The CEO of one of the globe’s largest gaming companies went on CNBC Wednesday morning and told reporters that he believes it will take about a year before the American casino industry is running at pre-COVID-19 levels.
Hard Rock International Chairman Jim Allen believes that while some regional casinos will rebound quicker than others, the tourism industry as a whole is going to struggle for quite a while.
“There’s going to be a real challenge, especially here in the United States, as far as ramping the business back up,” said Allen. “And frankly, we’re planning on that taking at least a year.”
Hard Rock International, which was bought by the Seminole Tribe of Florida in 2007, owns casinos, hotels, and Hard Rock Cafes all over the world. Allen noted that the company’s hotel in Shenzen, a city just outside Hong Kong, is only operating at 12 percent capacity despite being open for nearly a month as the country recovers from the first wave of coronavirus infections.
The company’s most profitable properties come from its six casinos in Florida, which Allen describes as a regional business. He believes casinos that attract people traveling by car instead of by plane will rebound before the rest of the industry.
Even with the regional aspect of Florida casinos working in his favor, Allen believes it will still take some time to fully recover. Florida Gov. Ron DeSantis recently reopened beaches for limited activities, but Allen believes this action doesn’t indicate the state is ready to return to normal.
“While we see a ramp up, when we see the beaches in Jacksonville as crowded as they were, that seems like that’s kind of exciting,” said Allen. “But I think that’s just the initial get-out-of-the-house [push].”
Allen believes that sustained business growth will not come as quickly as people flocking to the beach. When they do ramp up, however, he thinks that casinos will take the necessary steps to keep customers safe, noting the steps his casinos took during its final days of operation.
“We were doing a lot more than social distancing,” said Allen. “One slot machine was on and four were off. We were only allowing three individuals at a gaming table.”
Florida casinos have been closed since all the properties were shut down on March 20. A date for reopening has not been announced yet. It was one of the last states to shut down operations.
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