States around the country are once again implementing new regulations towards their land-based casinos. It now appears that Michigan is taking some drastic measures. New reports claim all of the commercial casinos in Michigan will be shutting down for three weeks beginning on Wednesday.
It’s tough news for the casinos in this state. Lawmakers in the state clearly feel these regulations are necessary right now. Today, we’re going to talk about which companies are being affected by this new rule.
Let’s get into it!
MGM Resorts Lost $495 Million in 2020’s Quarter Three
Casino companies around the world have been taking massive financial hits throughout 2020. Interestingly, the casino industry in the US has been performing significantly better than in many other countries. Macau, for example, has been seeing more than 90% losses in monthly revenue this year.
Each state has seen its casino revenue earnings fluctuate. Many casino destinations such as Las Vegas are improving. Gaming revenue here is still significantly lower this year than it was in 2019, though.
Casino companies are taking different approaches to boost revenue figures. MGM Resorts has opened nearly all of its properties around the country. That includes Park MGM in Las Vegas, one of the last properties on the Las Vegas Strip to open its doors.
Unfortunately, MGM Resorts is still experiencing major drops in gaming revenue. A couple of weeks ago, reports surfaced that the company saw $495 million in operating costs during 2020’s third quarter. Despite the large drop, CEO Bill Hornbuckle gave an optimistic outlook for the future of the company.
No one really knows how things will look in 2021. Tourism rates in major casino destinations are falling as cases of Covid-19 increase. Some states are even forcing their casinos to close to the public once again.
That includes Michigan. Here’s what we know about the casino shutdowns here.
Gov. Whitmer Announces Casinos in Michigan Are Shutting Down
Michigan has been seeing a steady increase in Covid-19 cases over the past few weeks. Health experts have been warning that this trend will continue unless major restrictions are implemented. State leaders are listening to that advice and have begun taking new steps to cut down on infection rates.
Over the weekend, Governor Gretchen Whitmer announced that all of the commercial casinos in Michigan will close to the public for three weeks beginning on Wednesday. The state has ordered most indoor retail spaces to close. Restaurants can continue offering outdoor dining for now.
“If we don’t act now, thousands more will die, and our hospitals will continue to be overwhelmed,” Whitmer said. “We can get through this together by listening to health experts once again and taking action right now to slow the spread of this deadly virus.”
This will certainly affect MGM Resorts, which operates a popular casino in Detroit. Company officials have not yet commented on this new rule. Some analysts believe other states will soon order the same regulations.
Only commercial casinos are part of this new state order. The 24 tribal casinos operating in Michigan are able to operate under their own rules and regulations. As of now, it’s unclear whether or not the casinos will decide to shut down, as well.
Things aren’t getting any easier for casinos. Some are now questioning whether or not the casino industry in Las Vegas will be forced to close their doors again.
Will the Casinos in Las Vegas Shut Down?
No city in the US has been as affected economically as Las Vegas. This is a city that relies heavily on its tourism industry. With tourism rates low, many of the businesses here continue to see large drops in revenue.
Things have been steadily improving here since the casinos were allowed to reopen in June. Unfortunately, some now fear another major shutdown could be on the horizon. Several major casino companies are working with state leaders to avoid this situation.
We’re already seeing some limited shutdowns in the city. Some of the biggest casino-resorts here have recently been forced to close their doors during the week. With the drop in visitors, it’s not economical for these properties to remain open on weekdays.
Another major shutdown like the one implemented in March has not been announced. As many analysts point out, this would be devastating for the many businesses relying on tourism and gamblers. Instead, we’re more likely to see increased safety measures and shifted hours at the major casino-resorts.
There are reasons to be optimistic, though. With an effective vaccine, things may begin slowly returning to normal next year. We’ll continue offering updates on different state casino regulations over the next couple of months.
Are you surprised to see the commercial casinos in Michigan shut down? Do you think other states will order this, as well? Let us know in the comments section below!