Borgata Hotel Casino, which is owned by MGM Resorts International, has decided to lay off about 2,295 of its employees at its South Jersey resort. This is due to the loss which the casino industry has suffered in the current COVID-19 pandemic situation.
Borgata Hotel Casino and the Layoff
The layoff will be effective from August 31, as per the separation letter from Bill Hornbuckle, MGM CEO and President.
According to MGM officials, around 3,100 staff are still employed at Borgata Hotel Casino. However, a total of eighteen thousand U.S. employees (including Borgata Hotel Casino employees) are laid-off by MGM.
In a statement, Bill mentioned that he fully understands the impact this lay off will have on these staff members and their families. He added that it is very painful for him to deliver such news.
MGM officials have mentioned that if the situation improves, restrictions go off, and the gambling industry bounces back, then these employees will be the first to get the job back.
In Atlantic City, nine casinos had to suspend their operation on March 16 and they resumed operations from July 2, that too, with only 25% capacity.
Online sports betting and gambling proved to be a lifeline for all the casinos during the three-month closure, but even then, many of the casinos suffered 3-digit losses. The gambling industry suffered a steep decline in profits, from last year’s figure of $335 million to this year’s $264 million, a significant drop.
This year sports betting did well, but the pandemic disrupted plans for most of the professional leagues, which has left sports betting also in the dark.