Casinos in Las Vegas as well as around the United States and the world are shut down due to the outbreak of COVID-19, otherwise known as the coronavirus. Because of the closures, many people are out of work and there is no end in sight as to when things will get back to normal. One casino table game company based in Las Vegas is trying to make things a little easier by not billing their clients and paying employees at this time.
Before releasing their earnings data, Galaxy Gaming stated that their message from earlier in March still rings true. The company has the cash to continue employee payroll while casinos are closed. To be able to help pay staff members, the company took $1 million from its revolving credit line as added collateral.
Galaxy has enough projects in the works that they can maintain liquidity to continue operations for a certain period of time beyond the closure. Just how long has not been provided. In a statement, CEO of Galaxy Todd Cravens, said that in the past week, the world has changed drastically and customers of the company appear to be the hardest hit due to the mandatory closures in many areas and more to come in the future.
Galaxy does not want to add to the burden of their customers so they will not be billing at this time. The company stated further they hope the crisis passes quickly and they look forward to working with customers on the other side.
In the statement, the company’s Chief Financial Officer stated that the company will be pro-rating licensing arrangements for part of each month’s billing for clients who are closed at this time.
New Purchase for the Company
Galaxy Games is doing well, so much so that on top of assisting their employees and clients, they have also been busy working on a deal to buy Progressive Games Partners LLC, a company based on the Isle of Man. Galaxy will be paying just over $10 million on the price paid in cash.
With the acquisition, the company will have even more gaming options to provide their clients in the states. Progressive Games offers such casino table game as Caribbean Stud Poker and Perfect Pairs. The company will be using the acquisition as a way to increase their online gaming business and moving into new markets as they are made available.
The coronavirus has had a huge affect on major gambling areas like Las Vegas and Atlantic City in the US. It has essentially shutdown the nation except for essential businesses like grocery stores and restaurants. Several regions in the area are under a stay at home order and are unable to leave their homes unless absolutely necessary.
Over three million people are without work and have filed for unemployment compensation in the US. Included in this number are tens of thousands of casino employees. Some gaming companies have offered payment to employees, like Galaxy Gaming, while others have only been able to extend benefits.
The casino industry is hoping they will receive help from the federal government as options are being provided to businesses to help keep them afloat during this trying time.
We shall see in the coming weeks how the industry fares with absolutely no gaming taking place at land-based venues. Hopefully, operators will be able to find ways to stay in business while no money is coming in due to the shutdown.