Casino Shutdown Could Mean a $1.1 Billion Loss To New Jersey

Casino Shutdown Could Mean a $1.1 Billion Loss To New Jersey

Financial losses for casino operators are building up as the COVID-19 outbreak and subsequent lockdown is hurting their business. However, states will have to bear these losses as their tax revenue is curtailed.

AGA comments on New Jersey loss

According to the American Gaming Association (AGA), a two-month-long shutdown of casinos in the state of New Jersey could trample its economic activity. The state may lose as much as $1.1 billion during the lockdown which will have a deep and lasting impact on communities and its employees. The casinos in Atlantic City were shut down last week after Governor Phil Murphy called for a shutdown.

Casino Shutdown Could Mean a $1.1 Billion Loss To New Jersey

The authorities are promoting social distancing for all and self-isolation for people with symptoms to ensure that the virus doesn’t spread. The state’s casinos will remain closed until the state authorities consider it safe for use. Only online gambling will continue. However, sports betting is also getting hurt because of the cancellation of most major sporting events.

The economic impact of the shutdown

The AGA suggests that around 32,987 employees of the New Jersey casino industry will be impacted directly because of the closures. Bill Miller, the president and CEO of AGA, said that gaming is the economic engine of this region and it employs millions of locals while generating investments as well. It also contributes significantly to the state’s tax revenue and supports small businesses as well.

“The impact on our employees, their families and communities is staggering, and the implications extend far beyond the casino floor,” Miller highlighted.

To tackle problems to their employees, Atlantic City casinos have committed to providing temporary compensation solutions to their employees and have also extended the employee health benefits.

The COVID-19 outbreak has already shuttered 94% of the country’s casinos, according to the AGA’s report. The economic losses because of the shutdown could be to the tune of $21.3 billion if the closure lasts for 2 months. This means that thousands of casino workers are facing the risk of unemployment across the country. The AGA wants a financial stimulus package from the lawmakers so that they can protect their businesses and support their employees.

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.