Casino shutdown set to continue
Caesars Entertainment is furloughing about 90% of its 64,000 workers as a result of ongoing shutdowns. The company’s resorts and casinos across the United States have been temporarily shut down as they are considered non-essential businesses in the midst of the deadly coronavirus pandemic.
In a press release announcing that most employees would be furloughed, Caesars Entertainment CEO Tony Rodio outlined how the company is taking necessary steps to protect its financial position. The changes are also being made to ensure that Caesars will financially be able to reopen once the coronavirus pandemic comes to an end.
outlined how the company is taking necessary steps to protect its financial position
Furloughed employees will be paid as normal for the first two weeks. Thereafter, employees can then request paid leave. The company is also covering 100% of health insurance premiums for these employees through June 30, unless they can return to work earlier than this date.
Deadly impact of coronavirus
The coronavirus pandemic is worsening day by day in the United States. As of Friday, there were over 275,000 confirmed cases of coronavirus across the country.
In Las Vegas for example, Gov. Steve Sisolak has extended the shutdown period for casinos until the end of April. Naturally, this is having a significant impact on casino companies. All of the major companies have seen their share prices tank and many have been forced to furlough employees just like Caesars.
Other major casino companies, such as Las Vegas Sands and Wynn Resorts, have committed to paying their furloughed workers for the foreseeable future.
Turbulent times for Caesars
In June 2019, Eldorado Resorts announced its intention to acquire Caesars Entertainment in a deal worth more than $7bn. With the ongoing uncertainty concurring casino closures, many people doubt that this merger will go ahead.
The initial deadline has already passed without the necessary regulators giving their approval. This means that Eldorado has to pay $2.3m in ticking fees to Caesars. If the merger fails to go ahead, it would cost Eldorado Resorts $836.8m in penalties.
Caesars was hit with a £13m ($16m) fine this week by the UK Gambling Commission (UKGC)
Caesars was hit with a £13m ($16m) fine this week by the UK Gambling Commission (UKGC) due to social responsibility and anti-money laundering failures. This largest penalty dished out by the UKGC to date.
Caesars Entertainment is a Nevada-based company. It owns over 30 properties across the globe, as well as the Horseshoe, Harrah’s, and Caesars brands.