Gaming Report: The Latest Developments in the Wake of the Ongoing COVID-19 Pandemic

The Coronavirus (COVID-19) outbreak has assumed more significant proportions with over 2.5 Million COVID-19 positive cases having been reported across the globe. The death toll has crossed 177,415, according to the latest reports.

Nations the world over has been forced into some kind of lockdown – complete or partial, and like many other industries, the gaming sector, especially the live gaming industry is feeling the pinch.

Matt Maddox, the CEO of one the biggest casinos in Las Vegas, Wynn Resorts, in an opinion piece, advocated the need for reopening Nevada casinos in a phased manner starting next month. According to Maddox, the loss in business costs state casinos approximately $3 Million daily that runs up a loss of $180 Million for these establishments over two months.

Back in Asia, South Korea has become one of the first nations to reopen casinos, even while those in Singapore, Vietnam, and Cambodia remain closed. The Paradise Co. Ltd. has opened four of its casinos in South Korea. In contrast, another major operator, Grand Korea Leisure Co. Ltd., has decided to keep its three casino properties closed till the first week of May.

Feeling the onslaught of the economic pressure created by the COVID-19 pandemic, Malaysia-based casino giant Genting Group has, for the first time in its history, announced a temporary pay cut for its salaried employees.

Another casino company, Australia-listed Donaco International, has confirmed that its property in Vietnam will remain closed for another week, as will its Star Vegas Resort and Club, in Poipet, Cambodia.

In Portugual, the government has affected new legislation to restrict all forms of online gambling until the state of emergency in the country is called off.

The gaming regulator in Columbia has, in the meantime, expedited approval for legislation permitting online casinos with live dealers. The move is aimed to increase revenue inflow from online gaming for the country to deal with the ongoing pandemic.

Wynn Resorts CEO Matt Maddox Calls For May Reopening of Casinos in Las Vegas

Casinos in Nevada, like in many other parts of the U.S were forced to shut in mid-March. It has been over a month, and with no clear indication by the government on when they can be reopened, the financial burden of mounting losses is piling up on these operators.

In an opinion piece published in the Nevada Independent, CEO of Wynn Resorts in Las Vegas, Matt Maddox vented out these feelings by calling for the reopening of the Nevada casinos gradually by late next month.

Maddox pushed for a phased and planned reopening, while outlining the health and safety measures that could be adopted to prevent the spread of the novel Coronavirus.

Maddox suggested that the governor-appointed Task Force should focus on COVID-19 testing and the safe reopening of the local Nevada economy by early next month. Establishments could reciprocate by ensuring reduced occupancy and physical distancing measures, he added.

“Reopen parts of the local Nevada economy in early May. Begin with reduced occupancy, physical distancing measures in place, temperature checks, and no large gatherings. We all need to wear a mask. Wearing a mask is uncomfortable; however, it will allow our economy to reopen faster.”

Maddox pointed out that the current situation is costing the Nevada casinos $3 Million each day that adds up to $180 Million in losses over two months. He said, “Assuming in mid- to late-May we are still in line with the benchmarks, slowly begin to reopen the Las Vegas Strip with extensive safety measures in place.”

Wynn Resorts has been preparing its own health and safety procedures to follow when the property resumes operations.

South Korea Begins Reopening Casinos

Casinos in most parts of the world remain shut in the wake of the COVID-19 pandemic, but South Korea’s casinos have slowly started resuming operations.

On Monday, casino operator Paradise Co. Ltd. announced that it has reopened four of its venues in South Korea. While the first of the company’s casinos, Paradise Casino, Jeju Grand opened on April 13, the company’s casinos in Incheon, Walkerhill, Seoul, and Busan also began operations early this week. All of these casinos allow “foreigners-only.”

The casinos resumed operations after Prime Minister Chung Sye-Kyun eased social distancing measures and permitted several economic activities to resume.

On the other hand, Grand Korea Leisure Co. Ltd., which is a rival casino operator to Paradise, has decided to keep all three of its properties closed till May 6. Kangwon Land Inc. that owns and operates the only casino in the country where locals are permitted, has announced that it will reopen the casino on May 4.

Genting Announces Pay Cut as Singapore Extends Lockdown

Singapore has witnessed a sharp rise in COVID-19 positive cases these past few days, forcing the administration to extend the partial lockdown in the city-state to June 1.

Amidst the ongoing lockdown, two integrated casino resort operators, Las Vegas Sands and Genting Singapore, have ceased operations since April 7.

Sands had announced last week that it was suspending its dividend program in part so that it can continue paying its furloughed staff.

Meanwhile, the Malaysia-based Genting Group, for the first time since its inception in 1965, has announced that it will be taking up a temporary pay reduction of its salaried employees. Genting Singapore had proposed as much as a 20% temporary reduction of basic salary for employees. The salary cut would be as per the employee positions. On the other hand, Genting Hong Kong Ltd. had suggested up to 50% cut for those holding positions higher than vice-president.

The group later confirmed that the salary-cut measures would remain in effect till the year-end.

COO of the Genting Group, Tan Kong Han, in an official statement, said, “The businesses of the Genting Group have been badly affected, resulting in a significant reduction in revenue. When business resumes, we would expect to face challenges to regain the level of business prior to the pandemic due to the adverse impact that COVID-19 will have inflicted on the domestic and global economies.”

Donaco`s Vietnam and Cambodian Resorts to Remain Closed

Australia-listed casino firm Donaco International Ltd has confirmed that it’s properties in Vietnam and Cambodia will remain closed due to the COVID-19 led situation.

In an official statement, the company said that its Aristo International Hotel in Lao Cai, Vietnam, that was shut on April 1 would not resume operations under the present crisis. Donaco, in its filing, said: “The company believes the current COVID-19 situation poses a risk to the health and safety of staff and visitors at Aristo if operations resumed, which could have adverse long-term consequences for Donaco.”

Donaco has also confirmed the continued suspension of casino operations at its Star Vegas Resort and Club in Poipet, Cambodia. The temporary shutdown was in line with the Cambodian government restrictions, the company added.

Donaco said: “the closure of both casino operations [at Vietnam and Cambodia] will have a material impact on Donaco’s business. Donaco is successfully undertaking pragmatic measures to reduce costs, which will mitigate this impact to an extent.”

Earlier this month, Donaco had predicted a “cash burn rate” of $800K to $900K per month during the temporary shutdown of its two casinos. Such expenses were costs related to the maintaining of the casino assets and other corporate costs.

Portugal to Restrict Online Gambling During Lockdown

The government of Portugal is set to restrict online gambling during the ongoing COVID-19 shutdown. The members of the political party Partido das Pessoas, dos Animais e da Natureza (PAN) have introduced the bill – No. 326.

The bill did not specify the restrictions but simply called for “partial or total limitations on access to online gambling platforms” and added that the most vulnerable in society, such as minors, must be protected. The restrictions imposed are to remain in place for as long as Portugal is in a state of emergency.

The bill cited Spain as an example of a country that had instituted limits on gambling and restricted advertisements to broadcast between 1AM and 5AM during the lockdown.

The bill states, “There is an urgent need to guard against a situation that could potentially have very harmful effects – unlimited and uncontrolled access to online gaming channels, which is exacerbated by the partial stopping of the economy…People with impulse control, may feel less in control of their behavior and therefore gamble more, with worsening emotional and financial consequences.”

The bill claimed that daily online gaming revenue has increased by 18% since March 18, while online casino revenue has grown 24%.“We believe that it appears vita; to establish restrictions on access to online gaming platforms, avoiding intense play, which can trigger or worsen compulsive gambling habits.”

Colombia Expedites Online “Live-Dealer” Casinos

Columbia has extended its Coronavirus-lockdown till May 11, though sectors like construction and manufacturing are to reopen. As all casinos in the country remain shut, the Columbian gaming regulator, Coljuegos, has approved a measure that permits online casinos with live dealers.

The decision was taken by the regulator following a study into the revenue that permitting online gaming would generate. With the pandemic dealing a significant blow to the Andean country’s economy, Coljuegos has expedited the process that had begun in 2017.

With the live dealer, online casino gaming will offer gaming enthusiasts the experience of more enjoyable, interactive gaming. Coljuegos has indicated that international operators can also apply for a license, as long as they meet the regulatory and technical guidelines of the country.

One of the operators that will immediately benefit from the decision is the U.S-based Rush Street Interactive (RSI) that had entered Columbia in 2018 and already offers online casino gaming and sportsbook. The company now plans to launch live-dealer blackjack and roulette.

To make things easier for operators, Coljuegos has also permitted on-ground casinos to pay their fee for March and April over six months, while online casinos have been given a 50% reduction in monthly payments for March to May.