MGM Resorts also wants to reopen the last closed casino
MGM Resorts also wants to reopen the last closed casino
MGM Resorts has announced that it will also reopen the last of the closed casinos in Las Vegas. The Park MGM Casino will welcome visitors again from mid / late October. This is important news for the many casino fans who are now back in Las Vegas. But the news is also good for the gaming company MGM Resorts, which has suffered some major setbacks in recent months.
All MGM Resorts casinos open soon
For the many fans of Las Vegas, there is more good news. The renowned gaming group MGM Resorts has announced the reopening of the Park MGM Casino. The casino should be able to receive visitors again in the second half of October. This is an important milestone for MGM Resorts after all casinos in Las Vegas had to close in the past few months. All other MGM Resorts casinos are already receiving visitors again. The two flagship casinos, the MGM Grand and the Bellagio, are particularly important. But the other MGM Resorts casinos are also an integral part of the Las Vegas Strip. For MGM Resorts it is important to get back to normal, also to avoid further layoffs. The American company recently announced that 18,000 of its 68,000 employees had to be laid off. It is completely unclear whether and when MGM Resorts can increase its workforce again. There are currently many indications that the crisis in the USA will last a few more months. It cannot be ruled out that it will take until 2023 for the casinos in Las Vegas to be back to their old level. Perhaps it will even take longer for the situation for the casinos to return to normal. In addition to the hygiene regulations, the reduced travel activity and various other restrictions, it should also play a role in the long term that many people have got or will get into economic difficulties due to the current crisis. That is why one or the other gambling fan will not have as much money as it did before the crisis. But at least at the moment it seems to be possible again to operate the casinos in Las Vegas in such a way that at least the costs are covered halfway.
Park MGM Casino is not one of the most famous casinos in Las Vegas. But the casino is an important part of the MGM Resorts portfolio. The reopening has been a long time coming. This is mainly due to the fact that in the last few weeks it has only slowly become clear that enough visitors are coming to Las Vegas again. Many casinos have recently reopened. The reopening of the Mirage Casino, for example, attracted a lot of attention. The reopening of the Park MGM Casino is of media interest, because one of the big gambling groups is now back in Las Vegas with a full band. All MGM Resorts casinos receive visitors, albeit not to the usual extent. The current hygiene regulations make it impossible to fill the casinos. However, at the moment there is not enough demand to use all casinos to the usual extent. This is reflected not least in the high number of layoffs in Las Vegas. MGM Resorts made particularly big headlines with the 18,000 layoffs. But many other casino operators were also forced to downsize. The hope of many who have lost their jobs is that casino operators will recruit staff relatively quickly once the situation normalizes. For many people, however, the question that will arise over the next few months is how the time can be bridged until then. In addition, there is no guarantee that Las Vegas will ever return to its old level. Hardly anyone could have imagined that the big casinos in Las Vegas could slide into a violent crisis without a major war. But the crisis is here and the corporations and companies in the gaming industry are facing major challenges.
Las Vegas and Nevada were hit particularly hard by the crisis
There are many sectors and industries that have been hit hard by the current crisis. For example, the catering industry will suffer significant damage and will likely take a long time to fully recover. But the gaming industry is also one of the sectors that has been hit hard by the current crisis. At least that applies to the land-based offers. The casinos in Las Vegas are the prime example of concrete casinos that have been operating very successfully for decades. Las Vegas has billions in sales and many companies and corporations have made gigantic profits over the past few decades. But this year everything is different. At times almost all casinos had to close, including all MGM Resorts casinos. But even after the reopening, Las Vegas is far from normal. The casino operators must therefore calculate with lower sales than usual. Perhaps even worse is the uncertainty for casino operators. Nobody can predict exactly when the situation will return to normal. The horror scenario: Perhaps there will be no normalization at all and in Las Vegas the strict hygiene regulations will remain standard in the future. That would be a huge blow for all casino operators, because then it would probably not be possible to ever get back to the old level. But there are many optimists who believe that the current crisis will be completely resolved. That would be the decisive prerequisite for Las Vegas to be able to penetrate back into old spheres.
It is not only a major drama for the city of Las Vegas that revenues from gambling have plummeted. The current year is also difficult for Nevada. A considerable part of the national budget is earned through gambling. It is not only in Las Vegas that there are first-class casinos that generate huge sales. Nevada is known for its very liberal gambling legislation, so that there are many gambling providers beyond the Las Vegas Strip. This year all casinos will have significantly lower revenues than last year. This also means that significantly fewer taxes go to the state. In addition, there are additional burdens from the numerous reliefs that have already taken place not only at MGM Resorts. Further layoffs may be added later in the year. The financial burden on Nevada is considerable this year, and it is not yet entirely clear how the state will handle this challenge. It will likely result in cutting many benefits and taking on additional debt. Above all, the cut in the already meager social benefits could lead to further upheavals. In the best case scenario, Las Vegas will get back on its feet and then Nevada will be able to spend taxpayers’ money again. But currently not only the casino drivers, but also the state of Nevada have to calculate with different scenarios.
Are the golden days for MGM Resorts over?
At MGM Resorts and many other corporations, many people are currently wondering whether the golden era of concrete casinos is perhaps over. The current crisis could usher in a decline that nobody expected in this form. A closer look at the numbers of the last few years shows that Las Vegas in particular was very successful. The major casino locations from Macau to Monte Carlo to Las Vegas have generally gone well. However, Las Vegas has increasingly become a major entertainment center, in which the casinos no longer play first fiddle economically. This is a remarkable development, but it can mainly be explained by the fact that the additional offers in the form of concerts and events have grown significantly. The casinos are still the main reason people come to Las Vegas and that won’t change in the future either. While there are many good reasons to assume that land-based gambling will shrink in the long term. But it is doubtful whether the major casino centers like Las Vegas or Macau will be particularly affected before this development. For many people, a visit to Las Vegas is the highlight of the year.
Die große Konkurrenz für die Beton-Casinos kommt aus dem Internet. In den USA findet gerade eine Entwicklung statt, die Europa in den letzten zwei Jahrzehnten bereits durchlaufen hat. Die Online Casinos sind auf dem Vormarsch und das wird auch die Beton-Casinos nicht unberührt lassen. In der aktuellen Krise hat sich gezeigt, dass die Bundesstaaten, die Online Casinos bereits legalisiert haben, einen klaren wirtschaftlichen Vorteil haben. In New Jersey sind beispielsweise die Umsätze der Glücksspielindustrie nicht so stark gesunken wie in anderen Bundesstaaten, in denen es keine Online Casinos gibt. Nun denken bereits viele Führungskräfte in den großen Konzernen darüber nach, auch in Nevada das Online-Glücksspiel durchzusetzen. Die Bereitschaft dafür ist nach der aktuellen Krise wahrscheinlich sehr hoch. Auch Nevada könnte erheblich profitieren von einem Ausbau des Online-Glücksspiels. Falls wieder einmal eine ähnliche Krise kommen sollte, könnten die Glücksspiel-Fans im Internet ihre Aktivitäten fortsetzen, während die landbasierten Casinos geschlossen sind. Fast in allen Ländern auf der Welt, die Online Casinos haben, hat sich im ersten Halbjahr 2020 gezeigt, dass genau dieser Effekt vorhanden ist. Die landbasierten Casinos sind nicht krisenfest. Das ist die wichtigste Erkenntnis des Jahres 2020 für die Glücksspielindustrie. Die spannende Frage wird nun sein, wie die Unternehmen und Konzerne reagieren. MGM Resorts hat mit der Wiedereröffnung des Park MGM Casinos in Las Vegas einen wichtigen Meilenstein erreicht. Aber für die kommenden Jahre muss sich der Glücksspielkonzern einiges mehr einfallen lassen, um besser gewappnet zu sein für die nächste Krise. Denn eines ist sicher: Die nächste Krise kommt.