The five commercial casinos in upstate New York, which have been closed since March due to the ongoing Covid-19 pandemic, are now warning as many as 5,000 employees could face permanent layoffs if Governor Andrew Cuomo does not permit them to reopen.
According to a report on the NYUpstate news site, most of the employees are currently furloughed, but continued closure is likely to force layoffs by the end of September if the non-Indian casinos remain closed.
“For nearly four months, we have been doing everything in our power to responsibly reopen—prioritizing the safety of our team members and guests,” Lance Young, executive vice president of del Lago Resort & Casino near Waterloo said in a statement reported by NYUpstate.
“Despite our very best efforts, including the development of comprehensive plans and procedures that outline how we intend to keep everyone as safe as possible in accordance with state mandates and CDC guidelines, we have not yet received information regarding when or how we will be permitted to reopen.”
The casinos for which employees are facing possible layoffs include the del Lago, Vernon Downs racino, Tioga Downs near Binghamton, Resorts World Catskills and Rivers Casino & Resort Schenectady. All have issued or are preparing notices to employees und the federal Worker Adjustment and Retraining Notification (WARN) law.
“Part of my decision to open casinos in upstate New York was inspired by my commitment to supporting this community and being part of a positive economic driver for the area,” Jeff Gural, owner of Vernon Down and Tioga Downs, said in a statement.
“My primary concern is for my employees, and it pains me to send them this notice when I know they have already been out of work for some time and are relying on benefits to support their families. I fully understand the necessity to keep both our staff and our guests healthy by closing for now, but I am eagerly anticipating safely getting everyone back to work soon.”
American Racing and Entertainment recently announced it has sent federal WARN notices to all of its 900-plus employees at its two casinos in southern New York: Tioga Downs Casino Resort in Nichols and Vernon Downs Casino Hotel in Vernon. The notices informed the employees they will be terminated at the end of September. Both venues closed in mid-March and will remain closed for now due to the Covid-19 pandemic, said American Racing and Entertainment Chairman Jeff Gural.
Currently furloughed employees are managing with federal benefits such as the CARES Act but these benefits will end on July 31, Gural said. He stated the pandemic has been “a financial disaster” for the company but he’s concerned about “the safety of our customers who we know are traveling elsewhere. We know for a fact that our customers are not sitting home waiting for us to reopen. They are simply getting in their cars and driving to casinos in areas where the transmission rate is far higher,” Gural noted.
He said, “The closest casino to Tioga Downs is in Wilkes-Barre, Pennsylvania, where they have a meatpacking plant. Another option is Atlantic City, where we know the number of people testing positive is higher than in the Southern Tier. These casinos allow far more customers, and unlike casinos upstate, do not have representatives of the Gaming Commission on the floor to monitor the implementation of the rules and regulations that have been set. The last thing we want is for these people to bring the virus back to the Southern Tier from outside the region.”
Gural added, “My primary concern is for my employees, and it pains me to send them this notice when I know they have already been out of work for some time and are relying on benefits to support their families. I fully understand the necessity to keep both our staff and our guests healthy by closing for now, but I am eagerly anticipating safely getting everyone back to work soon.”
Gural said Tioga Downs and Vernon Downs are upgrading their HVAC systems. Also, “We are additionally arranging for Covid-19 antibody testing for all employees prior to coming back to work to prevent the spread of the virus.” When the casinos open, guests will be asked if they’ve recently visited or are coming from a high-risk state or local area where the virus is spiking; these guests will not be allowed entry, Gural said.
Meanwhile, the company has opened its casinos in Upstate New York. Gural said he was “inspired by my commitment to supporting this community and being part of a positive economic driver for the area.”
