Colorado casinos were expected to take a hit.
The only question was, “how big?”
Now that first quarter results from casinos around the state have started to come out, the picture is coming into focus. As you would expect, from the time COVID-19 hit the country in mid-March, it’s not a great picture.
Last week, Twin River World Holdings released the results from the first quarter that ended on March 31.
As the release highlighted, full quarter results were impacted by the mandated shutdown on March 16 in Colorado.
The Providence, Rhode Island-based company manages casinos and properties all over the country.
The casinos that Twin River runs in Colorado are the Golden Gates Casino, Golden Gulch Casino and Mardi Gras Casino in Black Hawk. Twin River also runs Arapahoe Park racetrack in Aurora.
Two of the three casinos have partnerships with sportsbooks that are up and running in Colorado.
There are currently five apps for Colorado sports bettors to use. That is out of 17 that will launch in the future.
- DraftKings: Partner with Golden Mardi Gras
- FanDuel: Partner with Golden Gates Casino
- BetMGM: Partner with Midnight Rose Hotel and Casino
- BetRivers: Partner with J.P. McGill’s Hotel and Casino
- BetMonarch
Revenue lost
Revenue for the first quarter of 2020 decreased 9.5 percent to $109.1 million from $120.6 million in the first quarter of 2019. Net loss for the first quarter of 2020 was $8.9 million, a decrease of $26.5 million, or 150.5 percent, from net income of $17.6 million in the first quarter last year.
Prior to the shut-down, Twin River revenue was robust in the first two months of the year, up $17.1 million, or 23.4 percent, to $90.3 million compared to $73.2 million in the prior year period.
“Our Company started the year strong, reporting year-over-year revenue growth of over 23 percent in the first two months of the quarter,” Twin River President and CEO George Papnier said in a release. “While our full quarter results were meaningfully impacted by the closure of our properties in March, we have taken broad-based actions to reduce expenses and enhance liquidity.
“Our leadership team has also remained hard at work executing on key strategic growth initiatives, including our recently announced deal to acquire three casinos from Eldorado and Caesars to further expand our geographic diversity and enhance our financial profile.
“Despite near-term uncertainties, we are confident that our strong balance sheet, liquidity and long-term strategic planning will enable us to emerge from this crisis in an even better position.”
Plan for reopening
While it’s still unclear when Colorado casinos could reopen to the public, Twin River has put together a multi-faceted plan for when the three casinos in Black Hawk can welcome back patrons.
The plan will include, among other things, screening of team members and guests before entrance into the casinos.
The company will also use thermal imaging cameras, enforcement of social distancing guidelines, including spacing between video lottery terminals (VLTs) and limited or no table games to start. It will also have frequent cleaning and sanitizing protocols for all areas, mask protection, and public awareness signage.
The other way Twin River has prioritized employee health and safety is by having health coverage for all team members that have been furloughed. The company also established a fund to provide financial assistance to employees experiencing significant hardship.
“During these times, our highest priority is the health and safety of our team members, customers and communities,” Papanier said in the release. “We continue to support the actions taken by state and local officials to help slow the spread of COVID-19, including the temporary closure of our properties, and continue to look to provide assistance wherever possible.”
Future outlook
Since the current “safer-at-home” policy by Colorado Gov. Jared Polis remains in effect, there’s still no clear date as to when casinos could reopen.
However, Polis did say at a recent news conference that the next steps for when restaurants will reopen could come on May 25.
If that goes forward and restaurants do welcome back guests in early June, one would think that casinos could follow shortly after.
In the meantime, Twin River expects that the coronavirus pandemic will continue to negatively impact its results until its properties are allowed to reopen in full to the public and its guests return to pre-pandemic activities.
