deadwood Gaming Association Executive Director Mike Rodman noted, “We’re starting to see the opening of those properties so we’re anxious to get back to work.”

The first casinos to reopen were the Silverado-Franklin Historic Hotel and Gaming, Cadillac Jack’s Gaming Resort, Deadwood Station Bunkhouse and Gambling Hall, Gold Dust Casino and Hotel, Hickok’s Hotel and Gaming, the Lodge at Deadwood Gaming Resort, the Mineral Palace Hotel and Gaming (slots only), Lucky 8 Casino, Tin Lizzie Gaming Resort and the Deadwood Mountain Grand Hotel & Casino. Friday, May 8 saw the reopening of Buffalo Bodega Gaming.

The First Gold Hotel & Gaming and Gold Country Inn will reopen on Wednesday, May 13, the Wooden Nickel Casino and Bullock Hotel & Casino on Friday, May 15 and the Old Style Saloon on Thursday, May 21.

No reopening date has been set at the Celebrity Hotel & Casino, Deadwood Gulch Gaming Resort, First Gold Hotel & Gaming, Iron Horse Inn, Mustang Sally’s or Oyster Bay Casino.

MONTANA

In Montana, Covid-19 virus cases have sharply declined since late March. As a result, Governor Steve Bullock declared that restaurants, bars, brewpubs and casinos could reopen Monday, May 4. The establishments were ordered to comply with rules limiting the number of patrons and requiring staff to wear protective masks and gloves.

At the Lucky 7’s Casino in Billings Heights, owner John Gies said, “I’m ecstatic. I’m ecstatic just to see everyone again. It provides that social interaction that everybody needs, instead of being cooped up and not being able to get out and socialize. That’s a big aspect of it as well.”

Gies said he’s following the state guidelines for approval to reopen issued by the Yellowstone County health office. “We did spread our machines out to meet the social distancing requirements of six feet per machine throughout the whole casino. We did use industrial cleaners. That does kill the coronavirus. We’re going to be cleaning our machines from top to bottom, the chairs and everything, so when a customer leaves and a new customer comes in, they know that machine has been cleaned.” He said maintenance staff will also clean “all door handles, both coming in and out of the building, every ATM, any touchable surface. We’ll be hands-on-deck cleaning it to make sure everything is safe for our customers and our employees.”

Gies added that customers will open their own beverages and soft drinks from the fountain will be served in single-use plastic cups. He also is providing hand sanitizer and gloves for customers.

All of his employees have returned to work, Gies said, “even though, when they found out what they could get for unemployment, they assured us that they would love to come back. We appreciate our employees hanging in there with us. It means a lot to my wife and I.”

Gies concluded, “The bills keep coming with no income coming in. But we survived it and we will continue on.”

INDIANA

Indiana’s 10 casinos and two racinos may reopen Sunday, June 14, says Indiana Gaming Commission (IGC) Deputy Director Jenny Reske. The IGC ordered casinos to close on March 16 due to the Covid-19 virus.

Governor Eric Holcomb said he wants the state economy “back on track” with all businesses operating at full capacity by July 4. Reske said the IGC is working on reopening requirements, and casinos also must submit their plans to the state before they can invite patrons to return. “The casinos are putting a lot of thought into their plans,” Reske said.

Holcomb’s plan does not specifically mention casinos, but June 14 would be the start of his five-phase plan’s fourth phase, allowing cultural, entertainment and tourism businesses to open at half-capacity, along with bars and nightclubs. “We hope we can open up the state even more in mid-June, to get you back to even more of the activities you and your family are used to and missing so much in recent weeks,” Holcomb said.

However, he cautioned, “If we cannot continue to meet our four guiding principles, all or portions of the state may need to pause, or even return to an earlier phase of our stay-at-home order. In other words: this is up to each of us, and all of us.”

Meanwhile, union workers at three northern Indiana casinos and Caesars Southern Indiana and Indiana Grand Racing and Casino held an online rally via Facebook demanding their employers take additional steps to protect health and safety for them and patrons. They also asked their employers to offer more affordable health insurance.

KANSAS

Kansas Governor Laura Kelly lifted her stay-at-home order on Monday, May 4 and added she hopes to lift all state prohibitions on large gatherings and other restrictions by June 15. However, state-owned casinos will not be allowed to reopen until at least May 18, when the 10-person mass-gathering limit will gradually begin to increase to 30 until June 1 and 90 until June 15.

“We have been through quite an ordeal these last two months,” Kelly said. “The breadth of change we’ve all been forced to accept in a matter of weeks has been drastic, disorienting and utterly disruptive. In some ways, this crisis has brought out the best in us as Kansans. It has reminded us what truly matters in life, and how much we need each other, despite what this polarized world would have us believe.”

OKLAHOMA

Oklahoma Governor Kevin Stitt recently announced phased reopenings of businesses across the state that were temporarily closed due to the Covid-19 virus. Most casino officials are taking their time to invite customers back. Two exceptions are the Tonkawa Tribe’s Tonkawa Hotel & Casino, which opened May 1, and the Otoe-Missouri Tribe’s 7 Clans Casino Resort in Newkirk which opened May 2.

The Muscogee (Creek) Nation announced it will extend temporary closures through May 15 at its Oklahoma casinos, including River Spirit Casino Resort in Tulsa, plus casinos in Beggs, Holdenville, Eufaula, Bristow, Checotah and Okemah and the travel-plaza casinos in Muskogee and Okmulgee.

Principal Chief David Hill said, “This is an unprecedented public health crisis. As a leader and primary employer in the communities in which we live and serve, we must confront this extremely challenging time together. Health, financial stability, and job security are all concerns for our employees and we want to do everything we can to alleviate those concerns.” Hill noted that all 2,200 furloughed casino employees will continue to receive pay and benefits, as well as the 150 employees at Margaritaville.

MCN Press Secretary Jason Salsmon added, “Our top priority is health and safety and anything past that is secondary.” He said tribal leaders are closely following the latest coronavirus models and numbers, and seeking guidance from government officials.

Sac and Fox Casinos also will remain closed until at least May 15, said Principal Chief Justin Wood. “Now is not the time to end social distancing. We will continue to watch the impact reopening Oklahoma has on human life,” Wood said.

Speaking for the Chickasaw Nation, the state’s largest tribe, Governor Bill Anoatubby announced the tribe’s 24 casinos also will remain closed until at least May 15. When they do reopen, he said, extreme caution will be taken in all operations.

“Health professionals advise that recent measures enacted to help mitigate the spread of the virus are beginning to work because of widespread participation,” Anoatubby said. “From health care workers and others working on the front lines of this pandemic to those who are staying home, we must all work together to continue this progress. Health professionals also advise to take a cautious approach toward reopening in order to preserve recent gains and prevent a resurgence in new cases.”

That said, the six Lucky Star Casino locations owned by the Cheyenne and Arapaho Nation will reopen May 15, with new safety measures in place. Governor Reggie Wassana said, “We’re going to take temperatures, whether it’s through a thermal camera or through an actual temperature reading device.”

Additionally, he said, individuals with a high temperature will be turned away at the door; social distancing will be maintained at slots; sanitization protocols will comply with Center for Disease Control guidelines; and staff and guests will be encouraged to wear masks. “We’re just going to try to keep everything in front of us as we can as far as monitoring and keeping everything safe, and keeping the risk minimal,” Wassana said.

Luxor Capital Approved to Run Atlantic City’s Ocean Casino

Luxor Capital Group has succeeded where others failed: generating a profit at Ocean Casino Resort, the beleaguered Atlantic City property formerly known as Revel. Luxor also lowered Ocean’s debt and improved its finances. These successes went a long way in persuading the New Jersey Casino Control Commission to grant final authorization for the New York hedge fund to own a casino.

“There’s no doubt this property has turned around in so many areas,” Commissioner Alisa Cooper said.

As Revel, built during the nadir of the Great Recession, the gleaming Boardwalk tower went bankrupt twice, and closed in 2014. Colorado developer Bruce Deifik bought it in January 2018, reopened it that summer, and then ran out of money. Luxor, one of his lenders, assumed ownership of the casino in return for canceling the debt, according to the Associated Press.

In February 2019, Luxor put $70 million into the casino, including $50 million to pay down debt. It brought in a new management team, one with experience in the Atlantic City market. Just as important, Luxor corrected flaws in the original building, including a confusing casino floor layout. It added safety panels to an accident-waiting-to-happen escalator that took visitors to the casino floor.

Most of all, the casino got rid of Revel’s emphasis on the property as a resort destination that just happened to offer gambling.

Until the coronavirus pandemic, the results spoke for themselves.

“Ocean was self-sufficient,” said Michael Conboy, a Luxor partner. “Our budget for 2020 showed the company covering its expenses and generating free cash flow beyond that. We can debate what will happen when the city opens up. Long-term, the trajectory is still as positive as it was in February, when it was incredibly positive.”

In a presentation to the commission, casino executives said they increased revenue while decreasing expenses, “the hardest combination to achieve in business,” according to Terry Glebocki, Ocean’s CEO.

From July 2019 through February 2020, compared with the same period a year earlier, Ocean increased its slot revenue by $41.1 million, up 54 percent; table games revenue rose $6.4 million, a 17 percent gain; non-gambling revenue went up to $14.6 million, a 19 percent jump, and expenses declined by $5.6 million, or 3 percent.

The casino has also reduced the amount of outstanding bills from $22 million to less than $5 million. Due in part to such improvements, the commission lowered the amount of cash Ocean will be required to keep on hand from $32 million to $25 million.

Once the Atlantic City casinos are given permission to reopen, Glebocki said, Ocean plans to open an additional 12 floors of its modernistic hotel tower. But the casino will temporarily suspend plans for new high-limit slot and table games lounges.

Borgata Outlines Its Seven-Point Safety Plan

In an email to guest and employees, Borgata Hotel Casino & Spa in Atlantic City has outlined a Seven-Point Safety Plan for reopening. The casino, along with all other gaming properties in New Jersey, have been closed since March 16 due to the Covid-19 pandemic.

Bill Hornbuckle, MGM Resort’s Acting CEO, has introduced the plan as it looks to begin taking reservations for June 1, 2020. Governor Phil Murphy recently announced that all beaches along the Jersey Shore would be open by Memorial Day weekend.

The MGM plan includes protocols for Screening, Temperature Checks & Employee Training, Masks & Personal Protective Equipment, Physical Distancing, Hand-Washing and more. Complete plans are in th email link below.

The Borgata email states:

We hope you are staying safe and healthy during these challenging days. While our doors across the country have been closed, our thoughts have been with our employees, our communities and with our loyal guests. We know there are still difficult days ahead, but there are also signs of hope and optimism as some areas of the nation are slowly reopening.

At MGM Resorts, we have been focused on how and when we will open our doors in a manner that is safe for our employees and guests. Our team has been working tirelessly with health experts and local and state officials to develop our Seven-Point Safety Plan, a comprehensive plan outlining processes and protocols for helping keep our guests and employees safe.

This Seven-Point Safety Plan puts safety at the center of our operations, but balances with it the service and experience you have come to love and expect from MGM Resorts. We can still be wowed, because we’re wowed safely.

Learn more about our:

  •    Extensive physical updates to our properties, including conveniently placed handwashing stations, superior sanitation protocols and social distancing parameters within our resorts
  •    The transition of many of our current processes into contactless options through digital innovations

We understand that as each day passes, we learn more about this virus. Our protocols will continue evolving to ensure we provide the safest environment possible.

For additional information about these updates and more, please visit mgmresorts.com.

We always look forward to welcoming you to our resorts. On behalf of the entire MGM Resorts team, though, I feel confident in saying there has never been a time we have more looked forward to your visit. Until we see each other again, please stay safe and healthy.

Bill Hornbuckle
Acting CEO

PA Casino May Offer Gambling by Appointment

Pennsylvania’s Wind Creek Bethlehem casino hotel, which has been closed since March 15 due to the Covid-19 pandemic, has revealed details of a phased plan to reopen the facility, although the exact reopening date has not been determined.

The plan includes distancing precautions such as limiting the number of guests, limiting players and times on the golf course, and constant sanitation procedures. Wind Creek Hospitality President and CEO Jay Dorris announced the phased plan in a message posted to the casino’s website last week. The message described a phased reopening, beginning with a “soft reopening” for small groups of invited guests, who will test the new safety procedures. Employees will use personal protective equipment.

One way the casino will limit the gatherings of people in the casino will be to offer gambling by appointment.

“This system will allow guests to ‘reserve’ a day and time in advance and will allow us to always keep the number of guests and team members on property and on the casino floor at a safe number,” Dorris said in the message.

“I assure you, it will be the very first moment that we can provide guests and team members a fun and exciting experience without taking irresponsible public health risks,” Dorris said. “Our team is working through many solutions and our plans are coming into focus.

“We will also be making changes to self-service areas of food service, limiting the number of guests in retail outlets, limiting some services in our spas and fitness facilities, and making some changes in our hotels, valet parking, pools, bell service, and other entertainment venues.”

Dorris said the reopening procedures will be a work in progress. “When we reopen, our goal is to have a plan that will provide a smart and measured approach. It probably won’t be perfect, and it will evolve once put into practice,” Dorris said, according to the Allentown Morning Call.

“But just as we erred on the side of caution for the health of our guests and team members when we chose to close before government shutdowns went in place, we will use our own best judgment on when to reopen in order to protect the well-being of our team members, guests and surrounding communities.”

When Wind Creek does reopen, officials plan to be well on the way to offering sports betting. The operator filed a petition to conduct sports wagering with the Pennsylvania Gaming Control Board last week. The five-page petition doesn’t provide many specifics, as Wind Creek requested that its financial projections, hiring plan and other details be protected as confidential information.

Wind Creek officials have said previously they hope to have sports betting in place by the start of the NFL season in September.

NJ Bills Promise Help for Casinos

New Jersey lawmakers have introduced legislation to bolster an industry decimated by the coronavirus pandemic.

Assembly Bill 4031 lets casinos borrow interest-free loans from the state to cover property tax payments. The money would come from the Property Tax Relief Fund, a pot of money that provides tax breaks to lower-income and senior citizen residents. The money would be used to make payments in lieu of taxes that the casinos owe to the city of Atlantic City on May 1 and August 1.

Casinos would have 36 months to pay them back in full without interest, or face a 10 percent penalty. If not repaid in full within another 60 days, the Casino Control Commission must deem the owner or licensee disqualified to hold a casino license.

Assembly Bill 4032 grants tax breaks to the casinos on a sliding scale, depending on how steep a drop they’ve seen in revenue because of the pandemic. The breaks would come from the 8 percent tax on gross casino revenue and the 1.25 percent investment alternative tax. The state would compare February revenue to arrive at the scale.

Casinos making less than 25 percent of what they brought in for February would be entirely exempt. Casinos that brought in up to 49 percent of what they made in February would only pay 25 percent of the taxes they would typically owe. Casinos that brought in up to 74 percent what they made in February would be liable for half the taxes while casinos that made up to 99 percent what they made in February would be ante up for 75 percent of the taxes.

The bill also allows casinos to defer fees through next January that they would have to collect on hotel bookings, and parking fees can be put off for two years. In another provision, the $500 annual license fee for each slot machine would be waived for a year starting July 1. That would collectively save the casinos nearly $9 million.

The Casino Association of New Jersey urged passage of the bills, calling them “critical to ensure our industry and its thousands of employees have a path forward once we are through this pandemic.”

Casinos would have to use the tax breaks to “rehire and employ former employees,” attract patrons to the casino and hotel, market and promote events to draw tourists to Atlantic City, and anything else that would help with the “return of pre-emergency economic, gaming and tourism levels” in the city, according to NJBIZ.

“This legislation will help stabilize this vital industry, support the safe reopening of our proprieties, and help us welcome back employees and guests as soon as stay-at-home order is lifted,” Steve Callender, president of the Casino Association of New Jersey, said in a statement. “We know that there is a long road ahead of us and our employees.”

Senate President Stephen Sweeney, and Assembly Majority Leader Louis Greenwald, both Democrats sponsored the two bills. Sweeney sponsored the Senate versions, S2400 and S2398.

Atlantic County Assemblymen Vince Mazzeo and John Armato, also Democrats, have major concerns saying the bills will divert funds from programs needed by the community.

“I’m sure the casino industry, they’re going to need help,” Mazzeo said. “But if you give loans out of the Property Tax Relief Fund, what does that do to the senior freeze and homestead rebate programs, which regular folks depend on to reduce property taxes?”

A lot of industries are going to need help, he said, and he’d rather see the state focus on getting unemployment payments out to the thousands of people who have been waiting for weeks for income.

Republican State Senator Chris Brown, worked with Sweeney on the bill. “It was heartbreaking to see so many of our casino families with no money, waiting in food lines simply to feed their children, because unemployment has been a complete disaster,” he said.

Other taxes and fees that would be waived or deferred currently fund the Casino Reinvestment Development Authority and its payment of bonds for the Atlantic City Convention Center and Jim Whelan Boardwalk Hall. The bill would allow the CRDA to use other pots of money for bond payments, but that would take money from community projects, Mazzeo said, according to the Press of Atlantic City.

“This legislation will also help us resume our purchases from New Jersey vendors, as well as the tax payments that are based on casino revenue and employment,” Callender said.

NY Casinos Could Be Closed through June

There’s no word yet from New York Governor Andrew Cuomo on when the state’s casinos will be allowed to reopen. Meanwhile, properties are formulating their business and safety plans, to be prepared when that day arrives. Although the state is the hardest hit in the U.S. from the virus, the casinos are located north of the epicenter of New York City and its suburbs. Yet the wait continues.

“We’ve been in pretty regular contact with the (New York) Gaming Commission,” said Lance Young, executive vice president and general manager of del Lago Resort & Casino, in the popular Finger Lakes tourist region. “We’re monitoring what other states are doing, looking at companies like Wynn and MGM, among others, and the reopening in Macau.

“We haven’t received guidance from the commission yet,” he told GGB News, “but obviously we’re expecting that.”

Discussions and information-sharing among the state’s operators have been a vital part of the preparations, Young said. “We’re all kind of talking back and forth about the things we hear from around the country, making sure we’re all aware of best practices.”

The state’s 20 casinos and racinos, including six tribally owned gaming halls, have been closed since March 16. Given the devastation Covid-19 has visited on New York City, making it the epicenter of the outbreak in the U.S., it’s expected the state’s casinos will be among the last in the U.S. to reopen,

If it’s any indication, Rivers Casino & Resort in Schenectady—about 170 miles north of New York City—issued a statement to GGB News saying it expects its staff to remain furloughed at least through June 30. And MGM Resorts International has said its Empire City racino at Yonkers Raceway probably will be the last to reopen of the company’s 24 properties nationwide.

Needless to say, the closures have hit the sector hard. Two off weeks in March cost the upstate commercial operators𑁋including del Lago, Rivers, Tioga Downs near Binghamton and Resorts World Catskills in Monticello, about 90 miles north of New York City𑁋at least $32 million in gaming revenues alone, based on gaming commission figures from 2019. If the shutdown lasts through June—and indications are it will—lost revenues could total $153 million or more.

The impact on New York’s treasury has been severe. Already out some $2.8 billion in its fight against the pandemic, which has infected more than 330,000 statewide and claimed more than 21,000 lives, the state expects to lose around $34 million in casino taxes and $387 million of what it normally collects from the video lottery sector.

At del Lago, which has furloughed around 1,100 workers, Young said, “We’re just hanging in there We’re hoping to reopen as soon as we can.”

Feds Begin Distributing Relief Funds to Tribes

The U.S. Treasury Department has begun distributing $8 billion as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act money to tribes after several tribes won a temporary court victory April 27 that prevents any of the money from going to Alaska Native corporations—for now.

The relief funding is part of a $2.2 trillion rescue package approved in March. It was supposed to have been distributed by April 26 but the Department says it is struggling with a method for doing that.

Treasury is also withholding an undisclosed amount until the final resolution of the court case while federal judge Amit Mehta determines whether the Alaska Native corporations are the legal equivalent of federally recognized tribes.

This has prompted another lawsuit from tribes in Arizona, North Dakota, Oklahoma, Wyoming and California who claim that the Treasury Department can’t withhold any of the funds.

President Donald Trump, who last week visited several of the tribes in Arizona that will get the funding, called it the “single largest investment in Indian Country in our history.” The president was participating in a tribal town hall style meeting held near Phoenix.

Gila River Indian Community Governor Stephen Roe Lewis, who met the president, countered that the funding was “woefully inadequate.” Tribes have sought $20 billion, not $8 billion, to help them recover from having to shut down tribal casinos, shutter tourism and other businesses that help fund governmental operations.

Roe added, “Indian tribes can’t wait for that litigation to end before additional payments are made to us from the fund. If you can, please direct the Treasury to make these payments as soon as possible.”

Payments will range from $100,000 to a tribe with 37 members, to $600 million to the Navajo Nation, which has about 350,000 members. The Navajo nation has been hard hit by the coronavirus, with 2,474 confirmed cases and 73 deaths on its reservation, which is the U.S.’s largest.

Some Indian leaders complain that states, cities and counties received funding before any began being distributed to tribes.

The department began distributing the funds nine days after the April 26 deadline to do so set by Congress. However, it only made $4.8 billion available of the $8 billion that had been approved.

Senator Tom Udall, vice chairman of the U.S. Senate Committee on Indian Affairs during a press conference last week said that Congress never intended any of the money for the ANCs. “It is deplorable that Treasury held up these funds. On the next day after the court decision, they should have released all of the $8 billion intended for tribes. Tribes need the money now. With this court case the rest of the funds could be held up for a long time. In the next round, we will make sure this does not happen again,” said the senator.

The formula the Treasury Department has announced for distribution will give 60 percent to tribes based on population and 40 percent based on the total number of persons that tribes and tribal businesses own.

Las Vegas Visitation in a Swoon

Visitation to Las Vegas took a dramatic dive in March, falling more than 58 percent to 1.5 million people.

All non-essential businesses in Nevada, including casinos, were ordered closed on March 17 to stem the spread of the coronavirus, and the impacts showed on the state’s core industries of tourism and gambling-related tourism.

This was especially true for the state’s largest market, Las Vegas, and April’s full month of closures promises declines that will be far worse.

March gambling win in Las Vegas and the surrounding Southern Nevada region was down 38.1 percent compared to March 2019. Hotel occupancy in Las Vegas, which typically runs to 90 percent or more, fell almost 52 percent year-on-year to 39.8 percent during the month. Convention attendance was down almost 55 percent to fewer than 250,000 visitors.

The combined toll on revenue per available room, a closely watched metric of hotel profitability, was dramatic: $57.22, a decline of more than 53 percent.

McCarran International Airport reported a 53.1 percent decline in passenger traffic to 2 million in March. Highway traffic, including local traffic, was down 29.3 percent to 83,194 vehicles per day.

Through the first quarter, Las Vegas visitation is down 18.3 percent compared to last year, convention attendance is off 13 percent. Hotel occupancy is down 17 percent.