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Andrew Yang is a famous entrepreneur, and you may have heard about him as he was one of the people running to be a presidential candidate in front of the Democratic Party. Even though Joe Biden was chosen instead of him, Yang didn’t despair and immediately returned to his other duties as an entrepreneur. He wasn’t out of politics entirely, though, as he is now running to become the next mayor of New York City.
The crypto enthusiast has been already discussed as one of the potential candidates for becoming a mayor, and he is working hard on getting more support from the residents of the Big Apple.
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Yang has some ideas that some New Yorkers would call far-fetched, but he is really serious about them. The one that made many gambling industry professionals interested involves a casino. Namely, Andrew Yang wants to build a casino located on Governors Island, which is part of the New York Harbor.
The island is around 172 acres of land, and Yang believes he could turn it into one of the major tax sources. It would be a cash milking cow for New York City, struggling financially due to the Covid-19 outbreak. Yang has been visiting plenty of local shows, including the popular The Breakfast Club, where he stated that the casino on Governors Island would generate so much money “it would be bananas.”
Truth be told, whenever someone mentions the possibility of making a lot of money, many heads started turning. However, building a casino in one of New York’s islands will require much more work than just using bananas for comparisons.
In other words, there’s plenty of work to be done to make one such idea come to life. It’s definitely not an easy process.
The Obstacles Along the Way
The first major obstacle to building a casino is that the island doesn’t have much commercial activity. It’s mainly perceived as a state park, and it has one national monument.
In fact, there are just a couple of places to eat on the island, and that’s pretty much everything. With some of them being very influential, many New York residents want to leave the island just the way it is, as a quiet getaway.
Another reason why building a casino would be difficult is that everyone would be required to take a ferry trip to get to the casino. Many casino-goers usually like their access to be easy and quick.
There are legal obstacles in the way too. Namely, the federal government signed a pact with New York City, which prohibits building any gambling properties on the island.
Finally, besides Central Park, the island is the only big green place where New Yorkers can go to when they want to escape the hustle and bustle of city life. Building a casino there would limit the options to just Central Park.
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MGM Resorts is a popular casino operator with properties in Las Vegas. Like many other land-based casino operators, it was heavily hit by the ongoing Covid-19 pandemic, as many casinos throughout Nevada had to shut their doors or operate at limited capacity.
MGM had to furlough more staff from its resorts in the Entertainment Capital of the World, making Las Vegas a city with a nation-high unemployment rate.
According to Reno Gazette-Journal, [] 140 managers at MGM’s Las Vegas properties will have to be furloughed starting Monday, January 11.
The spokesperson for MGM, Brian Ahern, stated that these “temporary reductions” were a result of projections that showed low business volume throughout the first part of 2021 due to the pandemic.
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This is not the first time that MGM had to furlough its workers from the start of the pandemic. The first massive furloughs took part in spring 2020 when casinos in Nevada had to shut their doors completely for months. Back then, the operator had to furlough more than 18,000 of its staff, which made a total of 25% of its entire workforce.
But MGM wasn’t the only operator who had to make such cuts. In fact, many other gambling & entertainment businesses had to furlough their workers earlier this week due to the strict Covid-19 restrictions.
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Unemployment Rate Soars in Vegas
The Bureau of Labor Statistics issued a report in November, which shows that the current unemployment rate in Las Vegas was 11.5%. Even though it’s not at the top of the list of all cities (El Centro, California has a reported unemployment rate of 16.4%), it’s still topping the metropolitan area list, where the population exceeds one million. The second place was occupied by New Orleans, which has an unemployment rate of 9.8%.
Vegas also topped the list of the year-on-year increase in the unemployment rate, as it gained 7.9 points from November 2019.
At this moment, it seems that the unemployment rate will only further increase in Sin City, and it will remain that way as long as casinos operate at a limited capacity.
The Las Vegas Convention and Visitors Authority also released a report in November stating that approximately 1.51 million people visited Vegas during the 11th month of the year. This was a huge decrease compared to November 2019 — a total of 56.8%. Moreover, November was also down by 18.4% compared to October.
Hotel occupancy in November was 39.3%, which is 88.2% less compared to November 2019 and 7.6% less compared to October 2020. Midweek occupancy was only 32.4%, which is another huge decrease, or 84.8% less than in November 2019. This remained relatively low, even though the overall room rates were down by approximately 30%.
According to operators, most of the traffic comes from Nevada’s neighboring states, and most visitors come via drive-in traffic in contrast to millions of visitors that used to fly to Las Vegas every month for leisure or getaways before the pandemic.
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