The Navajo Gaming Enterprise has run out reserves and began layoffs of 1,110 workers on January 1.
The action was announced on December 29 to the Navajo Nation Council by Navajo Gaming’s Interim Director Brian Parrish, after the gaming board passed a resolution earlier in the day.
Another 165 employees will continue on the payroll but with a 20 percent salary reduction. Noting that 97 staff members had resigned, Parrish said, “We believe this layoff will intensify the fears and lead to increased resignation due to the fact that the enterprise may not be able to get funding and recover from this extended closure.”
The nation’s casinos have been closed since March due to the pandemic and restrictions imposed by tribal health officials.
In December the council passed a resolution to reopen the casinos, but the Nation President Jonathan Nez vetoed it, stating, “We cannot put a price tag on the health, safety, and lives of our Navajo people. Revenues do not outweigh the precious lives of our elders, children, and gaming employees.”
Covid cases are raging through the Navajo population.
The Nation has invested $275 million in gaming and gotten $210 back so far. With reserves exhausted, Parrish favors seeking a bridge loan to fund the enterprise until its casinos can open up again.
He said, “If we were able to get additional CARES funding that would be ideal. Or some other grant from the Nation. A loan is going to be a challenge because the enterprise will be open to a limited capacity and having to repay a loan, it will put that much more pressure on the enterprise to recover more quickly.”
PPP funding is not an option since casinos are not permitted to apply.
