The Nevada Gaming Commission in November approved the Eureka Casino in Mesquite’s plan to offer an employee stock ownership plan, which would serve as an employee retirement plan.
The casino has 550 workers, and the Lee family recently announced it would sell part ownership in the casino to its workers via employee shares, while Gregory Lee would remain its chairman and CEO, and Andre Carrier its president and COO.
Lee says the move allows the Eureka’s workers to continue building a retirement plan, but without having to take money out of their paychecks. Instead, they keep all of the money they earn, while also earning employee shares, which they can sell in their retirement years.
The move also gives Eureka casino workers a personal investments in the casino and ensuring it is run as efficiently as profitably as possible, while also improving the customer experience.
Although employees have part ownership of the casino, they do so via a trust, and a board of directors will continue making business decisions, while Lee and Carrier will continue in their executive roles with the same authority as when the Lee family had complete ownership.
The employee stock ownership plan also gives the casino more capital with which to make needed improvements and continue drawing good attendance numbers well into the future. The casino last underwent an expansion in 2007, and Lee said its tax bill has risen greatly since.
The new employee stock ownership program reduces the company’s tax liability, Lee said, and frees up more operating capital to help keep the casino fresh and competitive for tourists who don’t want to drive 90 miles further to the mega resorts on the Las Vegas Strip.
