For employees of Atlantic City’s casino industry, March went out like a lion—a roaring lion with layoff notices dangling from its teeth.
Borgata sent notices out on March 17. Ocean Casino Resort furloughed employees on March 27. Hard Rock and Resorts did likewise on March 30, and a day later, layoffs began at Caesars Entertainment properties.
It was a grim April Fool’s surprise, thanks to the coronavirus.
Of course, it wasn’t really much of a surprise. Following the state closure of most businesses on March 16, casinos in the city agreed to pay most of its employees for two weeks. At that point, workers anticipated temporary terminations, a next step that would allow them to collect unemployment benefits.
The pandemic has threatened the health, safety and economic stability of New Jersey’s gaming and tourism industry, said Steve Callender, president of the Casino Association of New Jersey (CANJ) in a statement issued to GGB News. The local casino industry hosts more than 25 million annual visitors, and in 2019 paid nearly $500 million in local, county and state taxes. The American Gaming Association indicates the industry’s total impact across New Jersey amounts to $6.45 billion a year.
“We are especially concerned as we recognize there may be a long road ahead for all of us,” Callender said. “The New Jersey casino industry has directly employed over 26,000 men and women. These are unprecedented times, and our properties have had to make difficult decisions to furlough workers.”
At Hard Rock, qualified workers may use accrued paid time off plus an additional two weeks of borrowed time off, which could keep some staffers going through much of April before they have to file for unemployment.
“Team members furloughed and applying for unemployment will be able to take advantage of the new stimulus package until our property re-opens,” Hard Rock Atlantic City President Joe Lupo told the Press of Atlantic City.
Hard Rock not only paid workers for two weeks, but also compensated for loss of tips among tipped employees. In addition, the resort paid for health care benefits through April and expect to extend that coverage.
Meanwhile, the CANJ will adhere to the guidelines provided by the Centers for Disease Control and Prevention as well as local and state health authorities, said Callender.
“These guidelines will ensure our properties are ready to re-open when the mandate is lifted. We are grateful to Governor Phil Murphy and his administration for allowing the continuation of online gaming, so the industry may generate tax revenue for the state and the important programs these taxes support. We will be here for workers as much as possible as we get through this crisis together. We understand our role in safeguarding the health, safety, and economic success of the communities which we call home.”
The unemployment numbers show how the runaway virus has hurt the once buoyant economy. According to figures, some 155,000 people in New Jersey filed for claims in the week the layoffs were announced, 16 times the number who filed a week earlier.
The timing of the recovery may depend in part on relief from the government. The recent passage of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act will ease some of the pain. AGA Chief Executive Bill Miller called it “the first step to preserve the gaming industry’s ability to continue to serve as a valuable job creator and community partner.”
Most relief for businesses will come in the form of loans, some transferable to grants and tax relief. Another $250 billion in direct assistance will be allocated to states to maintain unemployment benefits for millions of jobless workers.
Casino companies can also apply for portions of the $367 billion in loans available to affected small businesses, while larger operators may tap into another $454 billion in loans backed by the feds. They’ll also be able to seek disaster assistance loans. It’s a payback for an industry that was frozen out of tax breaks extended to other businesses after Hurricane Katrina.
Despite the angst and uproar, some Atlantic City casino executives are choosing optimism. Terry Glebocki, CEO of Ocean Casino Resort, said in a statement, “We are looking forward to the day when Ocean Casino Resort can re-open and welcome back our team members and guests.”
Billboards on the now lightly traveled Atlantic City Expressway convey similar sentiments. Several from Borgata carry the message, “We look forward to welcoming you back soon.”
On Saturday, March 28—a day most AC casinos would be overflowing with gamblers, clubbers, sports fans and other revelers—Lupo tweeted, “Never has a weekend been more like a weekday.”
He added, “Stay safe, stay healthy, God bless your family and loved ones, and let’s get through this.”
