Multiple Furloughs and Employees Safety Schemes Kick in the U.S. as COVID-19 Spreads

The coronavirus has been a reason for concern to many in the United States and not least the casino industry. With all casino venues across the country – both commercial and tribal – shut-down completely, as many as 1.8 million workers in the sector are at risk. Many workers have been furloughed, but not all is gloom as companies such as Wynn Resorts and Las Vegas Sands have decided to keep their employees for two months on the payroll covering base salaries, tips and benefits. In the meantime, the American Gaming Association (AGA) has riled against a new Paycheck Protection Program (PPP) that could leave gaming companies out of a $2.2 trillion emergency economic package.

New Jersey Drops 16,000 Employees as Pressure on the Gaming Sector Intensifies

Atlantic City, New Jersey was among the first to feel massive lay-offs, as 16,000 employees have been furloughed, The Press of Atlantic City has revealed in a report last weekend. Hard Rock Hotel and Casino and Ocean Resort Casino had to let go the most employees.

Where possible, casino giants have tried to make amendments. Hard Rock workers for example were allowed to take their paid leaves as well as 80 additional hours earned over the years of working at the venue.

Terry Glebocki, CEO at Ocean Casino, expressed hopes that by temporary laying off employees, affected workers would be able to apply for unemployment compensation. More properties have been affected by the move, including Caesars Entertainment, Resorts Casino, Borgata Hotel Casino & Spa and MGM Resorts International.

Each of these properties is facing difficult decisions ahead occasioned by the complete shut-down of the gambling industry.

Gaming Could be Left Out of the Paycheck Protection Program

American Gaming Association (AGA) CEO Bill Miller has warned the US Small Business Administration (SBA) to reconsider a package of measures known as Paycheck Protection Program that is designed to allow companies employing more than 500 people to apply for a $10 million relief package to help cushion the repercussions of the coronavirus pandemic.

Yet, companies that generate over one-third of their revenue through gambling might not be eligible to this relief package. Miller described the package as discriminatory as it specifically left out one of the industries that was the most affected by the pandemic and he further stressed that gambling was employing 1.8 million people in the United States.

His appeal falling on deaf years, Miller addressed a letter to US President Donald Trump, garnering the signatures of 16 Congressmen from both political factions and asking POTUS to act in favor of protecting the industry.

Colorado Governor Ned Lamont Says No to Tribal Gambling Online

Faced with mounting pressure, the gambling industry in the United States has been trying to adapt. Connecticut tribal operators Foxwoods Resort Casino and Mohegan Sun have requested from CT Gov. Ned Lamont to endorse a new bill that would allow them to move their activities online immediately.

In their argumentation, the tribes stressed the economic importance of their activities, but Gov. Lamont argued against the suggestion that it would breach all legislative procedure to just go-ahead online gambling without following due process.

This has put the tribes and the governor at daggers drawn. Even before the COVID-19 struck, Lamont had been pushing for sports betting conditions that expunge any protectionism from the state, i.e. that tribes would not have any exclusivity over the vertical and have to compete against established commercial brands.

Wind Creek Bethlehem Not Giving Up on Employees

Wind Creek Bethlehem will not give up on its employees and keep them through May 31, making for one of the boldest moves in the iGaming sector. This is what Wind Creek Hospitality casino owner Julia Corwin said on Wednesday, reaffirming the company’s determination to guarantee the well-being of the 2,500 employees that it presently employees on its sight in Pennsylvania.

Pennsylvania is one of the first places to be hit by the coronavirus as well and Wind Creek in particular, reported infected staff members, which has prompted even quicker reaction time on the part of the upper management. Yet, the company is not alone in doing “the right thing,” as casino mogul Sheldon Adelson said when he announced that he would keep his own people enrolled for at least another month to ride the industry through.

Both Julia Corwin and Sheldon Adelson deserve praise as they have addressed a difficult situation in a way that has sought to protect employees from harm. However, unless the industry returns by early June, the majority of gambling companies would have no choice but to suspend payments completely.

When the Grace Period is Over: Eldorado Furloughing Employees

After supporting employees for a month, Eldorado Resorts will have to take the next step in its plan to contain the COVID-19-induced economic slowdown – furloughing employees. Starting on April 11, all employees will be furloughed with the expected period of the measure to last less than three months, General Manager Tracy Mimno said on April 7.

All 23 properties owned by the company will issue separate notes to employees and help address the situation on case-per-case basis. 

UFC 249 Confirmed by Dana White and Then Cancelled Hours After

Outside the casino industry, the world of sports has been looking forward to UFC 249 on April 18, the biggest fight ticket this year, but the event was finally suspended on Thursday, after Dana White – who previously confirmed that UFC would happen at all costs – had to make a complete U-turn after ESPN – the broadcaster backing the organization – said that it would be better to not go ahead with the fight given circumstances.

White, who is the UFC president, said that his fighters had nothing to worry on the financial end and that it would all be taken care of. In the meantime, the UFC will be preparing the so-called Fight Island initiative where fighters can go and train for upcoming matches while still having time to rest and recuperate.