NJ Casino Shutdown Could Last 2 Months and Cost $1.1 Billion
The American Gaming Association (AGA) has said that due to the current issues, Atlantic City casinos look set to close for at least two months. This could lead to a possible loss of $1.1 Billion in lost economic activity. There are many reasons that this figure is so high. All and all, the closure will have both direct and indirect impacts. Obviously, this includes gaming revenue. However, there will be other losses, including food and drinks, and hotels. Ultimately, it will affect not only workers but vendors and suppliers too. Recently, the CEO of the AGA said that the impact of this would be “staggering”. He said that the “implications extend far beyond the casino floor”. It will affect employees, families and whole communities.
A Necessary Evil
At the end of March, Governor Phil Murphy declared that all 9 New Jersey casinos were closing. The whole of the US is battling to control the virus, and the closure of the casinos is necessary. Unfortunately, at the moment, there is no date for them to re-open. All and all, they’ll stay closed until it’s safe to be otherwise. However, online gaming will keep on going so players can keep on playing safely at home. This is a massive hit to the industry. In total, it will affect around 33,000 casino workers in New Jersey. These numbers consist of around 26,500 Atlantic City workers.
Pouring Water on a Fire
Up till now, the US betting industry has been red hot. It got off to a flying start when the Hard Rock Hotel & Casino Atlantic City and Ocean Casino Resort opened in June 2018. Since then, the industry has reported 21 months of revenue growth. Last year, all 9 casinos boasted over $3.29 Billion in revenue. This is a massive challenge. However, everyone agrees that it’s necessary for the health of all. For now, it seems as though there is no alternative. Hopefully, it won’t be long before it starts getting back to normal.