Prior to March of this year, the casino industry in the United States was surging. Most states were earning a huge amount of revenue from their gambling venues. That is no longer the case. According to new reports, US casino revenue continues to plummet.
Some states are being impacted more than others. New reports indicate casinos in Pennsylvania, New Jersey, and Delaware are all losing an incredible amount of money right now. Today, we’re going to look at exactly how much revenue has fallen in these states.
Let’s get into it!
Certain States Are Now Beginning to Open Up
Since March, states around the country began going into lockdown. Infection rates of the new coronavirus have risen in some areas and started to fall in others. Certain parts of the US are now experiencing relatively low rates of infection and are preparing to open back up.
This includes Georgia, which has already lifted most social distancing measures. Governor Brian Kemp has allowed businesses like restaurants to open, yet things are far from normal. Some health experts believe that opening back up to early will result in a major increase in cases in some states.
It’s a very difficult situation. State leaders are trying to weigh the pros and cons of allowing businesses to start operating again. One state that’s being hit particularly hard due to these new regulations in Nevada.
Cities like Las Vegas are nearly shut down right now. Tourism and gambling account for a huge percentage of the city’s revenue. No visitors are coming to Las Vegas right now and this revenue is simply not flowing in. Casino officials have now begun discussing plans to get things back to normal.
Las Vegas Mayor Carolyn Goodman is now calling for the city to open back up. Interestingly, several casinos here are preparing to open their doors in late May. We’ll need to wait and see how long it takes for revenue to start increasing here again.
New reports are revealing how the gambling industries in other states are doing right now.
US Casino Revenue is Dropping Quickly
We’ve been reporting on how much money certain casino companies are losing for weeks. Several of the top casino companies in the US have stated things need to change. New reports are now beginning to surface that show how much money has been lost in Pennsylvania, New Jersey, and Delaware.
These three states all have something in common. Online casino gambling has become legal and regulated here. Unfortunately, it does not appear these internet casinos are able to make up for the revenue being lost by the land-based casino shutdown.
Pennsylvania’s gambling revenue dropped from $304 million in February to just $154 million in March. New Jersey saw a decrease of $124 million last month. That’s an incredible $274 million lost between these two states in just one month.
It’s clear that online gambling is surging in these states. In fact, revenue from Pennsylvania’s online gambling platforms increased by 24%. Doug Harbach, a spokesman for the Pennsylvania Gaming Control Board, spoke about this situation to the media this week.
“We certainly have seen an uptick in online play, in particular table games, the biggest being poker,” he said. “It does not make up for the casino losses. It will not come close to satisfying the tax revenue we’ve been used to.”
What’s Happening in Atlantic City Right Now?
There’s been a lot of discussion about Las Vegas over the past few weeks. Many have talked about how this city will approach the new regulations around the country. Interestingly, Atlantic City hasn’t been a major talking point.
Based on the new US casino revenue reports, it’s clear that this city is hurting. All of the casinos are shut down here and it may be months before they’re allowed to open. Some have expressed fear that some of the gambling venues here will be forced to shut down permanently.
Gambling revenue dropped by 44% last month compared to the same month in 2018. Online gambling revenue increased by nearly ⅔ last month, though. Many casino companies here are likely to start investing more into their internet gambling marketing efforts.
Things are already beginning to change in Atlantic City. Last week, Caesars Entertainment announced it was selling Bally’s for $25 million. More property sales may start taking place here over the next few months.
US casino revenue is falling fast. Some states are now choosing to open up different businesses. Unfortunately, it may be a long time before any land-based casinos are able to open to the public again.
Stay tuned for more US casino news over the next few weeks!