More Layoffs Announced by Penn National Gaming’s M Resort

A total of 410 employees of M Resort Spa Casino will be permanently laid off. The property owned by Penn National pointed out the COVID-19 impact as a main reason for the redundancies.

Employee Redundancies at M Resort Spa Casino

The M Resort Spa Casino in Las Vegas owned by Penn National has announced layoffs of some 58 employees. Previously, the company has said it will permanently layoff 352 employees. With the newly added 58, this makes a total of 410 employee redundancies. The Worker Adjustment and Retraining Notification Act (WARN Act) letter was sent to the Nevada Department of Employment, Training and Rehabilitation by the company on August 6. On August 15, the employees affected were notified. According to the WARN act notice, the redundancies will be permanent, but the facility will remain open.

As a reason for the layoffs, M Resort outlined “the unfortunate result of COVID-19 related business circumstances that were sudden, dramatic and beyond our control“. “We simply could not foresee, that the initial closures of our properties, that were issued by one or two states for a limited period of time, ultimately spread throughout all the states in which we operate and eventually be extended, interrupting almost all business and travel temporarily,” added the company.

Furthermore, M Resort noted that the drags on the business will likely continue for the foreseeable future. The company also outlined that they could not foresee when the properties would be allowed to reopen and how the restrictive operating conditions would impact the business. In conclusion, the operator noted that the entire industry is facing difficulties and deemed the circumstances as unfortunate.

The Gaming Industry in Las Vegas Faces a Difficult Recovery

The state-wide shutdown due to the COVID-19 pandemic impacted multiple industries. Shut back in March, the operators in Nevada were allowed to reopen doors in June. Since then, many of the operators in Las Vegas began to gradually reopen their properties. Although the casinos were allowed to resume business, the state introduced strict health and safety guidelines.

Those guidelines were aiming at reducing further the spread of the novel coronavirus (COVID-19). Among the guidelines which operators have to follow we see a reduced capacity of 50%. Moreover, the operators had to install plexiglass spacers and ensure that six feet of distance is available between patrons.

Hand sanitizing stations as well as enhanced cleaning protocols were also introduced at each venue. Some industry giants took a precautionary step and announced post-COVID-19 safety operation plans. With that in mind, one such venue that will reopen doors following a previously laid out plan is the Mirage by MGM. The property has set a planned date to reopen on August 27.

But the reduced capacity of the casinos combined with decrease in travelling undoubtedly means that the gaming industry in Las Vegas will face difficult recovery. A recent report by the Las Vegas Convention and Visitors Authority marked a 70.5% decline in visitors when comparing year-on-year results for the month of June.