Mississippi Governor Tate Reeves recently said he will allow some businesses to open with certain restrictions—but not the state’s casinos, which closed March 16 in response to the Covid-19 pandemic. “We don’t think that the gaming market is ready to reopen yet,” he said in an interview on MSNBC. Reeves explained on the negative side, casinos attract large numbers of people; on the positive side, their large size allows for social distancing. He said casinos will be able to open when both the Mississippi Gaming Commission and the state health department give the go-ahead.
Mississippi Gaming Commission Executive Director Allen Godfrey noted, “Opening a casino is something we’ve done on a regular basis. Reopening a casino is not the issue in South Mississippi as it is in a lot of places.” Godfrey said as soon as Reeves eases some regulations and gives the gaming commission some direction, “we will take it from there.” For example, casinos could reopen with thermal temperature scans of employees and staff, wearing of masks, placing slot machines for social distancing and closing or reconfiguring buffets.
South Mississippi’s 12 casinos were closed for several months following Hurricane Katrina; several also closed in the past for hurricanes on the Coast and flooding on the Mississippi River.
In Biloxi, Palace Casino General Manager Keith Crosby said Coastal casino operators are eager to reopen, but “the last thing we want to do is to open up and have something happen.” Crosby said Palace Casino Hotel and several others are taking reservations for early May, but staff are calling week by week to cancel those reservations.
He added guests who have to cancel casino and golf packages at the Preserve are rescheduling for the fall. “Our expectations swing from extreme one side to extreme the other side. Reality probably will land in the middle with some customers eager to return and others not ready to venture out,” Crosby stated.
Bill Hornbuckle, chief executive officer at MGM Resorts International, parent company of Beau Rivage Resort & Casino in Biloxi, said, “Everything–from how often we clean to how we greet our guests–could and will change. Our casino floors will look different and our restaurants ultimately will be impacted as well.”
Spectrum Gaming Capital Chief Executive Officer Robert Heller said he believes the recovery from Covid-19 will go slower than post-Katrina, partly because customers will be afraid to return. Four months after Katrina, some Coast casinos reopened; however, it took one year for Beau Rivage, the largest casino in Mississippi, to reopen and for revenue to return to near pre-Katrina levels.
Heller noted following the 9/11 attacks, Atlantic City rebounded within three months, despite its proximity to New York City. However, Las Vegas did not recover for years, due to the disruption of business and customers’ fear of air travel, Heller said. Fear of flying also impacted the Las Vegas Strip during the national recession that started in 2007. “The lack of visitors was painful,” he said. Heller added, “Regional markets are going to perform better and gamblers will gamble. When people come back to life they want to go have fun.”
Geoff Atkinson, senior data analyst at Management, said while many Coast casinos were closed in 2005 and part of 2006, inland casinos experienced a surge in business. A similar situation could occur now if one state reopens casinos while they remain closed in a neighboring state. He pointed out that happened in Florida after Hurricane Irma; one casino reopened within a few days, while neighboring casino didn’t reopen for eight months. “It’s a big advantage if your casino is open and your competitor’s casino is not,” Atkinson said.
Atkinson said once the casinos reopen, restoring confidence and getting people to return will be the key issues—not necessarily how to position slot machines.
