It has been reported today that the world’s leading gaming firms are in financial crisis amid the Covid-19 outbreak as stocks have plummeted to record lows.
Gaming and hospitality companies around the globe have been some of the worst hit by the crisis with stock markets falling faster than ever in recent history.
A number of statistics have today been released that reveal the true extent of the devastation caused by the virus both economically and financially:
– Galaxy Entertainment Group closed at HK$38.60 on Thursday, down 38% from its recent high of HK$62.20.
– Sands China fell to HK$26.15 from HK$32.45.
– MGM China fell to HK$7.64 from HK$8.81.
– SJM Holdings fell to HK$6.10 from a recent high of HK$10.50.
– Scientific Games Corp fell to US$4.71 from US$30.24.
– International Game Technology fell to US$4.12 from US$14.73.
– Aristocrat fell to AU$18.00 from AU$37.69.
In light of what has been witnessed in the Asian gaming and hospitality industries, the news comes just hours after president and chief executive officer of the American Gaming Association Bill Miller spoke about the importance of mitigating the impact on the industry and called on the US government for swift action:
“The impact on our employees, their families, and communities is staggering, and the implications extend far beyond the casino floor. Leading technology companies that supply the industry, and the nearly 350,000 small business employees that rely on gaming for their livelihood, are also feeling the devastating blow of this unprecedented public health crisis.”
Miller added details of the potential impact on people’s livelihoods and the country’s economic affairs:
“The federal government must act swiftly and comprehensively to get America’s hospitality employees, and the small businesses that support them, back to work. Gaming employees, their families, and communities are bearing the brunt of this economic standstill and will continue to suffer if Congress and the administration don’t take immediate action. In total, these mass closures will rob the US economy of US$43.5 billion in economic activity if American casinos remain closed for the next eight weeks.”
Finally, Bill Miller concluded by highlighting the knock on effect of failing to support the industry:
“Gaming is an economic engine, employing millions of local residents, generating community investment through vital tax revenue, and supporting small businesses in communities all across the country.”