The economic downturn due to COVID-19 is forcing a number of business changes among Las Vegas gaming companies.
On Friday, Station Casinos, which operates 18 properties around Las Vegas and Henderson announced the company would layoff an unspecified number of employees until business resumes.
THIS TIME FOR STATION CASINOS..THE COMPANY ANNOUNCING NEWLAYOFFS..AND CERTAIN PROPERTIES..INCLUDING THE PALMS MAY NOTREOPEN..EVEN WHEN IT'S SAFE TO DO SO..THANKS FOR JOINING US.I'M TODD QUINONES..AND... I'M TRICIA KEAN..13 INVESTIGATES REPORTER....JOE BARTELS IS LIVE....AT RED ROCK CASINO..AND JOE..THE COMPANY SAYS....BUSINESS WILL LOOK.....A LOT DIFFERENT...YEA THEY WILL TAKE A VERY HARDLOOK AT THE NUMBERS..WE KNOW..RED ROCK..ONE OF THEIR VERY POPULARCASINOS.WILL BE AMONG THE FIRST TOREOPEN WHEN IT'S SAFE TO DOSO..BUT STAFFING WILL BE REDUCED..WE ALSO LEARNED..FOR ONE CASINO OPERATOR..HE SEES THE DOWNTURN AS ANOPPORTUNITY.IT'S BLACK FRIDAY..FOR POTENTIALLY HUNDREDS OFSTATION CASINOS EMPLOYEES..THE COMPANY..HAS ANNOUNCED THE COVIDCRISIS..HAS LED TO SOME VERY TOUGHDECISIONS..CLOSING GRAPHIC INDEFINITELY.FOUR OF THE THEIR PROPERTIES..INCLUDING PALMS...FIESTA HENDERSON..FIESTA RANCHO..AND TEXAS STATION..WILL REMAIN CLOSED...EVEN AFTER AUTHORITIES GIVE THEGREEN LIGHT..TO OPEN BACK UP..THEY WILL OPEN..EVENTUALLY..BASED ON BUSINESS DEMAND.SOT STEVE BUDIN/KTNV FINANCIALANALYST :45 IT COMES AS NOSURPRISE, UNCERTAINTY HOWQUICKLY AND HOW SUBSTANTIALLYBUSINESS WILL REBOUND ISANYBODY'S GUESS." 13 ACTION NEWS FINANCIALANALYST STEVE BUDIN..SAYS...WHEN BUSINESS IS THIS BAD..OR IN THIS CASE..NON-EXISTENT THE BELTTIGHTENING GETS EVEN TIGHTER..SOT STEVE BUDIN/KTNV FINANCIALANALYST STATION CASINOS OPENINGGRAPHIC 1:43 "I WOULD GUESSTHAT THEY DID AN INTERNALANALYSIS OF WHICH PROPERTIESGENERATES WHAT TYPE OF CASHFLOW WHICH PROPERTIES HAVE THEMOST OVERHEAD AND THEN THEYMADE THOSE DECISIONSACCORDINGLY." BUT THERE WILL BE SEVERALSTATION PROPERTIES THAT WILLOPEN WHEN IT'S SAFE...RED ROCK...GREEN VALLEY RANCH...PALACE STATION..AND WILDFIRE LOCATIONS..AMONG OTHERS.THE COMPANY RELEASED ASTATEMENT WHICH READS INPART...STATEMENT GRAPHIC FROM STATIONCASINOS "WE RECOGNIZE HOWDIFFICULT THIS IS FOR AFFECTEDTEAM MEMBERS AND THEIR FAMILIESAND WE THANK EACH OF YOU FORYOUR DEDICATION AND FOR YOURUNDERSTANDING AS WE TAKE THESEDIFFICULT BUT NECESSARY STEPSTO NAVIGATE THIS CRISIS."THE COMPANY SAYS..THE UNSPECIFIED NUMBER OF LAIDOFF EMPLOYEES..WILL BE PAID UNTIL MAY 16..HEALTH CARE COVERAGE..PRIOVIDED UNTIL THE END OFSEPTEMBER..UNAFFECTED FULL TIMEEMPLOYEES...WILL CONTINUE TO BE PAID...WITH BENEFITS THROUGH THE ENDOF MAY..THE CULINARY UNION TELLS 13INVESTIGATES...STATMENT FROM THE CULINARYUNION "THE CULINARY ANDBARTENDERS UNIONS WILL FIGHTTO ENSURE ALL WORKERS ARERETAINED AND DO NOT HAVE TOREAPPLY FOR THEIR JOBS, THATTHEIR SENIORITY REMAINS INTACT,AND THAT ALL WORKERS AREOFFERED EXTENDED RECALL RIGHTSWHEN THE CASINOS REOPEN." SOT STEVE BUDIN/KTNVFINANCIAL ANALYST 1:58"CERTAINLY IT'S REFLECTIVE OFTHE ECONOMY WE ARE NOT GETTINGVISITORS AND LOCALS WHICHSTATIONS TENDS TO CATER TOLOCALS ARE STAYING HOME." MGM ALSO REVEALED..SEVERAL HIGH RANKINGEXECUTIVES..AT THE MAJOR STRIP PROPERTIESHAVE BEEN SHUFFELED AROUND..M-G-M WOULD NOT COMMENT IF ANYEXECUTIVES WERE CUT... FRIDAY.THE DOWNTURN IS GOOD NEWS FORSOME..BILLIONAIRE CASINO MOGEL...PHIL RUFFIN..TELLS FORBES..HE HAS ENOUGH CASH ON HAND..TO KEEP HIS CASINOS..WHICH INCLUDES TREASUREISLAND..
AND CIRCUS CIRUS..CLOSED FOR 20 YEARS!
HEBOUGHT T-I FOR HALF OF WHATIT'S CURRENTLY WORTH DURINGTHE FINANCIAL CRASH OF 2008...AND SEES FINANCIAL TROUBLES FORSOME CASINO OPERATORS..AS AN OPPORTUNITY TO EXPAND.RUFFIN HAS FACED CRITICISM.44 HUNDRED OF HIS EMPLOYEESHAVE BEEN FURLOUGHED..WITHOUT PAY...BUT SOME GOOD NEWS..THE SAHARA HAS ANNOUNCED ITWILL BE ACCEPTING RESERVATIONSFOR MAY 22..AND BOYD GAMING WHICH OPERATES10 PROPERTIES IN LAS VEGAS..SAYS THEY ARE TARGETING FOR AREOPENING FOR EITHER THE LATERPART OF MAY..AND MOST IF NOT ALL WILL BEOPEN BY JUNE.REPORTING LIVE JOE BARTELS 13ACTION NEWS.THE WESTGATE IS PLANNING