616k Casino Employees Look for Bailout in USA

America is facing the devastating consequences of the Covid-19 outbreak. All land-based locations have already been closed and more than 600k workers sent home.

The American Gaming Association (AGA) has just released the report showing that 95% of the state 465 commercial casinos and 76% of tribal venues have closed their doors either voluntarily or following the official order of a local authority.

Current Situation

According to the words of AGA CEO Bill Miller, about 616k of Nevada casino market. He added that “nearly 350k small business employees that rely on gaming for their livelihood” are facing huge problems.

The most recent information shows that casino workers earn a combined $74b in annual salaries, while casinos generate $41b in annual tax income and tribal revenue sharing. The Association further added that money made directly and indirectly through casino operations provides “essential for local hospitals, first responders and vital public services.” If the same situation continues in the following period, the entire system will face financial issues.

Expectations

AGA CEO urged the immediate reaction of the government which will return the employees to their positions. Miller doesn’t expect that the officials will solve the Covid-19 problem on their own but requires “swift and comprehensive” answer. It means ing the entire US casino sector with some kind of financial package.

Meanwhile, US congress is discussing the potential bailouts and Gaming Association hopes to receive a better stimulus than the UK betting sector. As a reminder, the UK government has just disclosed its incapability to exempt the retail and hospitality sectors from covering business rates for the whole year.

It is expected that most of the workers who have been released due to infection will apply for unemployment benefits and additional financial assistance from the state…

Results

This past week brought plummeting results for US gambling operators. Some of them have recorded a slight increase – Boyd Gaming shot up 43% last Thursday, Wynn Resorts (+8.3%).

Source:

“US casino sector says 616k out-of-work staff need virus bailout”, calvinayre.com, March 20, 2020.