By some accounts, the U.S. has not yet reached the estimated maximum number of cases of coronavirus contagion. President Trump, based on information he’s been given, doesn’t expect the peak to happen for another couple of weeks, and this has forced him to take additional measures to ensure federal health-related guidelines are maintained. As a result, these measures will remain in effect until the end of April, which is going to delay the ability of casinos and other businesses to get on the road to recovery.
Among the various measures implemented by the federal government, based on recommendations by the Centers for Disease Control and Prevention (CDC), are things like self-isolation as much as possible, reduced travel, remote work if appropriate and reducing any type of gathering to a maximum of ten people. All of these effect casino operations, and the initially analysis has put industry losses at above $1 billion for a two-month shutdown spanning February and March. Tacking on additional month is going to further devastate the industry, and could lead some companies into bankruptcy.
Across the country, states have ordered casinos to shut their doors and turn off the lights, at least for the time being. The gambling venues have complied, but not all are subject to state-level regulations. Tribal gambling venues aren’t required to adhere to state orders, since they’re regulated by the federal government, but it is in their best interest to follow state guidelines – at some point, gambling compacts will come up for renewal. There don’t appear to be many issues, though, as, out of the 989 commercial and tribal casinos across the country, less than ten are still open, and that number continues to drop.
Trump is expected to provide a detailed update on the situation tomorrow at the latest; how this new information influences states and their own lockdown orders isn’t clear. Many states, such as Ohio, Illinois and Indiana, have shut down casinos through some point in the first week of April, and could change the parameters once new information is released.
In what would have been an unprecedented move in the U.S., there had reportedly been talk of completely shutting off New York, New Jersey and Connecticut from the rest of the country like a scene out of one of a number of Hollywood viral epidemic movies. However, Trump appears to have backed off this possibility, calling on states to beef up their efforts on policing their borders.
Despite the massive economic impact caused by the coronavirus, there’s a light at the end of the tunnel. Apart from the fact that most casino operators had reserve funds to get them through the shutdown, the $2-trillion stimulus package just approved by the federal government will provide some relief directly to all businesses. It will also provide financial assistance through several channels to individuals, which will allow the economy to start to crank up once again.
