• Thu. Feb 25th, 2021

COVID Causes US Industrial Gaming Revenues to Fall 31 %, Worst Yr Since 2003

BySpeed Casino

Feb 19, 2021

Posted on: February 17, 2021, 11:56h. 
Final up to date on: February 18, 2021, 02:26h.

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Because of COVID-19 and the shutdowns and restrictions it created in 2020, the US business gaming trade noticed its worst 12 months in 17 years. That’s in keeping with knowledge revealed by the American Gaming Affiliation on Wednesday.

American Gaming Affiliation President and CEO Invoice Miller offers the welcome tackle to the 2020 digital World Gaming Expo. On Wednesday, the AGA introduced business gaming income fell greater than 31 p.c in 2020 as a result of COVID-19 pandemic. (Picture: AGA/YouTube)

Commercially licensed gaming, which incorporates state-sanctioned casinos, retail and on-line sports activities betting, and iGaming operations, reported gross revenues of $30 billion. That’s down roughly $13.6 billion p.c from 2019, a decline of greater than 31 p.c.

(T)hese numbers present the financial realities of COVID-19 and underscore the significance of focused federal aid and ramped-up vaccine distribution to speed up gaming’s restoration in 2021,” AGA President and CEO Invoice Miller stated in an announcement.

The $30 billion in revenues – technically $29.98 billion earlier than rounding – was the bottom quantity generated since 2003, when business operators received $28.7 billion. Again then, although, solely 11 states had authorized gaming, in keeping with the AGA. Some kind of business gaming was out there in 29 states and the District of Columbia final 12 months.
Revenues declined for the primary time since 2014.
Casinos Misplaced a Quarter of Operational Days in 2020
The pandemic compelled all brick-and-mortar on line casino exercise throughout the US to stop by late March. Whereas most resumed operations by Could or June, they’ve performed so with far fewer desk seats and slot machines in an try to abide by social distancing tips of their jurisdiction.
So, it shouldn’t be surprising that the proportion of on line casino days misplaced almost strains up with the income drop.
Within the 25 states with business casinos, these venues misplaced greater than 45,600 working days mixed. That’s a 26.7 p.c lack of the out there days.
New Mexico noticed a lack of almost 80 p.c of its business operation days. After New Mexico have been New York (48.4 p.c of days misplaced), Michigan (47.6 p.c), and Illinois (40.2 p.c). New York and shut down their business casinos for six months in 2020. Michigan and Illinois every had multiple interval the place their brick-and-mortar venues closed throughout the 12 months.
In Nevada, business casinos misplaced a complete of 21,538 days, or 26.8 p.c of the whole doable days out there. Most main on line casino operators reopened in June however these with a number of properties on the Strip reopened these properties in phases as demand picked up.
Sports activities Betting, iGaming See Sharp Will increase
Not all information was dangerous for the business gaming trade in 2020. Whereas COVID crippled the retail aspect, it additionally offered an enormous alternative for iGaming.
Income for on-line casinos and card video games shot up considerably final 12 months. The almost $1.6 billion in gross gaming income represented virtually a 200 p.c improve from 2019.

For perspective, sports activities betting generated greater than $1.5 billion, a virtually 70 p.c bounce from the 12 months prior. Whereas these income numbers are virtually an identical, it took sports activities betting licensees in 18 states and DC to generate that income. Alternatively, iGaming derived its income from 4 states (Delaware, New Jersey, Pennsylvania, and West Virginia).

Clearly, the casinos’ closures had some influence on the dramatic improve. Nonetheless, the outcomes have been nonetheless vital sufficient for some states, reminiscent of Indiana, to contemplate legalizing iGaming this 12 months.

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