Silver Lining

Discovering the strengths and weaknesses of the casino industry during the Covid shutdown.

When the world shut down in 2020, the gaming industry was just one of many to be severely impacted. As an in-person entertainment option, casinos were hit hard and long by the disaster that was the pandemic. Revenue completely disappeared. Plans went up in smoke. And no one knew how long, deep or devastating the shutdown would be.

Even when casinos began to slowly reopen, many people hesitated to return, and rightfully so. The amount of information and misinformation was extraordinarily confusing. Some countries shut down completely and were hard-hit. Others stayed open and didn’t suffer any worse. U.S. casinos started to come back in three or four months, while Canadian and Australian casinos were shuttered for more than 18 months. It’s understandable that people were confused and remain skeptical about any future predictions about the Covid bug.

But a few things we learned during the pandemic have already been beneficial to gaming.

Let’s start with online gaming and sports betting. Jurisdictions where remote betting was legal did not suffer as badly as those limited to bricks-and-mortar casinos. Tax money continued to flow, albeit at a lower level, and didn’t completely disappear in those states. States with no legalized online gaming or sports betting will now seriously consider these options, knowing if another pandemic occurs, the revenue stream will not dry up completely.

Communications with guests once was hit or miss for most gaming companies. Yes, they still send out direct mail. Yes, there’s an email list that goes to their massive databases. But casino executives have learned that players need a more personal experience—more targeted and familiar. They’re starting to consider programs that utilize artificial intelligence, which mines individual customer data to learn players’ needs and desires—even if the players themselves don’t realize it yet.

Casino design, as you’ll see from the feature story in this magazine, has changed dramatically. Where once slots were jammed together and players seemingly sat on top of each other, there are now smaller carousels of three or four machines, with seating at least 90 degrees away from the next gaming position. The machines are larger and more spectacular, with screens that seem to touch the ceilings.

Spots at blackjack and baccarat tables have largely been reduced, so a seven-spot table now has a maximum of five. The Plexiglas that went up as casinos reopened hasn’t completely disappeared, and still gives players a sense of security.

Are buffets a thing of the past? Not necessarily. But guests handling service spoons or hovering over a salad bar may be gone. Most casinos are now opting for food courts, with the same variety but at an increased cost. Are casino executives sorry to see the buffets disappear? Most believe these loss leaders will be changed forever.

You may think it’s an anomaly that the last two covers of Casino Style featured brand-new Las Vegas resorts where the pools are front and center and spectacular. But you may be missing the boat. Pools and spas are growing in importance, and need to be a part of any new project, no matter where it’s located.

And of course, the trend toward cashless transactions accelerated during the pandemic. Who wants to handle money that just left someone else’s hands, and changed hands many times before that? Casino execs are encouraging the move to cashless. A recent study showed that it costs a casino $15 to process every $100 of cash. But cashless transactions reduce that cost to less than a dollar. How soon will players adopt cashless? Let’s ask the millennials, who rarely carry cash and use their phones to make any and all transactions.

So yes, the pandemic was painful, to be sure. But in the very near future, maybe that pain will lead to pleasure, as the casino experience becomes more efficient and transparent.

Articles by Author: Roger Gros

Roger Gros is publisher of Global Gaming Business, the industry’s leading gaming trade publication, and all its related publications. Prior to joining Global Gaming Business, Gros was president of Inlet Communications, an independent consulting firm. He was vice president of Casino Journal Publishing Group from 1984-2000, and held virtually every editorial title during his tenure. Gros was editor of Casino Journal, the National Gaming Summary and the Atlantic City Insider, and was the founding editor of Casino Player magazine. He was a co-founder of the American Gaming Summit and the Southern Gaming Summit conferences and trade shows.
Roger Gros is the author of the best-selling book, How to Win at Casino Gambling (Carlton Books, 1995), now in its fourth edition. Gros was named “Businessman of the Year” for 1998 by the Greater Atlantic City Chamber of Commerce and received the Lifetime Achievement Award from the American Gaming Association in 2012 as part of the annual AGA Communications Awards.