The COVID pandemic was a watershed, a tipping point, or possibly even a black-swan event. It certainly was rare and unexpected and its impact profound.

The world after coronavirus is different in fundamental ways than the world before, or so it seems. Some of the changes may turn out to be temporary, while others will be with us for a long time. Understanding which is long-term and which is short-term is the social and business challenge of the times. Vinson Cunningham in The New Yorker wrotes, “The sensory deprivations of social distance and the funk of onrushing bad news have made me deeply hungry for fun.” One of the tasks of a casino is to provide some of that fun.

The drive to find fun may be a significant force in the economy, but it is not one size fits all. Older people appear to be less willing to take risks to have fun and may have even redefined fun as something quieter and closer to home, while younger ones are less timid, open to experiment, and more willing to grab the zipline and fly down Freemont Street in downtown Las Vegas. A demographic change on Fremont Street is just one of the noticeable trends the gaming industry is experiencing. The underlying economics underwent significant change, at least in the short-term.

The casino industry has seen its revenues and profits go up while its customers counts and payroll expenses have gone down. The COVID crisis has given casinos an opportunity to boost their operating profits. That trend toward improved margins has been driven by chance as much as intent; employees are harder to come by these days. It is a national trend, not enough employees to fill the vacant jobs. There are more than ten million unfilled jobs and an unemployment rate below four percent. Explaining and addressing that problem have proven to be troublesome.

Part of the explanation goes back to the zipline: Younger people have been more willing to go back to work. They are also more willing to change jobs. Adults 55 and over retired at a higher rate rather than return to work after the forced lockdowns; in the third quarter of 2021, 66.9 percent of adults between 65-74 were retired, as opposed to 64 percent in 2019. Younger people are working and earning more by comparison with their older counterparts.

Attracting those younger people willing to work has become a major challenge for all industries. It has driven up wages and created several categories of bonuses and other financial incentives that were rare or non-existent before the crisis. Job fairs have become common. The Clark County Commissioners held one recently that drew more than 6,000 job seekers. Clark County Commissioner Jim Gibson said, “If you haven’t looked for a job in a while, you may be surprised with what you’ll find this time around. In many cases, wages have increased and many employers continue to offer hiring bonuses — some as high as $1,500 just to take the job. There is an opportunity for you.”

The San Manuel Band of Mission Indians has been holding virtual career conferences and job fairs for a year. Besides recruiters eager to sign up new employees, the conferences feature panels discussing casino issues. At a recent conference, panelists discussed the changes they have seen since March 2020. One member concluded that business travelers extend their stays and leisure guests demand to pre-plan more of the properties’ experiences. Travelers are also seeking out more musical entertainment. Younger generations are more socially conscious than ever and want resort properties and their partners to espouse equality, social justice, and inclusion to get their money. And there we are back at the zipline. Casinos are being forced into demonstrating more creativity about jobs and entertainment.

The pandemic is not the only black swan the casino industry has faced. The events of September 2001, the Great Recession, COVID, and now a war and inflation qualify. Reno has had its unique set of crises for gaming. Indian gaming was probably the biggest, but certainly 2001 and the Great Recession were equally transformative. In fact, those factors have worked in concert to force casino operators to either pack up and leave town or transform. Harrah’s Reno closed its doors and dozens of other icons of the 1960s, ‘70s and ‘80s took the Harrah’s route. The Eldorado expanded past Reno and eventually purchased Caesars, becoming the country’s largest gaming company. Jacobs Entertainment is building an entire entertainment district, the Grand Sierra evolved to cater to a specific market, and the Peppermill and Atlantis have invested millions to remain relevant.

The Atlantis is opening its latest remodel, redesign, and upgrade, its Concierge Tower. The project began during the pandemic. It was conceived with the knowledge that the Reno market had changed dramatically and the new customers demanded a more sophisticated product. Indian gaming in California deprived Reno of much of its drive-in weekend trade. But Reno has experienced a much greater shift in its economy with the arrival of Tesla, Panasonic, Amazon, and other 21st century companies. According to John Farahi CEO of the Atlantis, “This market has become much more sophisticated. You have so many companies moving here from California and all over the country, so the market now demands this caliber of product.”

The Atlantis had the advantage of a pre-COVID perspective. The Reno market was already changing and the pandemic provided the opportunity and incentive to develop new products. According to John Farahi, the redesign will continue until the entire property is transformed into a destination suited to the more sophisticated and demanding customers of the post-pandemic era.

If the social changes brought on by the coronavirus crisis are permanent, most casinos will be faced with the need to do the same. The older, regular customers probably don’t expect or even want much change. However, younger, riskier, and more demanding people will insist on it if you are to get their business. And if the analysts are right, the young ones will be driving the economy from now on. The guard is changing.