NSW RESTART LOOKS POSITIVE FOR GAMING

The USA Tribal Casino market has distinct similarities to the Australian club market where players tend to be regular visitors and smaller gamblers who are attending the casino for primarily social reasons. Over the last few weeks USA Tribal Casinos have been slowly reopening very carefully with appropriate restrictions on numbers of active machines, new cleaning regimes and the number of guests allowed in each space to maintain social distancing. Even so, stories are coming in from these casinos describing good numbers of guests lining up to enter, who have been eagerly awaiting a resumption of their social visits to venues.

The data is now being reported in NSW Clubs and Hotels and suggests a similar positive start upon reopening. While clubs and hotels have numbers restrictions and a large number of machines are currently inactive the average machine turnover and net per day results are describing a very positive start for both turnover and net.

Obviously, while half the machines are still switched off across NSW the overall total turnover and net profit are well below March (when the venues were shut down) and also well below June 2019. The biggest loser here is the state government who will see reduced taxes and CMS/DMS who will see revenue loss due to half the machines turned off.

For the players though, reducing the numbers of machines and leaving only the best games on the floor has seen a higher turnover and net per machine per day than what we were seeing previously. This has sped up the games for players and probably made their experience a little more enjoyable.

For clubs and hotels, the overall net is probably down but the daily machine average is off to a flying start:

The same trends are being recorded for Clubs and Hotels in both Metro and Regional venues:

Comparison

If you estimate the net total for the first 7 days of June compared a statistical estimate* of a 7-day period in March (Close down) and June 2019 (same month last year) using the above data:

For the first 7 days of June NSW Clubs are 2.1% above June last year and 12.4% above March

For the first 7 days of June NSW Hotels are 31.3% above June last year and 31.3% above March

This suggests that in both cases that it has been a positive restart.

*Estimated 7-day comparison = (daily average X number of machines X 7 days)

Note: All data sourced from MAX reports