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While online pokies have witnessed the best sales yet, it has been a whirlwind for land casino stocks. But, it is hard for casino games to be entirely phased out. After all, the world is going to need a fun way of winning that real money through gaming.
Bricks and Mortar casinos are among one of the most affected services by the COVID 19 shutdown in 2020. But, they have recently started reopening and trying to get back on their feet. And, while some have dared to open and see where this takes them, others are still scared of taking any risks right now.
Already, some casino stocks are already on the rise since their reopening three weeks ago. This might be able to give hope to casinos that are still scared about getting back on their feet. However, Macau casinos are still struggling to get back on their feet after being open for over a month now.
Impact of COVID 19 Shutdown on Casino Stocks
Part of the conditions of the COVID 19 shutdown conditions includes the closing of non-essentials. And, land casinos where part of these businesses. Also, casinos are one of the high-risk zones which explains why they had to be shut down immediately.
Therefore, casinos stocks plummeted as no one once to invest in a business that will not give them any returns. However, land casinos tired to ensure their investors’ safety by bringing in extreme measures to ensure their investors’ safety.
For example, The Star Group had to lay off 8 500 of its workforce. Additionally, salaries for some of the directors of the group were cut down by 75%. And, it was not the only one that was making cuts either, in total over 100 000 casino workers were laid off by their employers.
The Current Land Casino Situation
Currently, land casino stocks are slowly getting back in demand. Also, analysts have given land casinos 200 days to get back in full force. But, some casinos have proven that they do not need 200 days to recover. For example, while there is a 140% increase in stocks for Wynn casinos. Other casinos have since recovered from and get back to the 740% 2019 increase in stocks.
Macau casinos have been one of the most affected of all the casinos. Therefore, they have recorded a 93% decrease in inrevenue this month. And, there is still debate on whether or not they are going to be able to get back to where they were before.
Above: the chart is showing how the casino stocks witnessed a less than 100 % drop in sales. Now, they are slowly recovering and are slightly above the 100% mark. Meaning, there is still hope for the survival of land casinos.
Conclusion
There is still hope for casinos world-wide considering that other countries have just recently started letting loose on their lockdown regulations. Therefore, if you want to buy casino stocks, you still have the room to risk it and just hope for the best.
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