BGC warns new Covid-19 measures could see 50% of land-based casino jobs lost
Trade body claims new rules sound “death knell” for sector as Rank CEO demands “critical” furlough scheme extension
Prime Minister Boris Johnson may have sounded the “death knell” for the UK’s land-based casino sector with his latest Covid-19 restrictions, according to the Betting and Gaming Council (BGC).
On Tuesday, Johnson unveiled the latest measures to stem the growing number of UK coronavirus cases, including casinos among the list of venues legally required to close their doors at 10pm.
The decision to include casinos clashed with the recommendation of the Department for Digital, Culture, Media and Sport (DCMS) which had requested an exemption.
The sector had also offered to close casino bars from 10pm in order to avoid having to close, but to no avail.
“The 10pm curfew will slash casino incomes by up to 75% and will likely lead to half their workforce – some 7,000 people – being made redundant,” BGC CEO Michael Dugher explained.
“Without immediate and substantial financial help from the government, perfectly viable casinos – which between them paid £1.3bn in tax to the Treasury in the last three years – will simply go to the wall.
“How does the prime minister hope to power an economic recovery if he’s sat back and allowed whole industries to go to the wall?” Dugher added.
The BGC CEO has requested an “urgent economic package” be put in place to mitigate damage to the sector, including an extension to the UK furlough scheme beyond 31 October.
Rank Group, the UK’s largest land-based casino operator, lamented the blanket 10pm curfew as a “crippling blow” to a sector already struggling following the earlier UK-wide lockdown.
Rank operates 52 Grosvenor casinos across the UK, as well as dozens of Mecca Bingo halls.
“Well over half of our revenues are generated after 10pm and that puts casinos in the unenviable position of being the most severely impacted industry by the government’s decision,” Rank Group CEO John O’Reilly said.
“The prime minister said that he will ensure that businesses can stay open in a Covid-compliant way. The only way we can stay open and survive is with an economic support package for over 4,500 Grosvenor colleagues who are now very concerned about their futures.
“An extension to the furlough scheme beyond 31 October is critical,” he added.
Elsewhere, the British Horseracing Association (BHA) described the new measures as a “serious blow” to the sport, which returned on a behind-closed-doors basis in June.
“We are working to a recovery plan, but today’s announcement will set back our progress,” BHA CEO Nick Rust said.
“We will urge the government to provide financial support, as they have indicated they are considering, and to accept the case for urgent reform of the Levy.
“Our loyal owners and our key international investors have stood by us and we ask government to work with us to maintain that confidence in racing and in Britain,” he added.
UK racecourses could face lost revenues of £250-£300m in 2020 due to Covid-19 according to the BHA, as well as the threat of many owners and trainers being lured overseas by the prospect of greater financial rewards.