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After the COVID 19 lockdown, a lot of focus has been drawn to the casino business. However, the world seems to be forgetting about the casino business partners who are also ailing in this period.
Now, there are a lot of businesses that have been lucratively benefitting from the casino business. For example, for a casino to function, it needs food, toiletries, sanitation, and uniforms for their workers, and so many other supplies.
But most importantly, there is a need for the casino games and machinery. After all, these are what will determine whether or not a casino functions properly or not.
Therefore, now that there has been a closure of casinos, most of the casino gaming providers are facing major losses. Among these are PlayAgs and TransAct.
Casino business Partners Might Even Face Closure
Some big casino business owners are still afloat but hoping that the phase comes to an end soon. But, the smaller businesses can barely hold on.
Some gaming providers are now relying on online real money casinos for their revenue. However, those who were solely depending on land casinos are feeling the pinch.
David Lopez, CEO of PlayAgs, says that the smaller gaming provider will have to either close up, or partner up with the big business.
For example, Flatter recently joined forces with Stars. This is despite the fact that the sports betting industry is on a downward spiral right now. What is important is that they survive this lockdown period.
Very small gaming suppliers, I think, will begin to roll up and be part of the larger gaming suppliers. I wouldn’t be surprised to see a little bit of consolidation here and there”
David Lopez
CEO of PlayAgs
PlayAgs Reporting Losses
The gaming equipment and slot machines suppliers are reporting a 26% loss in its 2020 first quarter. Their revenue so for is USS$53, 4 million.
Currently, in a bid to survive, the company has laid off 10% of its staff. Also, their trying to cut down the expenses costs by 80% so that they can survive for a longer period.
According to Lopez, the shutdown was unexpected, and most casinos were not really prepared. Therefore, it can take a while for businesses to actually get back to normal.
It shut down abruptly, and over the course of about a week. The ramp-up is going to take a number of weeks and months. Even when casinos are open 1000% it doesn’t mean 100% pre-COVID revenues will be in place, ”
David Lopez
CEO of PlayAgs
Transact Technologies Recording Almost a Million in Losses
The casino and food safety and equipment provider is recording US$ 992 000 in losses for the 1st quarter of 2020. This is unlike the US$ 746 000 it made in profits during the same quarter in the previous year.
Bart Shulman, the CEO and chairman of the casino business, said that this is quite expected. He went on to state how the losses were inevitable considering the impact that the COVID 19 outbreak has had on the world at large.
However, the company’s food sales technology is doing pretty well. The sales are recording an 11.3% incline to US$1.4 million. But, average sales for casino business are now down by 11.4% to US10.2 million from 11.6 million.
Conclusion
So far, Macau casinos are the only land casinos open. But, the casino business in the COVID 19 hotspot is still struggling since there is still a lockdown on tourism. Therefore, the rest of the land casino business owners are keeping their fingers crossed.
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