NY & NJ of the USA is striving to get on track as the nation witnesses drop in COVID-19 cases. New Jersey (NJ) may even permit Atlantic City casinos to open (with limited operations) by July 4, as per some reports. All the nine casinos in the Atlantic City were closed in March 2020 following the orders given by Gov. Phill Murphy to control the speed of the spread as much as and as soon as possible. Now he wishes to open the casinos with safety parameters like temperature checks, wearing masks, etc.
The Atlantic City casinos have incurred losses of tens of millions since mid-March.
Governor of NY, Andrew Cuomo, is preparing for the reopening of New York City. That means around 400,000 workers could return to NY. Upstate regions are allowed to level up to Phase 2, making sure around 50% of the employees would be back to work. Workers will be tested twice a week.
COVID-19 has hit every sector of the economy and the part of the state. It may cost the South Jersey economy over $5 billion, and the region may take longer than it took to overcome the 2008-09 recession. The American Gaming Association came with an estimation that a two-month shutdown of Atlantic City’s Casino industry can lead to a loss of $1.1 billion.
As per the report on April 29, NJ has lost over $700,000/day worth casino-related taxes and fees since the closure of the casinos. Atlantic City casino profits are reduced by 65% amidst coronavirus.
If the state keeps the Atlantic city’s casinos closed through June and July, it might lose $1 million of taxes and fees daily. However, to keep the entertainment factor alive and open some opportunities to earn money during the Corona outbreak, Murphy permitted online gaming in New Jersey. Taxes on online gaming are higher (15%) than retail casinos (8%).
New Jersey and the other USA states are striving to get the economy back on track while making sure that the death rate and spread of COVID-19 get reduced considerably. However, the impact that the crisis has made on the economy might last longer, and the recovery would take some time.