Coronavirus Could Lead To $21 Billion In Economic Losses to The Casino Industry

Coronavirus Could Lead To $21 Billion In Economic Losses to The Casino Industry

On Wednesday, the American Gaming Association (AGA) found out that prolonged closure of casinos in the country would lead to billions of dollars in losses. It said that if casinos remain shuttered for the next eight weeks, then American direct consumer spending could take a $21.3 billion hit.

US commercial casinos closed

As of Wednesday afternoon, 37% of tribal casinos and 94% of commercial casinos in the US were closed because of the coronavirus pandemic. The AGA said that over 530,000 employees, who constitute about 96% of the total casino workforce in the country are currently out of work.

Coronavirus Could Lead To $21 Billion In Economic Losses to The Casino Industry

The group noted that it is working with the Congress and the White House on relief packaged for the industry and its employees. It is also providing ideas to the lawmakers on how to provide the necessary liquidity to employees.

Casey Clark, the senior vice president of strategic communications at the AGA said,

“The American Gaming Association, in partnership with our colleagues across the hospitality sector, is engaged with Congressional and administration leadership to shape stimulus and aid packages that will support employees, their families, and our communities through this unprecedented crisis.”

The wage losses will be huge

According to the AGA, the wage loss for owing to casino closures could amount to $59 billion annually. These establishments also generate $34.4 billion in annual total tax revenue for the government which could be at risk. The association said that at least half of the jobs in the gaming industry are at non-gaming businesses like local shops and restaurants.

The National Retail Federation asked the government for a direct loan program earlier this week while the National Restaurant Association asked for financial relief, tax measures and loans to help them handle the crisis better. The airline industry is also suffering extensively because of the pandemic.

Airlines for America recently requested the government for $50 billion in the form of tax relief, loans, and grants to help them combat the coronavirus downturn. The tourism industry is also facing problems because of the shutdown. The American Hotel and Lodging Association and the US Travel Association has asked the government for a $150 billion relief package.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.