Falls in gambling spend cause employment losses

Tribal casinos cut jobs

Casinos in Atlantic City reportedly cut nearly 1,000 jobs last month, bringing casino employment numbers below 40,000 for the first time, and well below the peak figure of 51,560 in July 1997. Over the last four months alone Atlantic City has lost 3,000 casino jobs and it is not only commercial casinos that are affected by the economic downturn. Tribal casinos in several places are also starting to cut jobs and look for ways to counteract lower returns.

As revenues continue to slide at both Mohegan Sun and Foxwoods in Connecticut, the tribal casinos are seeking to extend drinking hours, claiming that they would then be more competitive with the Atlantic City casinos. Under their tribal compacts the casinos are required to abide by Connecticut liquor laws, which means no alcohol may be served on gambling floors after 1am weeknights and 2am weekends, and results in a fall-off in gaming.

In August Pechanga Casino laid off 360 workers as revenues slowed at California’s 60 tribal casinos. In November the Pauma Yuima Band of Mission Indians announced it would be cutting an unspecified number of jobs at Casino Pauma. This week Black Gaming announced plans to suspend casino operations at one of its Mesquite resorts in Nevada and lay off 500 casino workers on Friday. The company says this is a temporary measure at the Oasis Resort Casino Golf & Spa and other facilities at the same location will remain open.

Seneca Gaming Corporation also has announced it is cutting staff numbers. The jobs of 210 employees will go at casinos in Buffalo, Niagara Falls and Salamanca. The company is calling for a freeze in salaries for employees earning over US$70,000, the suspension of yearly bonuses, and a reduction in salaries for senior management and those on the board of directors. (E-12.03.08)

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