According to Steve Sisolak who is Nevada’s Governor, gaming businesses including land-based casinos that operate within the state’s borders will be allowed to re-open starting from the 4^th of June after over two months of being shut down. Just this week, the state’s Governor Mr. Sisolak released his official statement in which he shared more details about the state’s casino gaming industry.

In this official statement, Mr. Sisolak also released his Roadmap to Recovery Phase 2 plan according to which the Las Vegas Strip casinos and other gaming operators get to resume their operations the following week. Commenting on the overall situation regarding mandatory shutdowns of casinos and other gaming businesses, Steve Sisolak said in his official statement that residents of the state have done a great job with helping the state’s officials and health care providers to flatten the curve.

Roadmap to Recovery Phase 2 Ready to Start

He also said that he is thankful to every single resident and to every single business in the state for understanding the severity of the ongoing coronavirus pandemic. He also said that he is thankful to everyone who has taken those necessary safety measures such as wearing protective face masks. His statement also reads that their collective actions which lasted for over two months have helped the state’s officials to finally start the Roadmap to Recovery Phase 2 which includes re-opening gaming businesses.

Before this statement, the state’s Governor Mr. Sisolak revealed in his public pre-Memorial Day press releases that as long as there is not a great spike in the number of new infections with COVID-19, he may allow the state’s land-based casinos to re-open starting from the 4^th of June. In this press release, he said that he will first discuss these options with health officials as well as with the main casino gaming governing body for the state of Nevada, the Nevada Gaming Control Board.

Positive Data Trends

Since there was not a spike in the number of new COVID-19 infections in the state, the state’s casinos can finally resume their operations. There was a meeting held on the 26^th of May and here Steve Sisolak revealed that based on rather positive data trends or downward trends of COVID-19 infections in the Silver State, he let the Gaming Control Board’s officials know that he is rather confident in the re-opening target date set for the 4^th of June.

While discussing his further plans with the Gaming Control Board’s chair, he also mentioned a thirty-one-day sustainable and consistent downward trend in new infections with COVID-19 as well as downward trends in hospitalizations related to COVID-19 infections.

Back in March, the Gaming Control Board’s officials have established a series of safety and health guidelines in order to protect casino visitors as well as all employees and other included parties. At the conclusion of the latest workshop which was held by the Gaming Control Board that is responsible for the casino industry in the Silver State, Sandra Douglass Morgan who is the board’s Chairwoman said that the board would release another industry notice with some extra compliance requirements and rules that gaming business which re-open after the 4^th of June will have to follow.

Commenting on this, the state’s Governor said during the latest press call that agents and other employees of the Nevada Gaming Control Board will work hard to ensure that all of the rules and safety guidelines set by the board are being followed by gaming businesses as well as their customers. Needless to say, these guidelines will include wearing protective face masks, as well as practicing social distancing.

As revealed several days ago, Macau casino operators have seen rather disastrous gross gaming revenues for the month of April. In fact, the thirty-nine casinos which operate in Macau saw their gross gaming revenues for the previous month massively by around 96.8% when compared to the same period last year.

The casinos’ gross gaming revenues for April hit just around $94.42 million due to the ongoing coronavirus crisis and related travel restrictions alongside other measures that were implemented by the government of Macau to prevent the spread of the highly-contagious virus strain. At the time of writing this, the COVID-19 pandemic or the coronavirus pandemic of coronavirus disease has affected over 3.5 million individuals globally while over 247,000 individuals lost their lives due to the coronavirus disease and related health complications.

The coronavirus outbreak was identified back in December last year in the Chinese city of Wuhan. It was classified as a pandemic by the World Health Organization back on the 11^th of March. Needless to say, the coronavirus pandemic has caused extreme socioeconomic disruptions globally including the largest global recession after the Great Depression which took place in the 1930s. The ongoing coronavirus crisis has also caused the cancellation and postponements of cultural, religious as well as sporting and other events alongside other negative consequences. Every single industry has been affected by the ongoing coronavirus crisis and the casino gaming industry is no exception.

Catastrophic Figures for April

Back to the Macau casino industry, it is one of the biggest, most profitable industries of this kind in the world with a number of iconic venues operating here. However, the thirty-nine casinos which are active in the area have not been immune to the rather catastrophic consequences of the ongoing coronavirus crisis and related safety measures employed such as mandatory lockdowns and travel restrictions.

According to one report released by GGRAsia, the official figures from the former Portuguese enclave’s Gaming Inspection and Coordination Bureau suggest that the casinos in the area saw a massive decline of over 85% in their gross gaming revenues when compared to the month of March when these figures hit around $658 million. This means that the gross gaming revenue figure for the four months of 2020 is around 68.7% behind the figure recorded for the same four-month period last year which was approximately $3.9 billion.

GGRAsia in its report also cited Sanford C Bernstein Limited international brokerage which declared that this extreme drop in gross gaming revenues for April had been driven by travel restrictions which are in place since March. The same international brokerage company also declared that the substantial drop in gross gaming revenues for Macau casinos in April had been also driven by disappointing hold rates. The investment company also shared that the thirty-day period had seen VIP high-roller sections within the city’s iconic casino facilities top mass-market figures with significant volatility and higher hold rates.

Estimated Visitation Also Significantly Lowered

The same brokerage company also reported that its estimated visitation into the former Portuguese enclave from areas in mainland China is lowered by around 95% when compared to the same period last year. Nonetheless, the company expects to see coronavirus pandemic-related measures including travel restrictions to start being lifted in the following several weeks. Commenting on the news, Credit Suisse AG and Kenneth Fong said that Macau’s casino gaming market will most likely bounce back quickly once the government in China starts allowing mainland China citizens to travel into Macau. Kenneth Fong also added that Macau’s casino market’s mass recovery will most likely be gradual as gross gaming revenues bounce back to 80% in the following months.

Even though Macau-based casino-operating companies recorded a massive 80% drop in gross gaming revenues for March, they will not get financial support, at least not yet. As reported by several news outlets, the casino operators responsible for thirty-nine casino facilities in Macau are excluded from a $1.7 billion-worth economic stimulus program which was crafted by the government with the main goal to help struggling business and companies during these difficult times with the coronavirus pandemic ravaging across the globe

According to one report released by Inside Asian Gaming, the former Portuguese enclave’s government just recently declares that the new economic stimulus program has been carefully crafted to help companies as well as Macau residents with sustaining employment in the area as well as with stimulating local demands following the global financial downturn directly caused by the coronavirus pandemic.

As estimated on the 14^th of April, there are more than 1.9 million cases of COVID-19 infections around the world while COVID-19 resulted in more than 119,000 deaths globally. At the same time, more than 453,000 infected individuals have recovered. The fatality rate was set at four percent in China, while it varies significantly across countries. The coronavirus pandemic had led to worldwide socioeconomic disruptions and it has affected every single industry in the world including the land-based casino industry.

Economic Stimulus Program Aimed at Small to Medium-Sized Companies

It was also reported by Inside Asian Gaming that the newly-designed economic stimulus program by the government of Macau is aimed to help small to medium-sized business ventures and companies. As estimated, the economic stimulus program is worth around $1.2 in addition to $450 million included as electric vouchers to help local residents. Each of these electric coupons for local residents is set to be valued at $626 and residents will be able to use it to purchase a variety of services and products excluding things such as telephone bills and utility.

Before this economic stimulus program emerged, residents of Macau received very similar electronic vouchers worth around $375 individually back in February as Macau struggled greatly with its coronavirus outbreak which eventually led to all Macau thirty-nine casinos to shut down their operations for a fifteen-day period which was extended later on.

Back to the latest economic stimulus plan, it will also see around 260,000 locals Macau employees gifted with a valuable cash subsidy of between $1,878 and $25,000. This support will be available for every one of Macau’s 40,000 small and medium-sized companies and business ventures. At the same time, Macau casino operators are not included in this new economic stimulus program.

Macau Finance and Economy Secretary Reacting to Criticism

Macau’s Finance and Economy Secretary Lei Wai Nong reacted to great criticism concerning that the brand-new economic stimulus program excludes Macau casino operators. Lei Wai Nong said that the Macau government is extremely appreciative of casino operators in the area for not laying off their employees and for sustaining their lives.

Nonetheless, he also added that Macau casino operators had accumulated great profits over the years and in the past months which gives them the ability to sustain employment and maintain operational once the coronavirus crisis passes. He concluded this official press release by saying that Macau’s government is and will be tilted in favor of small and medium-sized businesses, Macau residents and employees and he hopes that Macau casino operators understand their standing.

As reported by several news outlets, the value of shares in several of the most prominent Nevada-based casino operators dropped significantly following ongoing coronavirus fears. Some of these venues have seen dramatically reduced numbers in tourists and visitors which consequently affected the value of shares in such companies especially after the 5^th of March. According to local news outlets, the appearance of the highly-contagious coronavirus strain in the state could cause further reductions in visitor numbers.

According to one recent report by the Reno Gazette Journal news outlet, The Silver State recorded its very first case of the coronavirus strain on the 5^th of March. This news immediately caused dramatic drops in the individual shares’ prices in local casino operator Las Vegas Sands Corporation which went down to by around 4.1% to hit just $54.88. What is even more, this decline in the value of shares was even more prominent and serious for the Caesars Entertainment Corporation company.

Coronavirus Disease Latest Situation Report

According to the World Health Organization and its latest report on the highly-infectious coronavirus strain, over 105 000 cases of infection are confirmed globally with over 3600 cases being new cases. In China, over 81 000 individuals have been infected while the COVID-19 virus has claimed the lives of over 3100 individuals just in China. According to the latest report by the World Health Organization, eight new countries have reported their first cases of infection in the past twenty-four hours.

Over one hundred countries have confirmed cases while the global risk assessment in very high.  The 2019-2020 coronavirus outbreak is a serious, ongoing global outbreak of COVID-19 or coronavirus disease which is caused by SARS coronavirus 2 or severe acute respiratory syndrome coronavirus 2. The virus which was first identified in the Chinese city of Wuhan in late December of last year has been declared by world health organizations as a Public Health Emergency of International Concern.

Disappointing Revenue Figures for Nevada Casino Operators

As mentioned in the first section, the most recent decline in the value of shares in several of the most prominent Nevada-based casinos has also caused disappointing revenue figures. The decline was very prominent for the Caesars Entertainment Corporation company as its stock value dropped by around 5.69% to hit just $11.27. At the same time, the Boyd Gaming Corporation company suffered a more serious 9.3% drop.

Even more serious decrease in the value of shares was recorded by the Wynn Resorts Limited company whose shares’ value dropped by around 9.5% to reach $95.62. Another Nevada-based casino operator affected is MGM Resorts International which recorded a drop of 11.5% to hit around $20.60.

According to the Reno Gazette Journal news outlet, the Red Rock Resorts Incorporated company that is responsible for the Red Rock Casino Resort and Spa venue suffered the most prominent drop back on the 5^th of March following its shares’ value dropping by around 13.8% to hit only $16.5.

The same news outlet also shared that casino operators in the state expect the casino market to remain rather volatile in the time to come due to the ongoing coronavirus outbreak. Commenting on the issues, UBS Global Wealth Management Chief Investment Officer Mark Haefele said that the unpredictive nature of the growing coronavirus threat both perceived and real is not quantifiable, at least not yet so the global response cannot be judged as insufficient or sufficient.