Colorado’s sports gambling industry will help casinos cut losses from COVID-19
Colorado will welcome legal sports gambling in two days, but to an absence of events
There are more than a dozen casinos in Black Hawk, Colorado, and the town has been famous for that large number of casinos in such a small town. There is a flat fee per slot machine and gaming table operating in the facilities, which represents a total of $700,000 in revenue going to the city every month. Now, the city officials have decided to waive more than $1.4 million in device fees so casinos can survive during these difficult times caused by the COVID-19 pandemic. Soon, though, that loss could be somewhat offset, as Colorado will officially launch its sports gambling industry in two days.
The $1.4 million come from two months waived, March and April. “It’s very helpful and the City of Black Hawk has always been very supportive of the industry,” Monarch Casino and Resort CEO David Farahi told FOX31. He indicated that the gaming venue is seeing zero income leading to the furlough of almost the entire casino staff. “I haven’t even been able to stick my head up to look at the end of the tunnel right now. We’ve got our heads down just trying to batten down the hatches as much as possible, so I don’t know if I’m in a tunnel yet,” answered Farahi to the media when he was asked if it’s hard to see the light at the end of the tunnel.
Farahi is also the president of the Colorado Gaming Association representing Colorado’s casino industry. “Every casino in America is closed right now and it’s a very trying time,” he said. Farahi said that the total revenue generated from Colorado’s casino industry was $700 million annually. So far, casinos have already lost nearly $81 million since the first March 16, when the authorities issued shutdown orders for nonessential businesses.
Hopefully, some of the massive losses will be recuperated starting this Friday. Colorado has been working hard to get its sports gambling market up and running, and has issued over a dozen licenses to casino operators to launch their sportsbooks. Despite the fact that there isn’t a lot of sports to choose from right now, things are starting to pick up, with soccer and baseball making appearances in different parts of the world. Additionally, the NBA Draft is coming soon, which will give additional gambling opportunities. It’s going to be a long road to full recovery, but the rebuilding process will begin within the next couple of weeks.