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Hope for US Gaming Sector as States Relax Casino Occupancy Limits
By Jeff Osienya Mar 07, 2021 IndustryUSA’s casino industry sees a glimmer of light at the end of the tunnel as occupancy rates are gradually eased thanks to the decline in COVID-19 infection rates. Mississippi leads the land-based gaming world with a 75% casino capacity restriction.The rate of Coronavirus infections across the USA is generally reducing. As a result, state governments are moving to loosen up some of the tough restrictions they had imposed for the better part of last year when infection rates were at their peak. Better yet, nearly 10% of the US population is already fully vaccinated against the novel virus, meaning that normalcy will take shape sooner rather than later, as the rollout of vaccines continues.
The relaxation of COVID-19 limits is bringing hope to the casino sector and the entertainment and hospitality industries at large as the so-called non-essential businesses are being allowed to take in more patrons. Last year, due to the forced lockdowns and restrictions, the US commercial gaming revenue slipped by 31% after a $30 million haul, recording the lowest ever revenue in nearly a decade.
To start bouncing back from revenue shortfall, here’s a highlight of how some of the largest gaming US states are slowly but surely opening up the gaming market while still being wary of the lingering Coronavirus;
Nevada: 35% Occupancy Limit
Nevada, the gambling mecca of the United States eased its occupancy limits for casinos mid-last-month, bumping up the occupancy rate to 35% from the 25% limit that had been effected in November. Should things proceed as planned, Gov. Steve Sisolak of Nevada is expected to further relax the occupancy restriction to 50% for casino establishments next week, on the 15th of March.
As an economy that is purely driven by entertainment and hospitality, Nevada is a shining example of how the virus should be handled. Governor Sisolak doesn’t shy away from making tough decisions in case there’s a risk for his state residents. He had introduced a 50% occupancy limit after casinos in the state first reopened their doors in May but a surge in infection rates six months later prompted him to cut back the occupancy rate by half.
New Jersey: 35% Occupancy Limit
The Garden state, which is the second-largest US gambling market and the champion of the sports betting vertical after racking up a $6 billion win for the 2020 calendar year also currently has a 35% occupancy rate for casinos. Governor Phil Murphy of New Jersey increased the casino occupancy restriction from 20% to 35% and lifted the 10:00 pm curfew at the beginning of last month.
Gov. Murphy’s ease of restrictions came at an opportune time as the changes were announced right before the Super Bowl LV weekend. Atlantic City casinos and sportsbooks were particularly relieved at that time as the relaxed restrictions at least gave them more wiggle room to profit from the big game on that weekend. According to the governor, the ease of restrictions was prompted by the fact that medical experts were not expecting a rise in infection rates as the state’s healthcare system was handling the situation well enough.
Michigan: 30% Occupancy Limit
The wolverine state has also experienced a decline in infection rates and as such, Governor Gretchen Whitmer announced that he would be allowing 5% more occupants in casinos, increasing the limit from 25% to 30%. The revised order took effect on Friday 5th March and will remain in force until 19th April as state officials and health experts continue monitoring the situation.
Based on recent reports, hospitals in Michigan are using fewer beds from novel Coronavirus patients and the rate of the infection has reduced to only 3.7%. Additionally, testing data in the state indicates that case rates have plateaued with less than 93 positive cases for every million individuals tested for the virus.
Mississippi: 75% Occupancy Limit
For the Magnolia state, the occupancy rate in casinos was increased from 50% to 75% of the maximum capacity of the gaming venue from Thursday 4th March, at 5:00 pm. A letter was sent by the Mississippi Gaming Commission to all gaming establishments with guidelines of how they should conduct business.
The most interesting bit for Mississippi except for the much more relaxed 75% occupancy limit for casinos is that casinos are the only businesses where face mask and social distancing rules were maintained. Restrictions were lifted for all other businesses across the state by Gov. Tate Reeves, but the state’s gaming regulator decided to modify the rules for casinos perhaps because of the higher susceptibility to infections in the venues.
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