Galaxy Gaming has announced it will suspend billing its casino clients that have their facilities closed down due to the continuing effort to clamp down on the spread of the coronavirus by embracing social distance and avoiding mass gatherings of people.
Table Supplier Will Not Press Clients For Payments
The leading independent gaming tables provider, Galaxy Gaming, expressed its concerns for the financial burden placed on its casino customers in a period of time when there would be no revenue for them, and showed its support by suspending their billing.
“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. 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.”Todd Cravens, President and CEO, Galaxy Gaming
The global spread of the novel coronavirus has challenged the leisure and entertainment industry globally, and official authorities responded by restrictions on large gatherings of people, which led to many casinos around the world closing temporarily, willfully joining the effort to halt the outbreak. In some US states such as New Jersey all land-based casinos closed, while in others such as Pennsylvania 6 out of 12 brick-and-mortar facilities shut doors.
Galaxy Will Use Own Reserves
Galaxy Gaming embodied a proactive approach to the needs of its casino clients and the industry as a whole, during times when casinos will be cash-strapped, and further explained that the decreased revenue would not jeopardize its own employees as the company had significant cash reserves to rely on.
Regarding annual payments, Galaxy’s CFO, Harry Hagerty, confirmed a pro-rating of the Licensing Recurring arrangements for the portion of each month’s billing during which the casino was closed will occur. As for the Performance Recurring billing, those would not be affected since they are based on actual monthly usage.
The producer of gaming tables for the casino industry expressed its intent to put extra effort towards negotiating with its vendors to defer payments for the duration of this closure, while suspending all non-essential activities of its own until the industry returns to normal working conditions.
Galaxy Gaming casino clients include some of the biggest land-based casino operators such as Caesars Entertainment, after both companies entered into a multi-year deal in 2019, and the attitude the supplier shows towards its main clients, gives hopes that by mobilizing effort and resources, even the worst crisis can be overcome.