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Las Vegas casino perks a thing of the past?
Are the perks we’ve been accustomed to receiving in Las Vegas casinos going to be a thing of the past?
Just like our grandparents and parents were scarred by the Great Depression that forever changed how they looked at money and watched every penny and expense the rest of their lives, analysts expect to see that in the gaming industry for a while to bolster earnings.
The coronavirus has put the casinos in cost-cutting mode that started with laying off employees who hadn’t returned to work as properties reopened to a 50% state-mandated capacity. It’s likely to extend to player promotions and amenities like buffets, shows and nightclubs. They have been curtailed for safety and social distancing, and Barry Jonas, director of equity research/gaming at Truist Securities, said whatever perks return may not be at the same level again because many are considered loss leaders.
Casinos are finding customers coming to their properties for now are more hard-core gamblers who don’t need the amenities to attract them. Since many Strip properties’ models are based on amenities to attract tourists, they will return in some fashion. But Jonas said there will be more thought behind it, and at casinos where amenities aren’t as vital, there will be even more scrutiny.
“The question is do more amenities need to come online? The answer is yes, but they need to be more profitable,” Jonas said. “Maybe not at the same margins as the casinos are seeing today, but you see focused and disciplined management styles from larger organizations who just came through the eye of the storm. It was not too long ago where we were questioning every one of our operators’ ability to survive. We have now passed that with revenues coming in and profitability up.”
Lire la suite de l'article: https://www.gamingtoday.com/industry/Ne ... f_the_past
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