Las Vegas going out of business?
The lockdown and ensuing restrictions were tough to regular people and business owners alike. Average Joes found themselves relying on savings and beating their heads against the walls as mask mandates, business closures, and more forced many into unemployment.
Some ventures, like taxis and restaurants, were more affected than others. However, the casino industry was one of the hardest hit. Many casinos are on the brink of collapse and the same goes for local gaming parlors that are reeling after these brutal months. Now people are allowed to enter the premises and play their favorite games under certain conditions, but things could take a turn for the worse in the months to come. The prospect of another lockdown is frightening and many are wondering if the land-based casinos can survive another shock.
Land-based casinos are cash-strapped
When it comes to land-based casinos, the most important thing is the ability to withstand the financial pressure. The biggest operators have some money saved, so they can turn to those resources when they need to pay for ongoing expenses. Smaller casinos like playuk.com and those that were already struggling before the crisis are on the brink of bankruptcy and they can’t survive another shot. As the operating costs are mounting, some casinos only have money for a few more months and others are already borrowing funds.
Even the best case scenario doesn’t look too promising, with the biggest operators having enough resources to cope with another month of restrictions. If another lockdown would be instituted in the final months of 2020, the impact will be crushing on many casinos from all over the world. Meanwhile, the flux of cash is slow and unreliable, because people are reluctant to get together in large crowds. Even though the casinos have created the necessary framework to keep them safe, fear is a powerful factor.
The uncertainty of political decisions
Second only to finances, politics are of critical importance for gambling operators, especially those who run land-based casinos. There’s a lot of uncertainty surrounding these businesses, as they are always in danger of being shut down if the crisis starts all over again. There is tremendous pressure from all sides and even though the lobby is powerful, especially in the US, so are the forces running contrary. Many lawmakers are afraid of keeping casinos open at all costs, especially during an election year.
When things take a turn for the worse, politicians are quick to follow the general sentiment and act based on the desire to please the crowds. There are so many other industries that the public wants to keep open before casinos, that gambling operators don’t have many friends. Past events suggest the fact that if the virus makes a resurgence casinos will be promptly shut down and for longer periods of time. The problem with gambling operators is that once they are forced to close their doors, they are likely to stay closed.
The future doesn’t look too bright for land-based casinos and the specter of bankruptcy is looming large. Some will survive, but many will crumble and even those who weather the storm will take a long time to return to profitability.
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