The coronavirus crisis continues to grow in the UK, with businesses struggling to stay afloat as a result of being forced to close their doors due to the lockdown.
On the Isle of Wight alone, more than 50 people have already tested positive for COVID-19 so far with that number likely to keep growing for many weeks to come.
Is it the end of the road for old school casinos
Although the island does not currently have any land-based casinos, sites in nearby Portsmouth, Southampton and Bournemouth are among those to have been shuttered. Their long-term futures appear to be in severe doubt as a result.
Many casino customers, including those who are living on the Isle of Wight, have already turned to online casinos instead. This is a rare UK industry that is booming during the pandemic.
But will the government save land-based casinos – and would such a move be popular?
The UK government’s current stance on land-based casinos
At the moment, casinos are able to access the Coronavirus Job Retention Scheme, which is the UK government’s method of protecting as much employment as possible during the crisis.
In the scheme, casinos that have been hit hard by the coronavirus pandemic can place staff on what is known as ‘furlough’, with the government covering 80 per cent of their wages.
Gambling businesses are also among those who are set to benefit from 100 per cent business rates relief for the next 12 months, reducing their outgoings by a very significant amount.
Measures to protect casinos have been welcomed by the Betting and Gaming Council (BGC), which represents betting shops and casinos and has claimed up to 64,000 jobs could be at risk.
Chief executive of the BGC Michael Dugher, a former MP, has welcomed the support as a “much-needed shot in the arm” and he also thanked the Treasury for their coronavirus support.
“The government are clearly working night and day to beat the virus and to ensure that jobs and businesses throughout our country are protected,” he said in a recently released statement.
But it is questionable whether the Coronavirus Job Retention Scheme and cut to business rates relief is going to be enough to save casinos as lockdown conditions are likely to be extended.
Casinos can also apply for money through the Coronavirus Business Interruption Loan Scheme, while VAT payments that are due to be paid for the next quarter have been deferred.
Do land-based casinos need more government help?
With customers increasingly heading online to play casino games like blackjack and roulette, it is doubtful whether land-based casinos even have a future once the coronavirus crisis is over.
Indeed, some people in the industry believe there could be widespread casino closures as a result of the pandemic, which would potentially result in thousands of job losses for the sector.
As Angie Harper from Flashcasino.org comments: “One thing is certain – the government won’t be able to save all land casinos, and most of the ones that it manages to save will have serious problems with online competitors long term.”
Competing with online casinos has become increasingly difficult for land-based casinos in the last few years. The growth of this side of the industry helps to explain why there is still no casino open on the Isle of Wight. This is despite the island’s population of more than 140,000 people.
It is nearly a month since all land-based casinos were told to close their doors when the UK introduced the first lockdown conditions in order to try to prevent the spread of COVID-19.
But with the UK’s death toll still growing by hundreds of people every day, the government may be forced into using even more draconian measures to bring the pandemic under control.
That means land-based casinos could be shut for months, rather than weeks, with the companies operating these sites expected to come under increasing financial pressure. While the government’s help so far has been welcomed by industry bodies like the BGC, it may well be the case that even more support for land-based casinos might yet be needed.
How are other countries supporting casinos during the pandemic?
In the United States – home to global gambling capital Las Vegas – it is estimated that casino companies will sustain as much as $21 billion in losses due to the coronavirus crisis.
President Donald Trump has announced measures to support the industry but the American Gaming Association has called for changes to be made to the Paycheck Protection Program’s (PPP) Interim Final Rules that have been announced by the government.
With some 1.8 million Americans employed in the casino industry, government support will be needed to avoid widespread unemployment once the pandemic has started to cease. Las Vegas is currently a ghost town, however, with the city’s economy set for a huge slump in the coming years as a result of this year’s massive drop in the number of tourists who are visiting.
Land-based casinos are in a desperate situation in both the UK and the US, with online casinos likely to become the future of the gambling industry as a result.
