Pennsylvania has become the third state to again close its casino industry due to resurging COVID-19 infections.

In an announcement Thursday, Gov. Tom Wolf and the state’s health secretary said casinos and other businesses would close on Saturday. The shutdown will last through Jan. 4.

“It has become clear that we need to take further action to protect Pennsylvanians and stop the spread of COVID,” Wolf said. “Today I’m announcing additional, temporary mitigation measures.

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Pennsylvania joins both Michigan and Illinois with full casino closures. Michigan closed casinos on Nov. 18 in a move first expected to last three weeks; the casinos will now remain closed until Dec. 20. Illinois casinos closed indefinitely on Nov. 20.

Several additional states have restrictions on casino hours and capacity.

“While December is traditionally a somewhat softer seasonal month, the period between Christmas and New Year’s tends to drive the month and as such, the closure through this period is slightly more meaningful,” Deutsche Bank gaming analyst Carlo Santarelli told investors.

The City of Philadelphia ordered the Rivers Casino closed on Nov. 20 as part of the city’s efforts to slow the spreading coronavirus. Rivers, which is operated by Rush Street Gaming, is the only casino within city limits.

Now, other Philadelphia-area casinos, including Parx and Harrah’s Philadelphia, will close as well.

Boyd Gaming said it would comply with the order and close its Valley Forge Casino by 12:01 am Saturday. The closure will include all public operations, including the casino, restaurants, and hotel.

“We will not place any Valley Forge team members on furlough at this time,” Boyd Gaming spokesman David Strow said in an email. “Team members will continue to receive regular pay, including tips, as well as benefits through January 4.”

On March 12, Boyd was the first company in the casino industry to experience a government-ordered shutdown when the pandemic forced Wolf to order the closure of businesses in four suburban Philadelphia counties, including Montgomery County, home of the Valley Forge. The property reopened on June 26.

“As we noted with the closures in Illinois and Michigan, we think it is unrealistic to assume this is the last of the closures, especially with the light at the end of the tunnel identifiable with the vaccine in the first half of 2021,” Santarelli said.

Pennsylvania has 12 casinos and racinos and reported gaming revenues of $3.38 billion in 2019. The Philadelphia market alone ranked No. 7 among the gaming industry’s top 20 commercial markets, according to the American Gaming Association’s 2019 State of the States report.

Santarelli said the investment community has anticipated additional restrictions and closures.

“That said, when the narrative changed from cash burn and liquidity to margin improvements and sports betting, things changed for regional equities,” he said. “Accordingly, we are a bit more cautious of the potential for the currently constructive narrative to again shift back to cash burn, despite liquidity being less of an issue this time around.

Pennsylvania Governor Tom Wolf issued an order late Thursday ordering all casinos closed once again until 8:00 a.m. on Monday, Jan. 4, 2021.

The order goes into effect at 12:01 a.m. Saturday, Dec. 12.

Also ordered shut were all 40 truck stop video gaming terminallocations. They are shuttered on the same schedule as casinos.

For now, there does not appear to be a plan to shut down horse racing.

Rivers already closed due to orders from Philly Health Department

Rivers Casino Philadelphia already closed on Nov. 20 on orders from the City of Philadelphia.

All casinos were initially ordered closed in March due to the virus. They had a phased reopening after being closed for months.

Casinos newly reordered to close

The newly affected properties are:

• Harrah’s Philadelphia
• Hollywood Casino at Penn National Race Course
• Lady Luck Nemacolin
• Live! Casino Pittsburgh
• Meadows Casino and Racetrack
• Mohegan Sun Pocono
• Mount Airy Casino Resort
• Parx Casino
• Presque Isle Racetrack and Casino
• Rivers Pittsburgh
• Valley Forge Casino and Resort
• Wind Creek Bethlehem

Live! near Pittsburgh had just debuted, ordered closed

The new Live! Pittsburgh had just opened its doors on Nov. 24. A sister facility, Live! Casino Philadelphia, is under construction with no announced opening date beyond “no later than the end of the first quarter of 2021.”

Gaming officials aiding closure planning

The Pennsylvania Gaming Control Board announced Thursday that it is assisting in the shutdown procedures.

Executive Director Kevin O’Toole said public health and the safety of patrons, casino employees and others are of paramount importance. O’Toole said:

“The board is continuously monitoring developments and will update licensees and the public as frequently as possible with any new developments.”

The closures do not affect other forms of gaming regulated by the Gaming Control Board offered via the internet, including online casino games, sports betting and daily fantasy contests.

PA Casino response, messages to employees and patrons

Harrah’s Philadelphia put out a memo to team members on Thursday assuring them that they all will continue to earn pay and benefits through the closure period. Pay during the period is based on average wages over the previous eight weeks.

Frank Leone, COO and general manager of Mount Airy Casino Resort, said in a presser that reservations through Jan. 3 can be cancelled without penalty. Patrons can call (877) 682-4791 for additional information. He also said:

“Our hearts go out to those who have been affected by this pandemic. We look forward to welcoming everyone back to the property on January 4.”

PA horse tracks still running for now

According to the PA Department of Agriculture press secretary, Shannon Powers, tracks are currently not affected by the closure of casinos.

“Tracks open at this time of year are Parx, Harrah’s Philadelphia, Meadows and Penn National. The Mohegan Sun at Pocono and Presque Isle Downs are normally closed this time of year.”

Other activities ordered stopped or limited

Also, indoor dining will again be prohibited. Outdoor dining, takeout food service and takeout alcohol sales may continue.

Wolf ordered outdoor gatherings and events of more than 50 people to cease.

In-person businesses that serve the public may operate at 50% of maximum capacity — except if limited to a smaller capacity by existing orders.

Wolf, who himself tested positive for the virus but is asymptomatic, also ordered the closure of indoor operations at gyms and fitness facilities and in-person indoor businesses in the entertainment industry. That includes movie theaters, museums, bowling alleys and others.

Sports for K-12 students and in-person extracurricular school activities must cease, but extracurricular activities may continue virtually.

Spectators cannot attend college sports events. Wolf said the continuation of college sports might continue per federal and state health directives.

The new restrictions were announced the same day a vaccine was approved to immunize people against the virus, though the rollout is still to come.

Previous reopening procedures

COVID-19 Casino Reopening Protocols were part of the previous reopenings. They detailed minimum safety and health-related requirements that are mandatory before reopening.

The key points then were:

• Casinos can reopen at 50% capacity.
• Employees and guests must wear masks.
• There are markings on the floor to promote social distancing.
• Mandatory enhanced cleaning is required throughout the facility.

At first, poker rooms were not authorized to operate following the first shutdown due to players’ handling of cards and chips.

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But by mid-November, five of the nine live poker rooms in PA had reopened.