Nationwide gaming revenues topped $9 billion during the third quarter, according to a report released Monday by the American Gaming Association.
But with COVID-19 infections spreading rapidly across the U.S., and several states considering rollbacks, curfews, and business lockdowns in order to slow the pandemic, casino revenues may be looking at another drop-off as 2020 ends.
“While these quarterly results are promising, the reality is a full recovery is dependent on continued public health measures to control prevalence rates,” AGA CEO Bill Miller said in a statement.
The $9 billion in commercial casino revenue was a 19% decline from the 2019 third quarter. However, the result was a 294% increase over the second quarter of 2020, which was heavily impacted by the nationwide shutdown of the casino industry – nearly 1,000 commercial and tribal casinos in 43 states – due to coronavirus.
Year-to-date, gaming revenue in the U.S. is down 36.5% in the first nine months of 2020, and gaming operators are now seemingly facing a new round of potential lockdowns.
Michigan’s three commercial casinos in Detroit are expected to close Wednesday for three weeks under an order from Michigan’s governor that included shutdowns of other businesses and activities in the state.
Illinois, Massachusetts, New York, and Colorado have rolled back activities that have included the states’ casino markets.
Miller used the AGA’s news on gaming revenues to push once again for Washington D.C. to provide a COVID-19 relief package that includes the nation’s gaming industry.
“As state and local officials respond to current COVID-19 outbreaks with additional restrictions, urgent Congressional action to provide COVID-19 relief is even more crucial,” Miller said. “Gaming employees and communities depend on it.”
In a statement emailed to the gaming industry, Miller said the AGA will continue to advocate for a relief package “that aids employee retention and rehiring, provides liability protections for responsible operators, supports tribal nations, and jumpstarts the travel and tourism industry.”
The AGA said Monday more than 100 casinos reopened between July and September, with 902 commercial and tribal casinos (90.8% of total) operational by the end of the third quarter, compared to 800 (80.8% of total) at the start of July.
Miller said the gaming industry requires a boost as it works past the COVID-19 shutdowns that decimated the balance sheets of casino operators and gaming equipment providers and forced the layoffs of thousands of gaming employees.
“Our industry continues to prioritize the health and safety of our employees, customers, and communities above all else,” Miller said.
There were a few bright spots in the quarter.
Five states grew third-quarter revenues from a year ago: Arkansas, up 3%; Mississippi, up 2.8%; Ohio, up 7.5%; Pennsylvania, up 3.8%; and South Dakota, up 6.1%.
Americans legally wagered a record $5.95 billion on sports during the three months, generating $352.3 million in gaming revenue. The figures marked the second-highest ever quarterly total ever for the activity, which is now available in 19 states and Washington D.C.
Online gaming contributed $435 million to the third quarter revenue total, up 8% over the second quarter and 234% from the 2019 third quarter.
Jacqueline Grace, president of Atlantic City’s Tropicana casino, told The Associated Press she is not surprised the industry regained as much of its previous revenue as it did in the third quarter.
“People are looking for opportunities to escape what is happening around us,” she said. “Coming to a casino is entertainment, and people still want to be entertained.”
Grace said one of the biggest challenges the industry is facing is “the continued uncertainty.”
“You have to ensure compliance, whether it’s your team members or your customers,” she said. “That’s a new aspect of the job.”
(Wayne Parry of The Associated Press contributed)
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
