Prior to the COVID-19 outbreak causing all casinos in United States to close at some point in March 2020, our outlook for gaming revenue growth in 2020 was forecasted to be in the +2% to +3% range as compared to 2019. The societal impact from the COVID-19 virus is severe. The economic effect of the COVID-19 virus has already caused a very abrupt and significant key points such as:
- As of April, nearly 95% of our population in at least 41 states and Puerto Rico were being urged to stay home. This has relaxed some in some states, but there is no guarantee the reordering of stay at home cannot return.
- The equity and capital markets declined steeply and while recovered have further damaged our patron’s financial security.
- The rate of reversal of the societal and economic factors will take much longer to overcome than they were incurred.
- The damage to the lifeblood of casino gaming, personal levels discretionary income, as willingness to spend same will take time to recoup.
- However, and probably more important are the yet to be seen implications from a personal safety perspective that many of our patrons will be seeking safety over fun for what also may be an extended length of time.