UK Casinos Shut Down as Country Re-Enters Lockdown

The United Kingdom is re-entering a period of confinement beginning on November 5th. This signifies that all establishments associated with wagering, such as casinos, betting parlors, arcades, and bingo halls, will be required to shut down. The Prime Minister, Boris Johnson, attributed this decision to the ongoing coronavirus pandemic. The period of confinement will persist until at least December 3rd, but it could potentially extend beyond that date. This marks the second time the UK has implemented such a measure. The initial lockdown occurred in March and lasted until June. The government had previously declared that they would not impose a second lockdown, but they have reversed their stance due to the escalating rate of virus transmission.

Across numerous areas, including Greater Manchester, Merseyside, Lancashire, and South Yorkshire, the most stringent level of the three-level system – which mandates the closure of all venues, encompassing casinos – has been put into effect.

Wales has instituted a two-week “circuit breaker” lockdown, commencing on October 23rd and anticipated to persist until November 9th. This has led to the temporary cessation of operations for all casinos in the nation.

Scotland has not yet declared a second nationwide lockdown, but has implemented a five-level framework resembling the UK’s tiered system, resulting in the closure of casinos in regions categorized as posing the highest risk.

Land-based casinos in Northern Ireland are presently still operational, but casinos in the Republic of Ireland will not resume operations until at least December 2nd.

France, Germany, Italy, Belgium, and the Czech Republic are among several other European nations that have implemented nationwide lockdowns in recent weeks in response to the second wave of the COVID-19 pandemic.

In reaction to the newly implemented lockdown measures, GVC Holdings has issued a cautionary statement outlining the impact it will have on its operations.

GVC stated that the closures in the UK could lead to a £27 million (€29.9 million/$34.7 million) decline in earnings before interest, taxes, depreciation, and amortization (EBITDA) under the new restrictions. Combined with restrictions across Europe, GVC indicated that the total drop in EBITDA could reach £37 million.

GVC stated that extending restrictions to all its UK locations for a full month would lead to a £34 million loss in earnings before interest, taxes, depreciation, and amortization (EBITDA). If the closures were extended to the European continent, it is anticipated to result in an extra £9 million loss, bringing the total EBITDA loss to £43 million.

GVC further indicated that these projections encompass any potential government assistance and other retail cost reductions.

“The well-being, safety, and security of our employees and patrons are of the utmost importance to us,” GVC emphasized.

“We are adhering to government guidance in each operational region and are implementing contingency plans to minimize the impact on our operations.”

The Betting and Gaming Council had previously implored the government to exclude the closure of betting shops from its coronavirus measures, arguing that it could lead to widespread job losses in the sector.

The organization’s chief executive, Michael Dugher, penned a letter to Business Secretary Alok Sharma last month, urging him to prevent the closures, but to no avail as the government persists with its regional lockdown measures.

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