PROGNOSIS BY SECTOR Gaming Our prognosis for tribal economies begins with gaming because of its unique importance to Indian country, as previously referenced. In the same manner that closures across various sectors of the U.S. economy will result in negative year-over-year performance even if business returns to full volume when facilities reopen, Indian gaming will experience a drop for 2020 simply due to the current closures, let alone any future results later this year. Unfortunately, even after casinos begin to reopen, business will not return to previous levels, not this year or even the next. There are several reasons for this. First and foremost, structural changes to operating procedures will necessarily have a negative impact on revenue potential after casinos reopen. The general pattern so far seems to be a reopening with around 50 percent of capacity on the gaming floor. This is accomplished by turning off or removing machines to create additional spacing to meet six-foot distancing targets and by controlling the total number of customers allowed into the property at a given time. Some of the facilities that have reopened have had to temporarily suspend admittance during peak periods to avoid exceeding capacity targets. Table games are even more problematic. The pattern so far appears to include a reduction in tables open as well as a reduction in the number of players allowed at each table and the installation of plexiglass barriers between seats. Given the higher labor costs associated with table games, this will have an outsized impact on table-game profitability and likely affect gaming mix into the future. Capacity changes go beyond the gaming floor. Concerts and other large- attendance events remain cancelled or postponed. Foodservice and lodging capacities have also been restricted. Cleaning requirements have slowed customer turnover, while distancing requirements have lengthened lines during waits. While the lengthening has more to do with distance than number of people, the customer perception of longer lines still occurs. Staff are being required to wear masks. This affects their personal comfort, efficiency and ability to communicate. Rules for masking customers vary by property, with most if not all recommending them but many not requiring them. Those that do have handed out masks to customers that did not bring them and have, in rare instances, turned customers away. While that is not known to have resulted in any ugly incidents at Indian casinos, shootings and other intimidation by customers of employees at other businesses around the country, though rare, point to very real risks for staff. The wearing of masks raises other issues, such as smoking and eating/drinking, both difficult to do in a masked environment. Non-smoking areas on the gaming floor have been expanded in some instances to deal with the problem.
∴ PROGNOSIS
64
Made with FlippingBook - Online catalogs