NY Casinos Lockdown Brings US$1b Loss in the Next Few Weeks

New York State’s gambling field might be facing tough times due to the novel coronavirus outbreak, as the American Gaming Association recently pointed out. An estimation has been made regarding the potential loss the casino closures is about to have. The association said that this figure amounts to about US$1 billion if the casinos remain closed after two months and it would only grow from then on.

The tribal and commercial casino locations and gaming venues closed for business their brick-and-mortar facilities earlier this month, as COVID-19 began its spread across the state. As of March 24, New York accounts for some five percent of all confirmed COVID-19 cases on a global scale. The state issued information that some 25,665 cases of the novel coronavirus have been confirmed in New York State.

Two Months of No Gambling

 

World Health Organization made it clear that the United States could soon become the next epicenter of the highly contagious virus, as some 52,215 cases of the novel coronavirus have been confirmed. A total of 675 deaths as a result of COVID-19 have also been confirmed since the beginning of the outspread. In the meantime, President Donald Trump contemplates whether he should lift the lockdown by April 12.

The situation is a tough one for the gambling industry as well, as land-based casinos across New York State shut down for at least two weeks earlier this month. The end of this week is expected to see a reevaluation of the situation and a plan for action for the upcoming weeks and months. In the meantime, the American Gaming Association is making projections.

Some US$1 billion would be lost if 24 commercial and tribal casinos, as well as gaming venues on a state level, remain closed for a total of eight weeks. Practicing social distancing has mandated this measure to be implemented, in an attempt to flatten the curve and slow down the spread of the outbreak.

American Gaming Association Issues Projections

On a national scale, some 95 percent of the commercial casinos have already closed their brick-and-mortar buildings and rely on online gaming solely. As for the tribal casinos, their percentage amounts to 82 percent. The United States is facing financial challenges of these venues remain locked down for two months. The association issued information in its recent report, showing that about US$43.5 billion is about to be lost over eight weeks of no gambling operation.

Popular locations such as del Lago Resort & Casino, Resorts World Catskills, as well as the three venues overseen by the Oneida Indian Nation. Players are projected to make their way to the online gaming offerings where those are available. New York State does not allow the overseeing of an online platform within the borders of the state. Players often resort to offshore online gambling platforms or the offerings New Jersey has up for grabs.

On a national scale, the American Gaming Association has pointed out that about 622,000 casino staff members would be negatively affected by the lengthy lockdown projected to paralyze the gaming industry. Upwards of U$74 billion in total annual wages is going to be lost over two months of no casino operation in the United States.

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Author:

Yolina has followed closely the latest development on the Canadian gaming scene over the past years, monitoring the land-based, lottery, and online offerings up for grabs. The dynamic nature of the local lottery and casino fields, as well as the opportunities lying ahead of Canada fire her enthusiasm for what is to come. A sports betting enthusiast, in her spare time Yolina could be found in her natural habitat – turning the pages of biographies and catching up on the latest stand-up comedy podcasts.