Casino table game supplier Galaxy Gaming has suspended billing any casinos that have closed due to the outbreak of the novel coronavirus disease (Covid-19).
The global pandemic has led to casino closures across the world as governments impose bans on large gatherings in order to limit its spread. Several casinos in the United States closed in the past week, including all casinos in New Jersey last night under orders from Governor Phil Murphy.
“The world has changed drastically in the past week and our customers appear to be among the hardest hit, with mandatory closures in several jurisdictions and more likely to come,” Todd Cravens, Galaxy’s president and chief executive said.
“These closures will put incredible burdens on our customers with respect to their own customers and employees and we don’t want to add to those burdens. We hope the crisis passes quickly and we look forward to serving our customers again on the other side of this.”
Harry Hagerty, Galaxy Gaming’s chief financial officer said the decreased revenue from suspended billing would not put its employees’ jobs at risk as it has the cash reserves to pay them.
“We have sufficient cash on hand to continue to pay our employees through this limited closure,” Hagerty continued. “At the same time, we will work with many of our vendors to defer payment until such time as our industry returns to more normal conditions and we will suspend all non-essential activities until then as well.”
Hagerty added that annual payments would be pro-rated based on the months in which the casino was open, while performance-based payments would be unchanged as they only accumulate when customers play the games.
Galaxy Gaming’s clients include Caesars Entertainment, which agreed a multi-year deal with the supplier in April 2019.
In addition to casino closures, the outbreak of the virus has led to a host of sporting events being suspended, which is set to hit the bottom line of betting operators.
Last month, Galaxy agreed a deal to purchase Progressive Games Partners (PGP) for $12.4m (£9.6m/€11.4m).