News media reported last month that Ontario’s casinos are pressing to reopen sooner than other such facilities in Canada. Paul Burns, president and CEO of the Canadian Gaming Association (CGA), says that’s not true. The CGA represents 17 casinos operated by companies like Hard Rock and Gateway, and also includes industry manufacturers and suppliers.
“We’re not asking to be any quicker,” he told GGB News. “We’re in Stage 3, according to the government, and taking a regional approach, so different parts will open at different times.”
According to Ontario’s “Casino/Charitable Gaming Operators Health & Safety Guidelines,” the province will “follow rigorous standards for health and safety and have a strong culture of compliance, as required by the provincial regulatory framework set out by the AGCO (Alcohol and Gaming Commission of Ontario). This is how we do business.”
The protocols will require that employees and customers stand “at least two meters (6.5 feet) away from others while in lines, using elevators or moving around the property.
“Layouts of restaurant tables, electronic gaming machines, table games, and other areas will be arranged to encourage appropriate distancing by removing seats or installing physical barriers. In situations where physical distancing is not possible, other mitigating controls (e.g. use of masks, gloves, hand sanitizer and physical barriers etc.) will be employed.”
Burns said, “Each site has to create a site-specific plan and submit it to AGCO and the Ontario Lottery and Gaming Corp. This is a similar process to what’s been followed in Nova Scotia, and operators in British Columbia are working on a similar framework.
Rolling with the Punches
Canadian casinos are now in the 16th week of closures, and the financial hit has been “pretty significant,” said Burns. “It’s putting a lot of stress on employees and the businesses. A lot of capital projects that are almost finished and many that were under way are at risk through this process.”
In Ontario, those projects represent about $1.5 billion in investment over the next two years; many hang in the balance due to the Covid-19 outbreak and the resulting health and economic crises. “It’s not just the shutdown but the modernization of the business” in the aftermath of the virus, said Burns. “In the next few years, there’s not a gaming site that won’t be rebuilt or renovated.”
Casino Woodbine in Toronto, for example, operated by Great Canadian, “is a huge hotel-casino complex that’s under construction. It was scheduled to be open in April.” But that didn’t happen.
He added, “There are casinos under construction in North Bay and several other jurisdictions.” Their future viability in a changed industry and economic climate “are (among) the concerns we have, in addition to the industry being put to the test and supporting the employees.”
A Hand from the Government?
Gaming is counting in part on a federal program called the Canada Emergency Wage Subsidy (CEWS), which provides 75 percent of employee wages for 24 weeks.
The CEWS program has been available to casino operators since April, but there’s a catch: the monies are intended to keep people on the payroll. With casinos closed, and few employees working during the shutdown, “there was limited take-up by operators,” said Burns. “Some of the larger operators in the country had only a few hundred people working out of 8,000 to 9,000. Many had only handfuls of people, so the program provided minimal benefit.
“We hope those programs are still available, because we haven’t been able to take advantage of them, with no revenue and the doors closed.”
The program is scheduled to end August 29, he said, but casinos are hoping for an extension. “Casinos in Canada are just starting to reopen, and we’d like it to be available longer so they can take advantage of the program while they’re working to restore revenues. The program will allow casinos to bring more employees back to work sooner.”
Meanwhile, the Canadian gaming industry has been watching as the United States industry reopens to see what’s working—and what isn’t.
“There have been great efforts to ensure no line-ups” in front of casinos, he said. “Great tools have been deployed so customers will have a great experience, won’t be waiting in the hot sun, and maintain social distancing in a comfortable environment. We’re watching and learning to see what tools are available as everybody puts plans together.”
Noting that some regions haven’t reported Covid-19 cases in weeks, he said, “I’m hopeful that most jurisdictions are open by the end of July. We’re in a position where we can do it safely, and, working with customers, make sure they have a safe and entertaining experience.”
Adults over 65, considered a mainstay of casinos, are also reportedly most vulnerable to contracting Covid-19. Does Burns expects to see seniors return in large numbers, and if so, will their safety be assured?
“I only go by broad results of customers surveys, which show that those customers do want to return, but they also want to know that health and safety measures are in place. We know that a lot of them drive, rather than using public transit. That’s a plus. They’re not unlike employees, who are also anxious to return.
“We have a very comprehensive plan that involves enhanced cleaning, reduced capacity but also staff training, as you see across the industry. Everyone in Ontario will wear masks; patrons are free to wear them if they wish. If they’re required by public health, we can work with that.”
He reiterated that casinos, more than any other industrial sector, are accustomed to strict regulations. “Following policy and procedures is part of the business. We’re uniquely positioned to implement these procedures, and our surveillance gives us a unique tool that many in the hospitality sector don’t have.
“We’ve seen casinos in the U.S. with strong openings and we hope to see the same. It’s a matter of putting the safety measures in place. But it’s encouraging to find that there’s a willingness to come back.”
