During the coronavirus pandemic the country is currently facing, casinos are taking a big hit. Many gaming facilities are usually open 24/7 and closed recently for the first time since they were built. Atlantic City, NJ, is among the cities feeling the hurt financially from these closures.
According to the American Gaming Association, these issues are costing New Jersey $540 million in revenue every month the casinos are closed. Atlantic City has a $2.9 billion casino industry that has been put on hold. This has also resulted in 26,000 workers that are left without jobs.
Clyde Barrow, a professor at the University of Texas Rio Grande Valley and an expert on the casino industry, told The Post, “It will be the biggest blow to the casino industry that we’ve seen in a lifetime.”
March Madness was an annual revenue stream for Atlantic City that was canceled this year. In March 2019, New Jersey collected $25.5 million in total gaming taxes.
This makes up of $16 million of brick-and-mortar taxes, $522,000 from sports betting at the nine casinos, $3.2 million from sports betting online, and $5.9 million from online casino play.
Online Poker Spike
New Jersey has an advantage to their neighbor New York, being able to continue their online gaming. While there are few events to bet on, they are still relying on online poker.
The state has recently seen a spike in the number of online players since people are staying at home and not allowed in casinos. NJ Online Gambling says that nearly every event is tripling its posted guarantee.
An example would be one recent $320 No-Limit Hold ’em Double Stack event. The initial guarantee was $50,000, but a total of 570 entries pushed the prize pool to $171,000.
However, this rise in online poker isn’t going to be enough to match the state’s numbers from last March. Even the optimistic estimates will leave New Jersey short around $10 million when compared to the same time last year.
Not only are the casino operators taking a hit, but the taxpayers will also be hurt from the shutdown of gambling options.
The Bounce Back
Many other businesses that surround the gaming industry on the Jersey Shore are also seeing the negative effect. The lavish casinos in Atlantic City drive far more revenue than just gaming.
The area consists of high-end hotels, shopping outlets, and dinner spots that have closed their doors. These businesses rely on the operation of casinos in the area and hope for a surge once the coronavirus problems have been addressed properly.
The country is doing everything possible to create the best situation for businesses to rebound sooner rather than later. Casinos will be among those that bounce back following the COVID-19 outbreak.
Casey Clark, vice president of strategic communications for the gaming association, made a statement about the “incredibly resilient” casino industry. He said, “Right now, we’re focused on working with the federal government so that all corners of the industry — from gaming hubs like Las Vegas and Atlantic City to regional and tribal gaming properties, suppliers and the small businesses that depend on us — have the ability to weather this unprecedented public health crisis.”