The impact of capacity restrictions on food and beverage outlets and entertainment or function space and the need to shift emphasis to higher value core gamers to compensate for gaming capacity changes is likely to have a long-term effect on the proper scale of those components in Indian casino resorts to balance effectively with the gaming floor in the post-pandemic economy. The trend, seen in Las Vegas for years and growing in Indian country before the pandemic, of increasing revenue from non-gaming sources is likely to be reversed for at least the near term and potentially on a more permanent basis. Even the need for lodging and the type of lodging offered is expected to change to meet the new operating reality for the casino itself. Aside from public spaces like the gaming floor, restaurants and banquet halls, back-of-house space needs are going to increase in the post-pandemic world. More space for lockers, changing areas, PPE equipment and supplies, employee dining and break rooms, inventory storage, staging areas and workspaces will be required to allow staff to do their work and prepare for entry into their shifts and exit into the outside world. While returns on back-of-house space cannot be justified in the same way as gaming space, there will be an increase in the practical minimum need to support worker efficiency, maintain employee health, retain staff and prevent new outbreaks. The new PPE-laden work environment is going to wear most heavily on line staff. Failure to address their comfort and safety concerns will reduce effectiveness and customer service. The increased spacing on the gaming floor will ultimately drive a reevaluation of gaming machines and table games themselves. In an article we published in “Indian Gaming Magazine” entitled “Indian Gaming 2028,” we envisioned a future gaming floor with gaming stations rather than traditional slot machines. The gaming stations would have more space, captain’s chairs, more immersive video and sound experience and the ability to play multiple games, pay lines and denominations at the same seat. Spin-off benefits of such a model would be more time on machine per customer as they would not need to wander the floor to change games or find their favorites and foodservice could even come directly to them. New space and foodservice regulations may very well speed such a transition. Although the technology is not here yet, VIP chairs with greater comfort and legroom and controls on the seat arms to run the games were already being shown at ICE London earlier this year before the pandemic closed everything down. Table games are more problematic with the new spacing requirements given the cost of labor involved. We anticipate an increase in the move, already underway, to electronic table games and stadium gaming due to both labor cost and floor spacing issues. For table games in particular, but for machines as well, reduced capacity per square foot will necessarily affect wagering minimums. While increased minimums will reduce some bread and butter low-end volume demand, the profitability of that demand will no longer support efforts to cater to it at the same level as before
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