Nevada’s governor had two messages for the state’s gaming industry Monday.
He clearly doesn’t want to order casinos to close for the second time this year.
He also offered a muted apology to restricted gaming operators, many of which had their slot machines turned off July 10.
“I know the past five months have been rough on businesses and residents throughout our country, and Nevada is no different,” Gov. Steve Sisolak said in prepared remarks during a late afternoon news conference in Carson City. “Through shutdowns, reopenings, phases, and more, I understand that the unpredictability hasn’t been easy.”
Nevada’s COVID-19 case count increased this month. A daily average of more than 1,000 positive cases were recorded last week. But there were positive signs also in the data, Sisolak said, allowing the state to implement a “long-term mitigation strategy” that won’t unwittingly punish businesses that are complying with health and safety protocols because of the transgression of others.
That’s what happened in the tavern industry, which constitutes a large portion of Nevada’s restricted gaming locations, defined as venues that have 15 or fewer slot machines embedded into their bar tops. Those businesses were closed when Sisolak ordered stand-alone bars and bar top areas inside restaurants and taverns in seven counties closed due to the state’s COVID-19 surge.
Wynn Resorts CEO Matt Maddox, left, and Gov. Steve Sisolak, tour Wynn Las Vegas. Photo via Las Vegas Review-Journal
Three of the small rural counties were allowed to reopen, but the four others – Clark, Elko, Nye, and Washoe, which include Las Vegas and Reno – will remain sidelined for at least another week.
Major tavern operators, such as Las Vegas-based Golden Entertainment, saw their gaming machines turned off, even though the more than 60 locations collectively had zero recorded violations of COVID-19 protocols.
Smaller Las Vegas tavern and bar operators filed a lawsuit in state court seeking to overturn the governor’s directive. A hearing is set for Aug. 6.
However, Sisolak hinted at the possibility of lifting the order next week when the new mitigation strategy is launched. During the news conference, he seemed to admit the widespread closing of bars and taverns might not have been the best procedure. Many locations, he admitted, were steadfast in following the rules on 50% capacity, social distancing, and the mandatory use of a mask or facial coverings.
“We’ve learned a lot about this virus in the last five months,” Sisolak said. “Phases made sense at the time. We’ve got to be flexible and responsive to what we’re seeing now.”
Restricted gaming can be lucrative in Nevada, with some 2,000 locations operating more than 19,000 games throughout the state. Slot machines inside grocery stores, convenience stores, and drug stores were not affected by the closure orders. Nevada taxes restricted gaming locations through quarterly and annual fees per machine, which is far different than casinos that pay 6.75% monthly on taxable gaming revenue in excess of $134,000.
There isn’t a playbook for legislating by executive order during a pandemic, but changes can be made with the flick of a pen. Sisolak clearly doesn’t want to penalize an entire industry when a minority of locations are violating the guidelines.
He said the new strategy “will include measures that aim to ensure that business establishments who serve unmasked patrons may be closed if it’s a pattern of non-compliance, and that non-compliant resorts could have part or all of their property closed for a period of time.”
That message was also being sent to casino operators.
Toward the end of the news conference, a reporter asked Sisolak about closing casinos. There has been chatter about that possibility after multiple instances of visitors and resort employees testing positive for COVID-19.
“Obviously, casinos are our largest employer,” Sisolak said, and casino operators have been working with his administration to implement the health, safety, cleaning, social distancing, and reduced capacity protocols implemented by state gaming regulators.
“We’re monitoring them very closely, but I don’t want to speculate any further,” he said, adding that the Gaming Control Board will take enforcement action against individual casinos when needed.
He was choosing his words carefully.
The 78-day gaming shutdown led to economic instability for the state. Not all casinos have reopened throughout Las Vegas and Reno, and furloughs are now being converted to layoffs at many gaming companies.
A little more than 12 hours after the news conference, the mammoth Consumer Electronics Show canceled its 2021 event due to COVID-19. CES annually brings 170,000-plus to Las Vegas each January and provides an economic impact of close to $300 million.
The cancellation – along with a similar move earlier this month by the Global Gaming Expo – sent an ominous signal to the Las Vegas Strip.
The financial blows being dealt to Las Vegas and its casino industry by the coronavirus pandemic, it seems clear, are destined to leave bruises well into the next year.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter
