LAS VEGAS (AP) – A national casino industry group said Wednesday the pandemic had reduced US gambling revenue by …
LAS VEGAS (AP) – A national casino industry group announced on Wednesday that the pandemic had reduced US gambling revenue by 31% in 2020 compared to the previous year.
The American Gaming Association's annual Commercial Gaming Revenue Tracker put sales for 2020 at $ 30 billion. This was the first market decline for the industry since 2014 and the lowest since 2003.
"COVID-19 has devastated our business and the employees and communities across the country that depend on the success of casino games," said Bill Miller, president and CEO of the association, in a statement that also addressed the impact a "deadlock" was pointed out to the live entertainment, meetings and conventions.
"Hospitality and travel are among the sectors hardest hit by the pandemic," Miller said. "These figures show the economic realities of COVID-19 and underline the importance of targeted federal aid and increased distribution of vaccines."
The industry advocacy and lobby group report found that the 2020 sales decline was far larger than the 8.4% decline seen from 2007-2009 during the Great Recession.
The organization reported positive momentum in the final three months of the year, posting revenue of nearly $ 9.2 billion – up 1.7% from the third quarter.
Commercial casinos lost 27% of normal operating days in 2020 due to mandatory COVID-19 closures and disruptions caused by hurricanes along the Gulf Coast. It was estimated that capacity-constrained casinos were open for just under 125,000 days instead of more than 170,000 days during the year.
Of 998 casinos in the United States, the association said 911s have resumed operations since they were allowed to reopen last summer. By the end of the year, 37 commercial casinos in Louisiana, Nevada, New Mexico and South Dakota remained closed.
In Las Vegas, MGM Resorts International announced on Wednesday that hotel operations would resume 24/7 at Mandalay Bay, Park MGM and The Mirage on March 3. The properties had closed mid-week as business had declined during the pandemic.
According to the association's report, 2020 was helped by new options, including more general legal sports betting, which hit an all-time high with revenue of $ 1.5 billion, up 69% year over year. IGaming revenue has almost tripled to nearly $ 1.6 billion.
Table game sales declined 39.4% and slot machine sales decreased 33.8% over the year, the report said.
All 24 states with commercial casinos saw revenue declines in 2020 compared to 2019. The largest declines were 79% in New Mexico, where closings lasted longer than other states. 57% in New York and 56% in Michigan, where casinos reopened relatively late; and 51% in Rhode Island, where the casinos have closed a second time.
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