Casino industry report charts sharp drop in 2020 revenues
LAS VEGAS (AP) — A national casino industry group said Wednesday the pandemic cut gambling revenue in the U.S. by 31% in 2020, compared with the year before.
The American Gaming Association’s annual Commercial Gaming Revenue Tracker put the revenue total at $ 30 billion for 2020, marking the first market contraction for the industry since 2014 and the lowest total since 2003.
“COVID-19 devastated our business and the employees and communities across the country that rely on casino gaming’s success,” association President and CEO Bill Miller said in a statement that also pointed to the effects of a “standstill” involving live entertainment, meetings and conventions.
“Hospitality and travel have been among the sectors hardest hit by the pandemic,” Miller said. “These numbers show the economic realities of COVID- 19 and underscore the importance of targeted federal relief and ramped-up vaccine distribution.”
The report from the industry advocacy and lobbying group noted the decrease in revenues in 2020 was far greater than the 8.4% drop charted from 2007 to 2009 during the Great Recession.
The organization reported what it termed positive momentum in the past
three months of the year, tallying nearly $ 9.2 billion in revenue — up 1.7% from the third quarter.
Commercial casinos lost 27% of normal operating days throughout 2020 because of mandated COVID- 19 closures and disruptions caused by hurri
canes along the Gulf Coast, according to the report. It estimated that casinos were open, with capacity restrictions, for just under 125,000 days during the year instead of more than 170,000 days.
Of 998 casinos in the U.S., the association said 911 have resumed operations since being allowed to reopen last summer. By the end of the year, 37 commercial casinos remained shuttered in Louisiana, Nevada, New Mexico and South Dakota.
In Las Vegas, MGM Resorts International announced Wednesday it will resume round- the- clock hotel operations March 3 at Mandalay Bay, Park MGM and The Mirage. The properties had implemented mid- week closures due to decreased business during the pandemic.
The association report said 2020 was buoyed by new options including more widespread legal sports betting, which reached an all-time high of $1.5 billion in revenue, up 69% year-over-year. iGaming revenue nearly tripled, to almost $1.6 billion.
Revenue from table games was down 39.4% for the year, and slot machine revenue was down 33.8%, the report said.
All 24 states with commercial casinos saw revenue contract in 2020, compared with 2019. The largest decreases were 79% in New Mexico, where closures lasted longer than other states; 57% in New York and 56% in Michigan, where casinos reopened relatively late; and 51% in Rhode Island, where casinos closed a second time.
MINNEAPOLIS (AP) — Minneapolis leaders said Wednesday they are beefing up security plans, preparing to close streets and making sure businesses and residents are well informed as the trial approaches for the former police officer charged in the death of George Floyd.
Mayor Jacob Frey said safety will be a top priority “during this very difficult time in our city” and that the trial of Derek Chauvin will likely increase trauma for many, especially as a verdict draws near.
“We believe it is on us to honor the magnitude of this moment and ensure that our families in this city feel safe,” Frey said.
Floyd, a Black man who was handcuffed, died May 25 after Chauvin, who is white, pressed his knee against Floyd’s neck as Floyd said he couldn’t breathe. Floyd’s death sparked protests in Minneapolis and days of violent unrest in which buildings -- including a police station -- were burned and damaged.
Chauvin, who was fired, is charged with second- degree murder and manslaughter. Jury selection in his trial is scheduled to begin March 8; opening statements are scheduled for March 29.
The city has already started installing a security perimeter around the Hennepin County Government Center, City Hall and nearby buildings.
Frey said a law enforcement presence in the city will increase in coming weeks, and will peak during the trial, with the help of up to 2,000 National Guard members and 1,100 law enforcement officers from 12 agencies.
On Monday, the Democratic-controlled Minnesota House pulled a bill that would have created a $35 million fund to bolster security during Chauvin’s trial. Frey said Wednesday that its time to pass that measure, noting that Minneapolis has
seen a dramatic loss in revenue due to COVID-19.
“There is no place for gamesmanship or politics over these next couple of months in ensuring the city of Minneapolis is safe,” he said.
Gov. Tim Walz urged lawmakers to come together to ensure law enforcement has enough resources to protect the rights of those who want to peacefully protest and to keep people safe.
“We will execute a plan that I believe will do the things neces
sary, but it would sure be helpful if we did it together,” Walz said. “This sentiment that, ‘We don’t have to do anything, they’ll take care of it,’ ... That’s a pretty reckless sentiment.”
The intersection at 38th Street and Chicago Avenue, which has become a memorial to Floyd and a community gathering place, will remain closed to vehicle traffic until after the trial. Sixth Street South will be closed at the courthouse starting March 1.
Erik Hansen, the city’s director of Economic Policy and Development, said the city is advising business owners to consider emergency preparedness plans, add physical barriers such as boards over windows or security gates, make sure their insurance policies are up to date, and upload important records online.
The city’s Office of Violence Prevention is working on a tool kit for neighborhood groups and communities to help those who are most impacted by violence deal with trauma that could be triggered by the trial or protests. The city is also expanding its efforts to keep residents informed, with plans to send out information on social media, radio stations and other channels to help dispel rumors, address community trauma and provide information on street closures and other public safety issues.
City Council member Jamal Osman said the first step in rebuilding trust is honesty and good communication.
“The city cannot control what happens in the courtroom across the street. And we cannot, unfortunately, control what happened in the past,” Osman said. “But what we can control is our future. How honest, how transparent, and how direct we are in communicating with our affected communities. Today is a good first step.”