Why are casinos reducing their poker machines?

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Casinos Are Reducing Poker Machines to Facilitate Social Distancing and Curb Coronavirus Spread

Australia's two largest casino operators, Crown Resorts and Star Entertainment Group, are implementing measures to reduce the number of operational poker machines by half. This decision is a direct response to the escalating coronavirus pandemic, aimed at encouraging patrons to maintain physical distance and thereby slow the transmission of the virus. The move underscores the significant pressure the tourism and entertainment sectors are under as authorities worldwide implement measures to limit public gatherings.
Halving Operational Poker Machines to Enforce Physical Distancing

Both Crown Resorts and Star Entertainment Group, which collectively operate over 4,000 poker machines primarily in Sydney and Melbourne, will deactivate every second electronic machine. This strategy is designed to ensure that gamblers are seated further apart. For instance, Crown Resorts, with a 37 per cent stake held by billionaire James Packer, and its rival Star Entertainment Group are taking this step to adhere to public health directives aimed at mitigating the spread of COVID-19.
Complementary Measures and Regulatory Alignment

Beyond reducing poker machines, the casinos are also implementing capacity limits in other areas. Crown Resorts will restrict individual conference or restaurant spaces to a maximum of 450 people, while Star Entertainment Group will limit such areas to 500 individuals. These figures align with the Australian government's advisory, issued from Monday, against non-essential gatherings exceeding 500 people. Crown confirmed its social distancing policy received approval from the chief health officer of Victoria state, and Star stated its measures are consistent with Federal Government policy.
Broader Industry Impact and Market Reaction

The decision to reduce operations reflects a wider trend of closures and restrictions impacting the global entertainment industry. In Las Vegas, for example, Wynn Resorts Ltd announced a complete closure for two weeks due to the virus. This challenging environment has directly affected the stock performance of Australian casino operators, with Crown shares falling 11 per cent to a nine-year low and Star Entertainment Group shares plummeting 24 per cent to a record low. These declines occurred as Australia reported nearly 300 cases of the coronavirus, resulting in five deaths.

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Why are casinos reducing their poker machines?

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