If July was a winning month for casino operators then it seems that August was a losing month for casino employees.

Michigan in the USA has a budget deficit going into the new fiscal year that starts October 1st. To bring in more revenues they decided to increase the taxation on casinos in the state from September 1st. The new level is 24%, an increase of 6%.

Citing the additional tax costs, Greektown Casino did away with 182 employee positions last month and now MGM Grand Detroit Casino is to lay off 150 workers for the same reason. MotorCity has yet to decide whether it too will be streamlining staffing levels.

The growth of casino corporate giants is also a worrying prospect for casino employees who work in Nevada. The state has a fire 'at will' provision in its employment laws, thereby making it impossible for a casino employee to contest dismissal as no grounds are given. Not so long ago they would have just changed casino but nowadays there are fewer employers. Tony Badillo, President of the International Union of Gaming Employees is reported to be fighting this provision.

The incredible growth of slot machine gambling has frequently been at the expense of the tables operations. The traditional boxman at the craps table has already been eliminated at resorts such as MGM, Bally's and Las Vegas Hilton. Numbers of staff needed to run the slot machine area in a casino are far fewer than those needed to man the tables, and the major profits for a company come from the machines.

It is reported that today could see a rally by casino workers in Atlantic City. Their contracts expired at midnight last Tuesday but they have been working since then. The rally is to try to pressure the casinos to settle a new contract and strike action is a possibility this weekend. The walkout may occur if casinos fail to meet demands. Such action would affect 11 of the 12 casinos in Atlantic City. The Borgata Hotel Casino & Spa negotiated their deal with workers when they opened last year.

In a competitive climate it is natural that businesses seek every means to cut costs but casinos must maintain staff numbers at comfortable levels for the gaming public. With so much competition for their dollars these days, including Online gambling, casino operators should beware. It has been said on countless occasions that casinos are a service industry, with nothing to sell but service.

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