Cell phone records culled after the reopening of casinos in Atlantic City reveal that visitation dropped more than half from 2019 figures, according to Professor Bruce Mizrach of Rutgers University.
“It’s definitely Covid-related,” said Mizrach, also an economic consultant. “If (health experts) could announce that they’ve come up with a vaccine and everyone could immediately have immunity to coronavirus, we might see a very, very quick rebound. But forecasting the economy, we think, is similar to forecasting the disease.”
Mizrach, along with research assistant Max Miller analyzed New Jersey casino visits compiled by SafeGraph, which taps cell-phone signals from 45 million users in North America. Their analysis covered June 29 through July 20, the first three weeks after eight of the city’s nine gaming halls reopened. The authors updated the numbers for CDC Gaming Reports with data through July 26, the day the ninth, Borgata, reopened.
Casinos saw significant declines in foot traffic from comparable weeks last year, from 20 percent for Ocean Casino Resort to 71 percent for Harrah’s. But total casino visits rose gradually each week, from 11,331 for the week ending July 5 to 21,957 for the week ending July 26.
“There’s still a long way to go until (casinos) are fully recovered in terms of foot traffic,” Miller said.
The figures suggest that the disease drives economic activity more than actions taken by state governments. Consumers choose to “avoid… going to casinos if they’re fearful of the disease,” Mizrach said. “The best way to fix the economy is to slow the progress of the disease.”
The fear skews more towards older visitors, casino officials say. In the aftermath of reopening, younger crowds have taken on new significance, driven to a large extent by the pandemic’s impact on older players.
The presence of younger gamblers and the number of families staying at the hotels has increased at most of the city’s casinos since the industry was permitted to reopen July 2, several executives and employees said, according to the Press of Atlantic City.
“I agree that the crowd is younger and we have many families. But, I think, they have always been coming,” said Steve Callender, regional president for Caesars Entertainment Inc., which operates four of the city’s casinos.
More younger people have booked hotel rooms and signed up for loyalty cards, said Ron Baumann, senior vice president and general manager for Caesars Entertainment. In the first two weeks of July, almost 6,000 new Caesars Rewards cards were activated, many by people in the 29 to 39 age range.
“The ones that (already had rewards cards) are increasing their visitation more so than they were pre-Covid,” he said.
Joe Lupo, president of Hard Rock Hotel & Casino Atlantic City, reports the same experience. “We are seeing that the older the customer is, the less we are seeing that customer compared to last year,” he said, noting that trend is similar at other casinos across the Hard Rock brand. “I think it’s expected that the older customer segment is a little bit more leery of going out with the risk of Covid-19.”
“I think it’s going to take a while for the more mature visitor to feel comfortable enough to come back,” said Bob Ambrose, a gaming industry consultant, writer and adjunct professor of casino management and hospitality.
Yet Ambrose said industry protocols are safer than supermarkets or retail stores. “I think over time, we will see a little bit more of the older demographic as they understand (what the casinos are doing),” Lupo said. “We need to build confidence and trust that our protocols are doing their job, and I think we’ve seen that.”
Affordability contributes to skewing younger and attracting first-time visitors.
“Our hotel rates, as are most of our competitors, are more affordable this summer than they’ve been probably in I don’t know how long,” Baumann said. “So families can now take advantage of coming down here … especially during the weekdays, we’re definitely seeing more families.”
Still, Ocean Casino Resort has not seen that younger demographic, said Mike Donovan, chief marketing officer and senior vice president.
“I think (the crowd) is probably a little bit older, just for us, because we don’t have those things and that were such a big piece of business last year,” he said. “That nightlife, sports betting and entertainment would bring … 10,000 people on your property in one day that are all primarily under 40.”
Meanwhile, New Jersey Governor Phil Murphy has reduced the maximum number of people at indoor gatherings in the state from 100 to 25, while limiting the capacity to 25 percent in an effort to stem the spike in Covid-19 cases. The latest move is viewed as putting a lid on house parties.
“Unfortunately, the actions of a few knuckleheads leave us no other course,” Murphy said. “This will help us curtail the dangerous actions of a few that put many at risk.”
The number of positive cases of Covid-19 in New Jersey totaled 182,614, with the deaths reaching 13,971. There are 738 people hospitalized across the state, including 144 people in intensive care and 49 people on ventilators, Murphy said.
In related news, a pair of casino relief bills have not budged in Trenton. But Majority Leader Louis Greenwald said the proposals still have a high priority.
“It’s just really a very fluid situation as the virus continues to change and how we manage the virus, while supporting the industry and trying to figure out what’s the best way to move forward,” he said. “We’re really focused on how we can establish a strong and reliable consumer base that is managing the virus in a safe and efficient manner.”
Greenwald and Speaker Craig Coughlin have discussed a plan to reduce gaming-revenue taxes for one year, as well as eliminate hotel fees through the end of 2020, among other provisions, according to the Press. The relief could save the industry as much as $93 million in a year’s time.
“It’s not really so much about the tax relief as it is about how can we get the men and women in the workforce back into the casino (and) stabilize that portion of the industry,” Greenwald said.
The second bill offers interest-free loans to casino companies who made payments in lieu of taxes during the pandemic-induced shutdown. The Senate has not acted on the legislation.
The legislation has added importance since the casinos do not qualify for business relief from the feds, said Ocean Casino Resort CEO Terry Glebocki.
