Thursday, July 09, 2020

Business

Will land based casinos survive corona lockdown?

PUNJAB NEWS EXPRESS | June 02, 2020 11:53 AM

Coronavirus has put all industries to a tough position. Land based casinos are no different, although one may consider them having almost endless money supply to support themselves throughout this period. Although no one is sure what is going to happen to land based casinos, some factors are ought to be crucial in terms of survival.

 Finances are undoubtedly the most crucial factor in whether a certain land based casino survives the corona lockdown or not. According to analysts, the most famous casinos in Macau are able to survive without incoming revenues anywhere from 6-24 months, further stating that 6 months could be the maximum for some casinos. Operating costs are running, and slot machines have to be fixed even if there are no players. The most famous casinos are located in areas where the land is extremely expensive. If the lockdown period is prolonged, some may have to apply for major loans, which is by default a risky option during an unstable economy. Considering all this, only one thing can be stated - The more stable finances the casino has, the more likely it is to survive the corona lockdown.

If finances are important, then so are politics. Countries have utilized very varying tactics in the battle against the virus. China closed down the entire province of Hubei and other major cities faced strict rules as well, but the country is starting to open up. Some casinos in Macau have already opened their doors to customers with certain restrictions. In Las Vegas there is intense pressure to open casinos, as a huge number of locals work in gambling industry and thus are now unemployed. But this mainly applies to specific areas - especially in Europe, land based casinos are not likely to open for a long time. In addition to each country's own policies towards corona lockdowns, topics such as a possible monopoly position within the country as well as whether the industry is considered valuable have an effect on the end result. If gambling is a state monopoly, then the state has its own interest in keeping its land based casino alive. Also, gambling may produce a great part of a country's GDP, thus the industry may be more likely to receive aid and resources based on its importance for the country.

Although not as important, culture may play some role in regards to the question. If people are more prone to visit land based casinos compared to online, then there also will be those who are ready to visit casinos the moment they open up. In tech-focused countries where online gambling has taken a great part of the gambling industry there is less urgency to head to land based casinos. Furthermore, casino destinations such as Las Vegas and Macau are likely to survive even though the lockdown is going to have an effect on them, as these places have their own ´casino culture´.Thus, the reputation is likely to keep land based casinos alive compared to smaller casinos in areas that are not considered as so-called casino destinations.

Online casinos have been the biggest competitor of land based casinos. Although some enjoy going to both casinos, playing from your own device wherever you are is just more convenient and accessible. Those who want to focus on game play rather than dressing up to spend a night at a land based casino have already found their way to online gambling websites. Online casinos like the one we present here at RoyalCasino offer a good alternative for land based casinos, and now that many land based casinos have been forced to shut down until further notice, it may be the trigger for those players to finally try out and explore online casinos.

Times will be tough even for the survivors. Earning back the losses from the lockdown are affected by two main key factors. First and foremost is customers´ behavior. Even if the doors to the casino are open, it does not mean that customers are ready to return. As no one truly knows when it is safe to go outside and interact without fear of getting the virus, people by default have started to consider whether going somewhere is necessary and worth the risk. Secondly, online gambling seems to be on a small rise during the lockdown. If those customers are new to the online environment and find it attractive, it may be challenging to lure them back to land based casinos. Also, public discussion on whether opening land based casinos is ethical could pressure them to shrink their operations lowering the expected profit.

Are you going to head to your local land based casino once the corona lockdown is over or rather enjoy convenient game play in the comfort of your home?

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