Author: Casino Connection Staff

The Massachusetts Gaming Commission (MGC) has begun talking about a “safe and sustainable” way of reopening the Bay State’s three casinos, the Encore Boston Harbor, MGM Springfield and Plainridge Park slots parlor. It is looking to Macau, China for an example of how this might be accomplished.

The casinos closed March 15 on the executive order of Governor Charlie Baker and won’t open again at least until May 5. During the MGC meeting on April 23 Chairwoman Cathy 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.”

Two of the companies that own casinos in Massachusetts, MGM Resorts and Wynn Resorts, previously closed and have now reopened properties in Macau. This experience will be helpful, said Judd-Stein. A team of commission employees has begun meeting to learn some of the lessons from that experience.

They will also draw from a paper by Wynn CEO Matt Maddox that gives a detailed proposed policy for limiting casino capacity, disinfecting surfaces and protective gear for employees and guests.

Judd-Stein added, “Whatever the plans are, they will require robust public education campaigns for customers and employees. Right now though, the focus remains on staying home to stop the spread and flatten the curve. But as we think about looking towards the next phase, whatever that may be, there will be no shortage of logistics to consider.”

The governor has said that he doesn’t yet know whether businesses and agencies will reopen on May 4. April 27 during his weekly press conference Baker said he was waiting for more coronavirus data before he decides.

He said, “The trend data remains reasonably high, but obviously whatever decision we make needs to come with a little thought and a plan behind it, so we’ll probably put that out later this week.”

He noted a decline in the numbers of Covid-19 cases and death and especially in declines in hospitalizations. The governor said he expected that the decline in cases will be gradual, mirroring the initial increases, but that it might take longer than was projected, which would affect when the state can reopen.

Some states, such as Texas and Georgia, have begun reopening. Others, such as California, remain firmly locked down. Baker referenced this when he said, “The numbers vary so much from state to state that you would expect states to act relatively independently based on their own data and to try to act with the states around them.”

‘Play My Way’ Extension

Because of the uncertainty, the commission unanimously voted to give the three casinos a one-year extension to launch the “Play My Way” program that will help players track their spending and assist them in limiting their wagers.

The Encore and MGM casinos had been scheduled to launch the program by September 1, 2020 but, given the hardships imposed by the closures, they convinced the commission to give them another year. Plainridge Park had already implemented the program.

MGC’s Director of Research and Responsible Gaming Mark Vander Linden credited MGM and Wynn with working “diligently and in good faith toward the completion and launch of a play management system.”

He described the “Play My Way” program as a way for players to keep track of how much they spend and “inform their decision to continue to stop their play. “They make decisions about gambling and monitor it in real time.”

Missouri’s 13 casinos will remain closed due to Covid-19 at least until May 15, even though Governor Mike Parson is allowing certain businesses to reopen Monday, May 4. Parson ordered the casinos to close on March 17. Missouri Gaming Commission Chairman Mike Leara said, “We are not ready to give casinos the go-ahead to open.” In fact, he said the state’s casinos could remain closed beyond May 15 based on the status of the pandemic at that time. “We’re going to reevaluate everything early that week. It could change,” Leara said.

St. Louis County Executive Sam Page has extended the county’s stay-at-home order until at least mid-May due to concern reopening too soon could create a second wave of infections. Officials in the city of St. Louis, Kansas City and Jackson County also have extended stay-at-home orders through mid-May.

According to earlier estimates, the casino closures could cost the state $60 million in revenue, which would be directed to public schools and universities.

No reopening dates have been announced for the two St. Louis market casinos in Illinois, the Alton Argosy and the Casino Queen. In East St. Louis, which depends on the Casino Queen for revenue, officials are concerned about the potential negative impact from Missouri casinos reopening, especially Lumière Place in downtown St. Louis and River City in Lemay.

Las Vegas Sands plans to use thermal cameras to conduct temperature checks on guests arriving at the company’s Venetian and Palazzo casino hotels on the Las Vegas Strip.

In line with measures Wynn Resorts publicized late last month, LVS will deploy the cameras at every entry point and require secondary screenings for anyone registering a temperature higher than 100 degrees. Those confirmed with a high fever will “undergo further medical assessment and be directed to appropriate medical care,” the company said.

The company also plans to employ a team of 25 emergency medical technicians, with eight on duty at all times at the two resorts, and employees will undergo safety, sanitation and response training and will wear protective equipment according to their responsibilities.

Hotel rooms will be equipped with hand sanitizer and disinfecting wipes, latex gloves and protective face masks, although guests won’t be required to wear them.

The suite of any guest who tests positive for the Covid-19 virus will be removed from service and undergo cleaning by a third-party expert

Other measures will include greater spacing between slot machines and table games to adhere to best practices for social distancing, and elevators will be limited to four passengers at a time.

Casino chips in play will be disinfected every two hours, and electrostatic sprayers will apply hospital-grade disinfectant on high-touch surfaces during off-peak hours. UV lights will be used to decontaminate shipments arriving and leaving receiving docks, mailrooms and warehouse spaces and on hotel equipment like baggage carts.

The state Gaming Control Board is developing guidelines for this month’s expected casino reopenings that could include restricting admissions and occupancy, though details hadn’t been released as of last week.

Control Board Chairwoman Sandra Morgan said gaming operators are being consulted on the plans.

LVS, in the meantime, said it will continue to pay its 10,000 Venetian and Palazzo employees through May 17 and also will pay some 1,200 people left without jobs when the resorts’ 14 third-party restaurants were closed.

Wynn Resorts and Station Casinos are the only Nevada operators still paying workers during the state-imposed shutdown, now in its seventh week.

LVS is reported to be spending around $12 million a day to maintain its properties during the closure. The company’s balance sheet had $2.6 billion as of March 31 and access to almost $4 billion through lines of credit.

Mississippi Governor Tate Reeves recently said he will allow some businesses to open with certain restrictions—but not the state’s casinos, which closed March 16 in response to the Covid-19 pandemic. “We don’t think that the gaming market is ready to reopen yet,” he said in an interview on MSNBC. Reeves explained on the negative side, casinos attract large numbers of people; on the positive side, their large size allows for social distancing. He said casinos will be able to open when both the Mississippi Gaming Commission and the state health department give the go-ahead.

Mississippi Gaming Commission Executive Director Allen Godfrey noted, “Opening a casino is something we’ve done on a regular basis. Reopening a casino is not the issue in South Mississippi as it is in a lot of places.” Godfrey said as soon as Reeves eases some regulations and gives the gaming commission some direction, “we will take it from there.” For example, casinos could reopen with thermal temperature scans of employees and staff, wearing of masks, placing slot machines for social distancing and closing or reconfiguring buffets.

South Mississippi’s 12 casinos were closed for several months following Hurricane Katrina; several also closed in the past for hurricanes on the Coast and flooding on the Mississippi River.

In Biloxi, Palace Casino General Manager Keith Crosby said Coastal casino operators are eager to reopen, but “the last thing we want to do is to open up and have something happen.” Crosby said Palace Casino Hotel and several others are taking reservations for early May, but staff are calling week by week to cancel those reservations.

He added guests who have to cancel casino and golf packages at the Preserve are rescheduling for the fall. “Our expectations swing from extreme one side to extreme the other side. Reality probably will land in the middle with some customers eager to return and others not ready to venture out,” Crosby stated.

Bill Hornbuckle, chief executive officer at MGM Resorts International, parent company of Beau Rivage Resort & Casino in Biloxi, said, “Everything–from how often we clean to how we greet our guests–could and will change. Our casino floors will look different and our restaurants ultimately will be impacted as well.”

Spectrum Gaming Capital Chief Executive Officer Robert Heller said he believes the recovery from Covid-19 will go slower than post-Katrina, partly because customers will be afraid to return. Four months after Katrina, some Coast casinos reopened; however, it took one year for Beau Rivage, the largest casino in Mississippi, to reopen and for revenue to return to near pre-Katrina levels.

Heller noted following the 9/11 attacks, Atlantic City rebounded within three months, despite its proximity to New York City. However, Las Vegas did not recover for years, due to the disruption of business and customers’ fear of air travel, Heller said. Fear of flying also impacted the Las Vegas Strip during the national recession that started in 2007. “The lack of visitors was painful,” he said. Heller added, “Regional markets are going to perform better and gamblers will gamble. When people come back to life they want to go have fun.”

Geoff Atkinson, senior data analyst at Management, said while many Coast casinos were closed in 2005 and part of 2006, inland casinos experienced a surge in business. A similar situation could occur now if one state reopens casinos while they remain closed in a neighboring state. He pointed out that happened in Florida after Hurricane Irma; one casino reopened within a few days, while neighboring casino didn’t reopen for eight months. “It’s a big advantage if your casino is open and your competitor’s casino is not,” Atkinson said.

Atkinson said once the casinos reopen, restoring confidence and getting people to return will be the key issues—not necessarily how to position slot machines.

The Pennsylvania State Horse Racing Commission is taking steps toward reopening the state racing industry, which has been idle since March 16 due to the coronavirus pandemic. Pennsylvania has three thoroughbred tracks and three harness tracks.

Members of the racing commission held a phone conference last week to offer a public debate on restarting racing. Tom Chuckas, who oversees thoroughbred racing in the state, asked track operators to submit formal reopening plans by May 8.

The phone conference focused on protocols and procedures for reopening. “The goal is quite simple,” Chuckas told commissioners. “And that’s to develop best practices for safety that are Pennsylvania-centric.” He said the goal is to be “ready to go” as soon as the racing ban lifts, even though no precise date is set.

Members of the commission followed up by agreeing they would send a letter to Governor Tom Wolf.

Nevada Governor Steve Sisolak continued his reticence to announce a plan to reopen the state and the casino industry when he kicked the can down the road yet again, extending the stay-at-home order until May 15. While Sisolak outlined his “Roadmap to Recovery” plan, there were little specifics about the plan. After May 15, phase 1 will commence opening certain unspecified businesses will be permitted to open. When asked about reopening casinos, he said that would be determined by the state Gaming Control Board upon consultation with the industry.

Earlier in the week, the governor said casinos would not open until phase 3 or 4, but with the phases undefine, even the number of different phases the industry was confused as to the way forward. Some Las Vegas casinos are already taking reservations for May 15, but most with caveats those dates could change.

Earlier last week, Nevada joined a coalition of five Western states seeking to work together on plans to reopen their economies without sacrificing the health and safety of their residents and visitors.

Sisolak said the partnership with California, Oregon, Washington and Colorado will help in “sharing critical information and best practices on how to mitigate the spread” of the Covid-19 virus.

“Millions of visitors from our fellow Western states travel to Nevada every year as a premier tourism destination, and this partnership will be vital to our immediate recovery and long-term economic comeback,” he said in a statement.

The group has announced a set of shared principles that include prioritizing health and safety and relying on medical science, not politics, to guide their decisions to modify stay-at-home orders.

“We need to see a decline in the rate of spread of the virus before large-scale reopening, and we will be working in coordination to identify the best metrics to guide this,” the agreement states.

Goals include: protecting vulnerable populations in places like nursing homes and other long-term care facilities, ensuring hospitals are at adequate surge capacity for supplies and personal protective equipment, mitigating the virus’ impacts on marginalized communities and establishing expanded testing, contact tracing and isolation.

Sisolak is set this week to unveil a plan to gradually reopen Nevada’s economy, whose dominant gaming and tourism industries have been devastated by the pandemic.

A statewide directive in force since March closing all schools and non-essential businesses, including the state’s 435 casinos, was set to expire last Friday. However, Sisolak has indicated the order will be extended, though for how long was not known last week. He has said he will base his decision on key medical benchmarks that include a downward trajectory of new infections and hospitalizations over a 14-day period, maintenance of hospital capacity without crisis standards of care, a sustained ability to protect vulnerable populations and confirmed protective measures in places of business.

As of Friday, Nevada had 4,998 known infections and 243 deaths, most of them in the south of the state in and around Las Vegas. Washoe County, home to the casino markets of Reno and Lake Tahoe, reported 834 cases last week.

Forced to close March 14, the two Rhode Island casinos owned by Twin River Worldwide Holdings in Tiverton and Lincoln brought in a meager $16 million in taxes for the month, according to data released by the Rhode Island Lottery. This was a 67 percent decline over the March 2019 figures.

Table game tax revenues for both casinos were $662,000 compared to $1.5 million the month before.

Sportsbook revenue to the state was $1 million for March, compared to $2.3 million the previous month.

Gaming taxes are the state’s third largest source of government revenue. Normally it pays $400 million into the state’s coffers.

The city of Tiverton, which is near the state line with Massachusetts, could see a $2.2 million shortfall for the fiscal year because of the closure. The town had budgeted $3.1 million in anticipated being paid by Twin River, but so far it has collected $1.2 million.

The legislation that authorized the casino in Tiverton stipulated that the town was guaranteed $3 million a year from gaming revenue. If there is no revenue, however, there can be no payments.

The city has put a lot of that revenue into its operating budget, which means that, with the casino closure, it could be forced to make cuts in police and fire. The city manager has said that all discretionary and non-essential spending must cease at least until the end of the year.

Rhode Island Governor Gina Raimondo said recently that she was consulting with Nevada’s governor about how he plans to reopen that state’s casinos. She said he is aiming at a May 9 lifting of restrictions that would begin gradually.

In a separate but related development, the Rhode Island Ethics Commission voted 7-1 to dismiss a complaint against Governor Raimondo that she had violated ethics rules when she negotiated a $1 billion non-bid, 20-year contract with International Game Technology (IGT) to continue to be the state’s lottery provider through 2043.

After the vote the commission issued this statement: “After consideration, the Commission concurred with the prosecutor’s recommendation and voted (7-1) to find that there does not exist probable cause to believe that the Respondent [Raimondo] committed a knowing and willful violation of the Code of Ethics, and to dismiss the complaint with prejudice.”

Raimondo issued this statement: “We are pleased that the Ethics Commission voted to dismiss this baseless complaint, following a thorough review.”

The complaint filed in July 2019 was made by the Rhode Island Republican Party, which commented, “In recent years, the Ethics Commission has interpreted the conflict of interest provisions of the Ethics Code in a way that benefits State House politicians.” The GOP centered on the fact that IGT’s negotiator and former IGT Chairman Donald Sweitzer , who was the former treasurer of the Democratic Governors Association, which Raimondo chaired at the time.

Raimondo’s attorneys successfully argued that Sweitzer’s title was honorary and that he had nothing to gain personally by the contract extension.

It also alleged that she violated the code by negotiating a contract without “an open and public competitive bid process.”

The legislature is currently not in session, due to the pandemic, and so the extension of the contract has not yet been voted on by lawmakers. The existing contract expires in 2023.

The Mohegan Sun in Connecticut has announced that it won’t reopen before May 12 at the earliest. That’s two weeks later than what the tribe previously announced.

The delay was because of continued worries associated with the Covid-19 pandemic. The casino sent the following to the Republican: “As the health and safety being the top priority of all team members and guests, Mohegan Sun will remain closed to the public through May 12, 2020. Re-opening date options continue to be discussed by working closely with the Mohegan Tribal Council and the state of Connecticut’s Governor’s Office, and by monitoring federal health and safety guidelines.”

The other Connecticut casino, Foxwoods Resorts Casino, remains closed, without an announced reopening date.

Because both casinos are owned by sovereign Indian tribes they are not required to abide by Governor Ned Lamont’s stay at home executive order, but chose to do so.

When Governor Lamont lifts the stay-at-home order it will probably be on the advice of a special task force: the 47-member Reopen Connecticut Advisory Group. The group, which has drawn considerable criticism because it isn’t subject to the state’s open records laws, includes 13 public officials, merchants, restaurant owners and the chairman of the Mashantucket Pequot Tribal Nation. It is already meeting via teleconference 14 hours a day.

Vincent Candelora, Deputy House Republican leader of the Connecticut legislature, told the Hartford Courant: “I don’t think it would be harmful to have Zoom meetings or have the meetings live-streamed like we’re doing elsewhere so people can see and hear the conversations.”

Leaders of the group will answer media questions once a week, said Lamont.

Roy Horn, one half of the legendary Las Vegas big-cat act Siegfried & Roy, has tested positive for the coronavirus and is undergoing treatment, a representative for the duo announced last Tuesday.

In a statement, Dave Kirvin of Kirvin Doak Communications said, “We can confirm that Roy Horn has tested positive for the virus that causes Covid-19 and is currently responding well to treatment. Most importantly, Siegfried and Roy send positive wishes to everyone impacted by the pandemic. We will have no further comment on Roy’s recovery at this time and ask everyone to respect his right to privacy.”

Horn is 75 years old. He retired from his flamboyant act, which featured performing lions, tigers and leopards, after an incident in October 2003 when a tiger named Mantecore mauled him onstage during a show at the Mirage.

Horn always insisted that Mantecore actually pulled him to safety after he got dizzy onstage. The animal continued to live in the performers’ animal sanctuary until its death in 2014.

The 23 tribal casinos operated by Michigan’s 12 federally recognized tribes all closed by March 22 due to the Covid-19 pandemic. As sovereign land, tribal territory is not subject to Governor Gretchen Whitmer’s stay-home order, but so far the tribes have followed her decision to close nonessential businesses, including casinos, which recently was extended to May 15.

Tribal leaders across the state said they are tracking daily infection rates and considering when may be the right time to reopen casinos. Frank Cloutier, tribal spokesman and former chief of the Saginaw Chippewa Indian Tribe, owner of the Soaring Eagle Casino and Resort in Mount Pleasant, said the casino could reopen sooner than Whitmer would prefer. “I hope and pray she is completely aware of the negative impact on tribal communities. There could possibly be a point where we have no other alternative,” Cloutier said.

He noted gaming revenue accounts for three-quarters of the tribe’s budget. As a result of the tribe’s casino being closed for several weeks, some government programs could be eliminated. “Most people hear about tribal gaming and they think slot machines and blackjack tables. I’m talking about education. I’m talking about lunch programs for our youth. I’m talking about elder care, I’m talking about housing infrastructure, tribal court, fire and police,” he said.

Casino host communities near also are taking a hit. Under state gaming compacts, casino-owning tribes share 2 percent of gaming revenue with local nontribal governments. In 2018, those agreements accounted for $30.1 million going to schools, fire and rescue services and other local government institutions in local communities. The loss of gaming revenue is hardest felt in the Upper Peninsula, where five of Michigan’s 12 tribes are located and operate casinos in isolated, economically limited regions.

Once source of assistance is the federal government’s $2 trillion Coronavirus Aid, Relief and Economic Security Act, or CARES Act, which set aside $8 billion for tribes. However, many Michigan tribes have said they’re having difficulty accessing the funds. Aaron Payment, chairperson for the Sault Ste. Marie Tribe of Chippewa Indians, said the tribe expects a budget gap of $20 million if the closure continues through June. If the federal funds were accessible, “it’d be a lot easier for me to be able to argue to my council that we should remain closed to keep people safe,” he said. Small Business Administration loans also have been difficult to access because the SBA will not loan to businesses that generate more than more than one-third of their revenue from gambling.

Bryan Newland, chairman of the Bay Mills Indian Community, said launching online gaming, which was legalized in December, would be a tremendous help to the tribes. Although tribes don’t need state permission to own casinos on their land, online gaming is an exception, since it allows customers to patronize a casino without being present on tribal land. The state planned to launch online gaming by early 2021 but Newland said his and other tribes, and Detroit casino operators, have urged Whitmer and the Michigan Gaming Control Board to expedite the rulemaking process and offer online gambling before then. A spokeswoman for Whitmer said she is reviewing the requests.

Meanwhile Newland said casinos will look different when they finally do reopen. “You’ll see us and a lot of casinos start to bring things back slowly. Maybe slot machines, but not table games. Maybe no hotels at first. Buffet foodservice is going to be a thing of the past,” he said.

The three non-tribal casinos in Detroit will remain closed through at least May 15, officials said. Greektown Casino-Hotel, MGM Grand Detroit and MotorCity Casino closed on March 16, along with Caesars Windsor across the Detroit River in Canada. The sportsbooks at MGM and Greektown had just opened on March 11.