The Navajo Nation Council is discussing a $24 million Covid-19 aid package to help its four casinos that have sustained heavy losses from being closed and forced to lay off hundreds of employees.
Last week the Navajo Nation Gaming Enterprise, which operates the casinos, laid of 90 percent of its workforce, or about 900. The rest face furloughs the following week.
Interim CEO Brian Parrish said the enterprise is running out of cash reserves.
If the Navajo Nation Council does allocate money, it would take it from $632 million federal CARES Act funds it has received.
The nation operates three casinos near Flagstaff, Arizona and one in New Mexico—all closed since the middle of March. Despite the closures the enterprise has kept most of its 1,180 employees on paid administrative leave, which includes benefits.
Federal PPP loans helped for 10 weeks, which added up to about $11 million. But those funds have just about dried up.
If the tribe allocates some funds from its own Covid-19 aid that would enable the enterprise to return most of its employees to paid administrative leave. It recently extended all tribal government operations closures to August 16, including gaming operations.
Recently Navajo Nation Gaming Enterprise Board Chairman Quincy Natay issued a statement: “The financial strain on the Gaming Enterprise has been severe, but we continue to believe taking care of our employees must be our focus.” He added, “The pressures and worries from the pandemic are already affecting our people, we couldn’t add to their burden by instituting layoffs, unless there was no other option.”
The tribe has suffered a high degree of Covid-19 cases compared to the average. A total of 9,055 have been infected; with 6,677 recovered and 456 dead.
The number of cases indicate the tribe is “flattening” the curve, which only 15 new cases reported at last count.
This caused Navajo Nation President Jonathan Nez to declare, “It’s because of the Navajo people that our Nation is seeing a consistent flattening of the curve in terms of new Covid-19 cases. The people are listening to the health care experts when they are told to stay home, wear masks, social distance, wash hands, and avoid large gatherings. We only have 15 new cases reported today, but we have to remain diligent and keeping fighting the virus together.”
