Changes in Restrictions Put Casinos in Flux

As coronavirus has its day around the world, it is affecting various countries in a multitude of ways. Some countries are easing up restrictions related to business opening hours and the number of people who can be gathered in one place at a time. Other countries are locking down tighter as they face a second wave of coronavirus or fear an impending upswing in cases.

This is having an unprecedented effect on the business of casinos, as they rely on heavy traffic to turn a profit. With numerous restrictions on building capacity in place all around the world, casinos are finding themselves one of the hardest hit businesses during the global pandemic.

In the Netherlands, the Dutch government is enacting stricter lockdown protocols. On the 27th of September, the government added curfews for more regions of the country than it has previously. These curfews are in effect for casinos and other businesses that tend to have high building occupancy rates.

The government is requiring that staff wipe down slot machines after each use and that customers sanitize their hands upon entering the facility. Customers are asked to keep 1m apart in maintaining social distancing protocols. The casinos are allowed to have a 100-person occupancy, and each facility is supposed to have a Corona Coordinator. Casinos were only allowed to reopen in the Netherlands after July 1st, but these new curfew measures that have extended through much of the country are expected to remain in place until the coronavirus case numbers drop considerably.

In England, the government are businesses are prepping for an expected second wave of the virus. Even though casinos and a number of other businesses were allowed to open in August, curfews and various restrictions are in place to limit the spread of the coronavirus. For casinos, that means a 10pm curfew, which is significantly impacting the opportunity for profit.

Betting and Gaming Council chief executive Michael Dugher has requested that the government enact measures to preserve jobs or consider reducing the curfew and other restrictions that make it difficult for the casinos to operate as they normally would. As of right now, Dugher believes the restrictions will reduce the casinos to as much as 75% of their usual income, impacting about 7,000 jobs, all of which could be lost.

Such a heavy toll on the casino industry could take years to reverse, and even longer if the coronavirus restrictions stay in place for longer than expected.

Because the restrictions don’t have a set end date, casinos are having trouble adjusting to the changes and reassuring their workforce that they will have job security. They are unable to plan effectively for the future, as they could be shut down at any time in the wake of a new coronavirus wave. Further restrictions could be enacted, tanking their already limited profits.

While income is severely impacted for physical casinos, the online casinos are flourishing. They are seeing some major increases in site traffic and profits, which come and go over time but are up on the whole for many casinos online. The online casino industry is experiencing huge profits and massive site traffic boosts thanks to all those customers being turned away from physical casinos. Because of occupancy limits and curfews, as physical casinos suffer, the online ones are able to reach a wider audience and enjoy a significant sales boost.

While tax relief has been requested for the gambling industry in the UK and in other parts of the world, it remains to be seen how much more the governments will be willing or able to give out as they work to limit the spread of the virus. The economic effects may just be one of the most important factors in determining how long curfews and other restrictions can be kept in place. As governments continue to bail out the gambling industry and other industries, they are quickly draining their reserves and finding it difficult to sustain their economies.

Many people turn to online sources of entertainment or online business models as the physical opportunities dry up, but this is not sustainable over the long term if an entire country’s economy is suffering.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes