WEEKLY FEATURE: Covid Variant Hammers Casinos

With the global surge in Covid-19 infections, with the latest Omicron variant, casinos in a number of jurisdictions have taken steps to curb the spread and protect patrons and staff. Precautions include the return of masking, reduced capacities and in some cases, temporary closures.

WEEKLY FEATURE: Covid Variant Hammers Casinos

On January 3, casinos and other gaming halls in the Philippines were ordered to halt operations due to a rise in Covid-19 infections, particularly the highly contagious Omicron variant.

Under the newly reinstated Alert Level 3, the government forbade a long list of activities considered high-risk for transmission, including “casinos, horse racing, cockfighting and operation of cockpits, lottery and betting shops, and other gaming establishments.” As originally announced, those shutdowns were to be in place until January 15 at the earliest.

But as quickly as the news was reported, the order was modified. Casinos in Manila’s Entertainment City were allowed to remain open at 75 percent capacity, but only to fully vaccinated individuals, with indoor dining, hotel gyms, spas, MICE venues and hair salons all operating at 40 percent capacity.

On order of the government, operators must “diligently check the vaccination status of their respective patrons/guests to ensure that only the vaccinated are allowed access to the property.”

According to Inside Asian Gaming, the country’s Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) battened down for a Covid spike in the wake of holiday gatherings and reduced compliance with public health measures.

The ongoing Covid crisis continues to affect the gaming industry in markets around the world.

Las Vegas

Prior to New Year’s celebrations in Las Vegas, the Nevada Gaming Control Board promised to “intensify its enforcement of Emergency Directive 045 to ensure the safety of Nevada’s residents and visitors.”

The directive, handed down in May by Governor Steve Sisolak, “requires each person, including fully vaccinated individuals, to wear a mask in public indoor settings in counties with substantial or high transmission of Covid-19.” Clark County is among those counties with high transmission of the virus, according to the Las Vegas Review-Journal.

Control Board agents “routinely make unannounced visits to casino licensees to check for potential regulatory violations,” the newspaper noted; in June 2021, it fined the Mohegan Sun Casino Las Vegas $60,000 for failing to enforce mask mandates at its March grand opening.

According to CDC Gaming Reports, Covid is also taking a piece out of the Las Vegas convention business. Though the Consumer Electronics Show (CES) returned to the Las Vegas Convention Center this month, having canceled the show in 2021, more than 40 exhibitors, including Microsoft, Google and Amazon canceled their plans to attend in person. Consumer Technology Association officials projected that attendance at the show would be halved because of the virus. Last year’s Global Gaming Expo, which required masks and proof of vaccine for all participants on the show floor, attracted more than 13,000 attendees, less than half of the 27,000 who attended the 2019 event.

Also in Nevada, the Gaming Control Board said it would strictly enforce the mask policy put into place by Governor Steve Sisolak in May 2021. Casinos have been lax in enforcing the mandate and the only enforcement action came when the board fined the Mohegan Sun casino at Virgin Hotel $60,000 for ignoring the mandate on the week it opened in June. But with the jump in the omicron variant, the board issued a statement prior to New Year’s Eve celebrations that attracted more than 300,000 people to Las Vegas.

“With another sharp increase in cases of COVID-19 occurring in Nevada, the Nevada Gaming Control Board (Board) expects each of its licensees to ensure compliance with Governor Sisolak’s Emergency Directive 045, which adopts all recommendations promulgated by the Centers for Disease Control and Prevention (CDC) related to masks.

“As Nevada prepares for a substantial rise in visitation for the New Year’s holiday, the board will intensify its enforcement of Emergency Directive 045 at all licensed locations subject to the mask requirement to ensure the safety of Nevada’s residents and visitors.”

“The board reminds its licensees, gaming employees, and the general public that a licensee in violation of any federal, state or local law or regulation is a violation of Nevada Gaming Commission Regulation 5.011, and that the Board may seek disciplinary action by the Nevada Gaming Commission for any such violation,” the statement concluded.

Macau and Asia

In Macau, which adheres to a strict zero-tolerance policy around Covid-19, several cases were recently identified, and casinos are operating at reduced hours with reduced options. The website of City of Dreams, a Melco Entertainment property, said Melco will “gradually reopen a number of its facilities from 20 February onwards.”

It stated that COD is “working closely with the Macau SAR government and continue to carry out stringent operational protocols to safeguard the wellbeing of all visitors and colleagues across our properties to help curb the spread of the coronavirus.” The notification included a “friendly reminder” to guests to “cooperate with the temperature screening and show a negative Covid-19 nucleic acid test result” on arrival.

Likewise, the website of Grand Lisboa Palace, an SJM Holdings property, advised guests and employees that it had “adjusted” the operating hours of certain facilities and restaurants due to the virus.

“The health and safety of our guests and employees remain our top priority as always,” the website stated. “The hotel has always been in full compliance with Macau SAR government regulations in preventive measures against the spread of the coronavirus.”

Sands China properties including the Venetian Macao, Sands Macao, Parisian Macao and others require thermal temperature screening stations at entryways, and are observing social distancing.

In response to the pandemic, Macau health authorities announced that passenger flights arriving from outside Mainland China will be prohibited between January 9 and January 23. And Hong Kong announced that, starting January 8, passenger flights from eight countries—Australia, Canada, France, India, Pakistan, the Philippines, the United Kingdom and the United States—will be banned for 14 days.

In South Korea, Grand Korea Leisure paused gaming at its Seven Luck Casino in Seoul until January 7 after eight employees tested positive for the virus. An online corporate announcement called it a “pre-emptive measure” to prevent the “spread of infection” relating to Covid-19, and for the “safety of customers and employees.”

Fitch Ratings, in a report on tourism in Asia Pacific markets, said it “expects a slow recovery in international tourism across APAC during 2022, despite higher vaccination coverage and stepped up reopening efforts.

“The evolving global epidemiological situation poses a high degree of uncertainty and a tourism recovery in destinations with lower vaccination rates, such as the Philippines and Indonesia, will remain vulnerable to setbacks.”

Canada

In Quebec, Canada, casinos and other entertainment venues were temporarily closed on December 27 due to the highly contagious omicron variant, which makes up 80 percent of all cases in the province. The shutdowns were at the order of Quebec Health and Social Services Minister Christian Dube after the province reported 7,874 new Covid cases, with 614 hospitalizations.

Ontario’s provincial government ordered casinos to cut capacity to 50 percent with patrons not allowed to eat or drink on the casino floor. Restaurants on the property can operate, also at 50 percent capacity.

Ontario Premier Doug Ford announced January 3 that the province was returning to a modified Step 2 of its reopening plan, which would compel casinos to shut down for three weeks.

Casinos in the province operated by Gateway Casinos and Entertainment sent a memo to employees saying, “In response to the Ontario provincial government announcing a modified Step 2, all of our Ontario operations will be temporarily suspended effective Wednesday, January 5 at 12:01 a.m.”

The memo continued, “The health and safety of all employees, customers and the community remains the highest priority at Gateway and we will continue to work with local and provincial governments; public health authorities and regulators to collaboratively prevent the spread of Covid-19.”

Other Ontario operators include Great Canadian Gaming Corp., One Toronto Gaming, Caesars Entertainment, Mohegan Gaming and Entertainment as well as Hard Rock International.

Alberta Premier Jason Kenney ordered casinos to operate at 50 percent capacity with limits on food and drink availability. Patrons must show proof of vaccination and wear masks to be allowed to enter.

The government of British Columbia ordered restrictions but did not close casinos, which were allowed to operate at 50 percent capacity. Patrons are also required to be double-vaccinated and masked. The same holds true in Nova Scotia and Manitoba.

Quebec’s Dube may have summed up the continuing parry-and-thrust of gaming economies with Covid when he declared, “Although our high vaccination rate is an asset, Quebec will not escape what is happening elsewhere with the progression of the omicron variant. With the increase of cases and hospitalizations, we must put in place new measures. It is war right now against the virus.”

Philadelphia

The city of Philadelphia last week issued an order that requires the city’s two casino properties—Rush Street Gaming’s Rivers Casino Philadelphia and Cordish Companies’ Live! Casino & Hotel Philadelphia—to restrict entry to those showing proof of Covid-19 vaccination.

The vax requirement is the latest example of the city of Philadelphia’s issuance of Covid-19 safety measures that exceed state or federal requirements. The city’s casinos remain under a city smoking ban, for instance, where competitors across the state have resumed allowing smoking. Shutdown orders and mask requirements also have exceeded state guidelines.

“To counter rising Covid-19 case rates and hospitalizations in our area, on January 3, 2022, a vaccine mandate will go into effect for indoor establishments serving food or drink,” said an order issued December 17 by the Philadelphia Board of Health. “Any establishment in Philadelphia that sells food or drink for consumption on site may admit only those people who have completed their vaccine series against Covid-19.”