Golden Entertainment is one of the largest operators of small gaming venues in the United States. Like all other gaming companies, it’s been hit hard by the global pandemic and continues to see its revenue drop. This week, the CEO of this major gaming company began discussing the strategies it will take over the next six months.
Casino companies around the country are working on new strategies to increase their revenue flow. This new idea from Golden Entertainment is entirely unique, though. Today, we’re going to look at what the company has planned.
Revenue Reports For Golden Entertainment Have Been Released
Over the past seven days, casino companies around the US have begun releasing reports on their second-quarter revenue. As you’d probably expect, all these companies have seen their revenue reports plummet. Some are being hit harder than others.
Golden Entertainment released its 2020 Q2 report yesterday. In many ways, these reports exceeded the expectations of analysts. That’s surprising when considering the company saw its revenue drop by nearly 70% over April, May, and June.
Casinos made up for $39.4 million of Golden Entertainment’s revenue. That’s a staggering 75.2% drop when compared to 2019’s Q2. The company’s smaller gaming venues offering almost exclusively slot games earned just $36.3 million. This shows a 59.3% revenue drop.
Officials within this company claim these reports “exceeded expectations.” Fortunately, Q3 of 2020 is guaranteed to be significantly better. Most still expect that a major drop in revenue will be seen.
All casino companies are hurting right now. They are being forced to take new strategies in order to boost their earnings. Some are finding success switching things up and others seem to be lost.
This week, executives within Golden Entertainment offered some insight into what the company has planned for the rest of 2020.
Golden Entertainment’s Executives Offer a Glimpse Into Company’s Future Plans
In March, the US casino industry was shut down. Starting in June, this industry started to get back on track and most states now allow their casinos to operate. As we just mentioned, casino companies are looking at new, creative ways to boost their revenue earnings.
Several executives within Golden Entertainment spoke about the company’s future plans to the media this week. That includes CEO Blake Sartini, who claims the casino operator will begin looking to purchase “smaller, bite-sized” assets.
Executives also seem interested in breaking more into the emerging East Coast-gambling industry.
“And so adding density to the Eastern Seaboard for us is something we’ll certainly take a look at,” said Charles Protell, President of Golden Entertainment.
As we already mentioned, this company was happily surprised to see its revenue reports. Many credit the reduction in marketing efforts as a reason for this. Cuts to staff payroll and the resumption of casinos in different states such as Montana and Maryland has helped, as well.
No one expects Golden Entertainment to start buying any major casino-resorts this year. Instead, company officials want to continue buying small, local gaming venues. This may be the smartest move in a time when many are unwilling to visit large, crowded casinos.
Other companies seem focused on property sales right now.
Eldorado-Caesars Still Needs to Complete Casino Sales
Back in May of 2019, Eldorado Resorts announced it was purchasing Caesars Entertainment for an astounding $17 billion. It was the largest casino merger ever attempted. For more than a year, these two companies worked to complete this deal.
Various state gambling commissions needed to approve the deal. These regulatory bodies needed to ensure the merger would not result in monopolies in their states. The FTC also needed to give this deal the green light.
Late last month, this merger was finally completed. It took longer than many expected and didn’t come at the most ideal time, though. Now, the new Caesars is focused on selling some more of its casinos around the country.
Paying $17 billion is nothing to scoff at. This newly-merged company now needs to make up for that incredible amount of money. One way to achieve that goal is to sell casinos that may not be bringing in major revenue right now.
It’s a much different strategy than Golden Entertainment is taking. One is focused on selling and the other wants to make more purchases. We’ll need to wait and see which method ends up working out better as time goes on.
Stay tuned for more US casino news over the next few months!