The New Jersey Division of Gaming Enforcement provided a press release on Monday that revealed the financial details of the gambling industry during the second quarter. Of course, the months April, May and June were a time when the casinos were shutdown in an attempt to slow the spread of the coronavirus. Little to no revenues were coming in at this time. The loss was so great that the DGE stated that data is not comparable to 2019.
Details of the Second Quarter
Instead of providing a listing with gross operating profits, the DGE reported a loss of $112 million for the industry. The figure will not be compared by the DGE due to the fact that a pandemic was not in place in 2019 and all casinos were operational.
However, the data is available. In the time frame of April, May and June 2019, the industry earned $159.3 million. For 2020, casinos have lost $82.4 million and in 2019, the first half generated just over $245 million. Big money is missing this year due to the casino closures. On top of that, one must consider the cost to the operators to maintain their properties during the closure as well as pay for employee benefits and wages.
The Borgata was a big loser on the reports, having shown a loss of $40.2 million. In 2019 during the second quarter, the operator was up $55.4 million. Every casino in the state was short during the second quarter, all due to the closures, except the Golden Nugget.
The star casino of Atlantic City has such a strong online gaming product that it was able to see a profit of just over $3 million for the quarter. However, this is still down from $10 million in profits seen during 2019.
It is going to take some time for the casinos to be able to gain ground after being shut down for several months. Even now, if they are bringing in revenues, it is not what it should or could be. Casino capacity is limited to 25%, which means less visitors spending money. Food offerings are limited, and alcohol is a no-go, so the venues are losing out on this money as well.
There are additional costs to consider as well upon reopening. The casinos must increase cleaning of the properties to ensure guests and employees are safe from Covid. Hand sanitizer, plexiglass dividers and other elements are included in the changes. All of this cost’s money.
A big turnaround will not be seen until the casinos are allowed to offer more amenities and larger capacity. There is no set date as to when either of those options will change. For now, the casinos must muddle through and hold on until the virus lets up enough that the state feels it is safe to allow for more options. Hopefully, it won’t be long and the casinos can egin to see more traffic and higher revenue numbers. Only time will tell as to how the industry will fare.