Coronavirus Pandemic Limits Casinos Earnings
Atlantic City’s casinos have taken negative hits on their profits. The collective profits of the casinos fell by 37% in the third quarter of 2020. This is despite the fact that casinos were allowed to reopen with capacity limits and safety guidelines to combat the coronavirus pandemic.
In the recent figures released by the state Division of Gaming Enforcement, all casinos in the region recorded a gross operating profit. However, the majority of the casinos had less operating profits than what was recorded in the third quarter of last year. There is a chasm between current earnings and that of last year when casinos could operate at 100% capacity.
Last year, the casinos earned $239.6 million in the third quarter, whereas this year’s earnings were $150.5 million.
Of all nine casinos in the region, only one casino, the Ocean Casino Resort, recorded an increase in its operating profit in the third quarter. The casino recorded $10.2 million last year while recording $24.4 million in 2020
“The data released today confirms what many have already suspected: The current public health crisis has both suppressed consumer demand for brick-and-mortar casino gaming and related amenities and increased the costs of operating these services,” said Jane Bokunewicz, coordinator of a gambling and tourism institute at Stockton University. “This is a devastating equation for casino operators and their employees.”
Insiders suggest that most of the casinos had to make costly investments to reopen their doors amid the coronavirus pandemic. “Although the move was forced on casinos, it has allowed for responsible management of the casino hotels, minimizing risk and building a foundation for a successful recovery,” James Plousis, chairman of the New Jersey Casino Control Commission,
Hardrock casino took the biggest hit, with the gross operating profit falling by 14.3% to $20.9 million. Harrah casino saw its gross operating profit fall by 14.3% to $19.3 million. Tropicana took a hit of 43.8% to $18.2 million, and Caesars was down by 25% to $17.5 million.
Golden Nugget saw its value plummet by 11% to 16 million; Bally’s saw a reduction by 8.3% to $13 million. Resorts was down by 16.7% to $7.7 million. Finally, Borgata saw a whopping 97% to $2.3 million.
While other casinos had their doors reopened on July 2, the Borgata reopened on July 26. The casino choose the extra time to adapt its dining and other facilities to adhere to the coronavirus safety guidelines. The casino was the last to reopen in Atlantic City.
All casinos in the US are mandated to operate under certain limits because of the pandemic. The casinos in Atlantic City are restricted to 25% of capacity. They cannot provide any indoor dining or drinking services after 10 p.m.
Some of the safety measures implemented include; installing partitions, socially distanced slots machine, temperature-scanning cameras, etc.
Nationwide Safety Measures
Other states are also implementing various safety measures. Some governments have asked for a complete lockdown of casinos in cases where the number of infected people is on the rise.
In the first three quarters of the year, Atlantic City’s casinos recorded a 86% decline in gross profits. This figure also includes the total closure of the casinos during the peak of the pandemic.
The casino hotels averaged more than 70% occupancy in the third quarter. The Ocean casino had the highest average cost per room, with a room going for close to $250 per night. Resorts had the lowest average room at just $112 per night
