Casino stocks have been hit hard amid the global Covid-19 pandemic. Established casinos and famous brands have had to close down following stringent guidelines by governments and the World Health Organization (WHO).
It is not business as usual, especially in the brick and mortar outlets. Things do not appear to get better if the resurgence of the virus in several cities across the world is anything to go by. It had been projected that eateries, entertainment spots (including casinos), worship places, and other public meeting places would reopen by May. That applied in very few cities. Others that had opened have been forced to close down again.
On a positive note, though, virtual sports are going on around the world. People are taking notice of the hidden gem in eSports, and before long, it will be accepted into the mainstream. However, even with the performance of these virtual programs, casino stocks during the pandemic have been stable. No one wants to commit. No one knows what will happen in the next few months. Everyone is practicing extreme caution.
It is not clear when things will move back to normal, and there are no guarantees of gamblers coming back. There shall be fears of travel or getting into public meeting places. Regardless of how quickly the world develops immunity to the disease, the number of cases and deaths got people thinking.
Fresh outbreaks
There were some good signs when countries started recording drops in the numbers of new cases. Lockdowns were bearing fruits. That would come at a cost; the economy was hurting. About the betting and casino industries, sports events were stopped. That meant there were minimal betting options for the fans.
A few months later, leaders staged measures to reopen economies gradually but taking a cautious approach. Unfortunately, some of the first regions that opened public places have had to rethink their plans. Australia is a perfect example of where a fresh outbreak has been announced. Cities like Victoria have been placed on lockdown once again.
Other popular casino destinations like India and China are suffering a similar fate. Moments after China was almost declaring itself Covid-free, new cases started cropping up, forcing administrators to partially lockdown some areas.
India, on the other hand, has not had time to breathe. The surge in numbers has remained worrying throughout. Given the high population in the Asian country, casino stocks were starting to do well before the outbreak. It will take time before we can say the same after the country became the 3rd most-affected country after the USA and Brazil.
Which way for casinos?
At the moment, there is more focus on online casinos. Indeed, they offer a lot in terms of entertainment and rewards, but that would not be all. Tourist destinations famed for their casinos are suffering from lack of business. Initially, visitors from all around the world thronged Las Vegas for the unbeatable casino experience. Casinos in France and New Zealand will not be the same without the people.
Entrepreneurs can only hope that things will change for the better soon, but before then, they are faced with challenges of ensuring they can take proactive measures. The economy will not remain closed forever; therefore, it will be up to investors to show they can put in place the right steps for their businesses to reopen.
