US casinos set for resurgence

Despite a 78.8 per cent year-over-year contraction caused by the pandemic, the US gaming industry considers itself well set for recovery based on a record start for 2020.

The American Gaming Association’s new Commercial Gaming Revenue Tracker showed a disastrous second quarter for the industry, following an initial strong growth before the shutdown.

The quarter reveals total GGR of $2.3bn, down 78.8 per cent, with slots at $1.3bn, down 81.9 per cent, and table games down 86 per cent at $286.9m. Sports betting was 46.3 per cent down at $64.2m. The only positive in the quarter was in igaming, where revenues rose 253.8 per cent to $402.7m.

CEO Bill Miller commented: “Covid-19 has undoubtedly posed the most difficult economic challenge the gaming industry has ever faced. Yet gaming’s record popularity prior to the pandemic, as well as our resilience in the midst of such adversity, is evidence of the industry’s foundation for continued success as we emerge from the pandemic.”

Casinos showed strong demand when open for business. All 989 US brick-and-mortar venues closed in March, but up to that point combined commercial revenue for January and February was up 10.4 per cent on last year. Since the restart, several states have reported continued year-on-year improvement, despite limited capacity and reduced game availability.

Nearly 300 casinos reopened in June and as of early August, 85 per cent of locations had reopened.