The temporary closure of the five Upper Peninsula casinos was extended by the Sault Ste. Marie Tribe of Chippewa until June 1st. The decision followed pending health concerns associated with the coronavirus pandemic and the extension of social distancing and stay-at-home measures unveiled by Michigan authorities.
Also, the delay in the Kewadin casinos’ reopening is fuelling a potential conflict with Attorney General Dana Nessel and Governor Gretchen Whitmer, who have expressed their opposition to the early reopening of casino venues citing fears that the gambling facilities’ patrons could ease the further spread of the coronavirus infection.
Late on May 8th, Kewadin informed its employees that its casinos’ reopening is to take place later than expected, with the date when the facilities are set to resume operation being changed from May 16th to June 1st. Yesterday, Allen Kerridge, the CEO of Kewadin Casinos, shared that the gambling operator was following along with the protocols of the state authorities and other organizations. He further noted that the decision for the delay has been based on talks with law enforcement bodies and health services and the information unveiled by the federal and state authorities.
Coronavirus Pandemic to Have Significant Negative Impact on Tribal Casinos’ Performance
The problem with the delay of the planned reopening of casino venues across the state is that many Native American tribes in Michigan are dependent on casino revenue to support various health, education and government services. The forced closures of their gambling facilities due to the coronavirus outbreak has left many tribal governments in a difficult situation.
On the other hand, the tribal casinos in the state have a sovereign status to make their own decisions regarding their operations and businesses, which basically means they would be able to open without Michigan Governor’s approval. Tribal leaders in the state have been pressed by economic concerns to take into consideration a possible reopening of their gambling venues before Governor Whitmer’s decision to lift the lockdown measures. However, some of them have already shared concerns over the safety and health of both their customers and employees.
Mr. Kerridge has revealed that casino employees are set to continue to receive emergency pay and benefits throughout the continued shutdown. Some funding provided by the Federal Government may have also played a certain part in the tribal leaders’ decisions to keep their casino operations shut for the time being. This funding has provided the tribes with an essential resource to stick to the closures as part of the social distancing measures across the state.
Still, according to analysts, regardless of the tribal casinos’ opening dates, the coronavirus outbreak is expected to have a significant impact on casino operations and revenues in the near future. Even after the reopening, casinos are expected to suffer due to the fact that they would still be forced to drastically reduce their availability to customers.
