CNBC Television These are the precautions one casino has taken for its reopening
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CNBC’s Contessa Brewer reports on the increased precautions casinos are taking as they reopen.
For weeks, the burning question facing casino operators nationwide has been: “If you open, will they come?”
If Deadwood, South Dakotavis any indication, the answer is yes.
This weekend 11 casinos in the historic destination town, which was the last in the nation to close its commercial gaming establishments, became the first to reopen.
“We were about 15% or 20% higher than a typical weekend business, which is significant,” said Caleb Arceneaux, CEO of Liv Hospitality, part of a family business that owns and operates Tin Lizzie Gaming Resort and Cadillac Jack’s Gaming Resort and four hotels in Deadwood.
“Cabin fever’s real, and I think people wanted to get out and experience, you know, gaming again,” Arceneaux said, adding that weekend occupancy was running 85% to 90%, with many driving in from surrounding states.
That’s important as casino operators nationwide balance the cost of reopening with the ramp, or lack thereof, in business.
Penn National Gaming owns 41 facilities in 19 states. CEO Jay Snowden said he’s watching demand closely at tribal casinos that opened first.
“Between 25% and 30% of prior year revenue levels will get us to break even,” Snowden said.
In Montana, Golden Entertainment operates 3,000 slot machines, which were turned on for play May 4. The company said it saw pent-up demand and customer volumes comparable to preclosure levels as patrons returned to their local taverns.
In Nevada, restaurants were allowed to reopen starting Saturday with capacity limits set at 50%, but casinos are still closed.
Betting and gaming company William Hill US got special permission from the Nevada Gaming Control Board to operate a drive-thru at several locations in Las Vegas so customers could set up mobile sports betting accounts or deposit money into an existing account.
“It was very well received,” Joe Asher, CEO of William Hill US, said. “Customers were really patient and waiting in line in their cars.”
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