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Feb. 15, 2008
Copyright © Las Vegas Review-Journal

LAYOFFS, FEWER HOURS: Slowdown lands on gaming

Company officials say LV not immune to economic climate

By ARNOLD M. KNIGHTLY
REVIEW-JOURNAL

Dane Boling, left, looks at job listings Thursday at Nevada Job Connect.
Photo by John Locher

The economic slowdown that has affected other job sectors throughout the past year has found its way to the gaming industry.

Large Strip companies and local gaming operators throughout Clark County have begun taking steps to trim hours and payrolls wherever possible because of a slowdown in business, company officials acknowledged Thursday.

"The notion that Las Vegas is immune from these downturns in the economy is completely false," MGM Mirage Senior Vice President Alan Feldman said. "We may be better able to withstand it than other marketplaces. Through the years we've proven that we are, but we're not immune from it."

The gaming companies will not say exactly how many people have been affected by layoffs and cuts in hours, although they have acknowledged some of the cutbacks.

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    • Some 150 people at MGM Mirage's Circus Circus property have "been affected," according to the company.

    A source familiar with the property, however, said there have been other layoffs in housekeeping, and among casino dealers, cashiers and other support-type positions.

    "Hopefully, this is going to prove to be short-lived," Feldman said. "As a community, we may have some staff adjustments."

    Culinary Local 226, which represents nearly 60,000 Strip and downtown hotel and restaurant service employees, such as bartenders, cocktail servers, waiters, housekeepers and maids, is downplaying the layoffs and reductions as part of a seasonal industry cycle, at least so far.

    "It's the time when there are certainly a lot of people that are going on layoff status right now," union spokeswoman Pilar Weiss said. "Ask us in two weeks and we might have a very different opinion."

    She added it's hard to gauge the long-term effects "when you're right in the middle of the layoff period. If things don't pick up the way they are supposed to and if jobs don't get brought back on as permanent, then we may have a very different conversation."

    Many casino and hotel workers, however, believe there is more to it than seasonal layoffs.

    A bellman at Station Casinos' Green Valley Ranch Resort said managers at the hotel-casino have had a series of department meetings over the past week informing staff about layoffs and reductions in hours. More meetings are scheduled for today

    "They said things have been slow, and that the moves are companywide," said the bellman, who requested that his name be withheld because he still works for the company.

    In his department alone, five of the 18 full-time positions were moved to on-call status, he said. Another five bell workers who were already working on an on-call basis were told "we're not letting you go, but you won't be scheduled until further notice," the bellman said.

    "Obviously, the local economy has softened, and the gaming industry isn't immune to the economic conditions," Station Casinos spokeswoman Lori Nelson said. "It's incumbent upon us to run our business the most efficient way possible. It is also our responsibility to right-size our operations to the current economic conditions. Unfortunately, that includes some layoffs."

    There have also been layoffs and hour reductions in other departments at Green Valley Ranch Resort including internal maintenance, banquet service, food and beverage, and security, the bellman said.

    Workers at other Station Casinos properties including Texas Station, Boulder Station and Sunset Station, have similar stories of layoffs and cuts.

    "I have been in the industry for more than a decade. I have never been party to a layoff until now," said a competing locals casino department manager with experience at various companies.

    The full impact of the slowing economy on the gaming industry will be more evident as state employment numbers are released during the next few months.

    Also, first-quarter occupancy and revenue numbers for the hotel-casinos will be reported in May and June and will offer more details.

    Keith Schwer, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas, believes the industry is currently treading water.

    "We're just hitting a lot of headwinds trying to maintain the same elevation," Schwer said.

    Overall unemployment numbers for Clark County climbed to 5.6 percent in December from 4.2 percent the same month in 2006.

    However, casino, hotel and gaming employment remained static. Gaming industry jobs increased 0.6 percent in December to 178,000 from 177,000 for the same month in 2006, according to the Nevada Department of Employment, Training and Rehabilitation.

    However, Las Vegas Sands Corp. added some 4,000 jobs with the opening of the Palazzo at the end of the month.

    Even companies that aren't laying off might freeze hiring.

    Continued unemployment statewide in the food, beverage and accommodation industry increased 17.4 percent in January from the same month in 2007.

    That suggests some of the jobs coming open in the industry aren't being filled.

    "We are not going to add positions," MGM Mirage Chairman and Chief Executive Officer Terry Lanni said during a December interview. "We have departments with 'x' number of people. We are going to leave them at that."

    Lanni suspects the residential real estate slump, tumultuous global credit markets and rising oil prices will sap enthusiasm -- and disposable cash -- for visits to Las Vegas.

    Harrah's Entertainment and other individual properties, where rumors of belt-tightening also are prevalent, did not return calls seeking comment.

    However, the long-term outlook for the economy still seems positive with Station Casinos, MGM Mirage, Wynn Resorts and Boyd Gaming Corp. all having large projects in the pipeline for the next three years.

    "The long-term is that Las Vegas has a bright future," Nelson said. "We're all looking at the tremendous growth in the industry with the current projects under development."

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or (702) 477-3893.

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    jackson wrote on February 15, 2008 06:43 PM: Government and business need to realize how many people live on the absolute edge of poverty now.

    A luxury vacation, gambling, is not how most people can or want to spend disposable income.

    And I agree, having panhandlers every where is threatening to people who are here on vacation. They scare me, and I live here.


    Jake wrote on February 15, 2008 04:49 PM: I said when Harrah's first started buying up everything, that it would be bad. Then MGM followed.

    LV lost it's edge because of the lack of COMPITETION.

    What was one of the first things Harrah's done when they bought up other casino's? Raised room prices, changed payouts on slot's and table games.

    The payouts are hurting LV now, people used to be able too put a twenty in a machine and win enough to keep them entertained for maybe a half an hour. Now those same players are lucky if they get 5 minutes on a twenty.

    Then the same rooms that they paid $25 or $30 for 6 years ago, now cost $60 to $70, SAME ROOM, SAME FURNITURE, SAME CARPETING, AND SAME BEDDING. All probably newer stuff, but most people do not know this.

    Then they turn on their home town news and there it is, people shot inside NY NY, people shot while on the strip, or MB's flammable foam burning.

    Then you now have gambling in other states, places where people do not have to put up with the hassle of going through the so called security at the airports. Most people can jump in the car and be at a casino with in 3 hours from their home.

    Where I lived at in Ohio, if I was there now, I could go to EIGHT casinos in 3 hours of drive time, plus about 4 more in around 5 hours of driving.

    Lets see, it takes a little over 4 hours to fly there to Vegas, then add 2 hours to get through security (what a joke).

    So lets see 2 hours in an airport and over 4 hours stuck in a metal tube or in your own car for 3 hours, hummm suddenly Vegas dose not look to good to many.


    J wrote on February 15, 2008 02:54 PM: If you want a "bargain" you cheapskates, check out Costa Rica. Nah, you don't want a real bargain, you want a lame approximation of a "middle America vacation" and -- oops, sorry! -- Las Vegas long ago learned that those types of visitors would never carry us forward into the 21st Century.

    Las Vegas should not try to compete on price because once you start competing on price that's all you'll ever be shopped for (nee: Wal-Mart).

    Most of you should spend some of your "online, uninformed ranting time" to invest in a few classes in basic grammar, spelling and research.

    Oh, wait, I forgot. You are all whiny, jealous naysayers whose misbegotten sense of entitlement has forever pinned you to a life of misery.


    Bob in Mi wrote on February 15, 2008 02:37 PM: I USED to come to LV at least 3X/yr.This year,I am NOT coming at all.Reasons:Hotel rates,entertainment prices, airfares,overhead while in LV. It USED to be great & as a rated player,comps were liberal & I reciprocated in kind with action.Now,I can drive to at least 30 joints & get RFB & be appreciated for the business that I bring.No TSA inspections,no rushing to the airport,& no Angeleno exodus!The bean counters don't realise & the wiseguys did,that a 99 cent buffet will attract more people than a $8.99 buffet.Plus,LV is no longer the EXCLUSIVE(along with Nevada) province for gaming.Face it ,LV is surrounded by 300+ miles of nothing.It is a METRO ISLAND.LV has lost sight of the "little guy" & is banking on the affluent,who can lose their bankroll in the blink of an eye.I have been coming to LV for 30 years but,even though my presence is miniscule,I 'm not coming back & I'm not alone.You can say"Who needs you?" but,multiply me x a lot more & we'll see if the 99 cent buffet & $20 rooms come back.


    Laughlin_Mav wrote on February 15, 2008 12:56 PM: HAHAHA...
    I hope you all end up without jobs!! just better hope you don't have to rely on good spelling and grammar to get a job, because from what I have read here, you're a bunch of idiots!


    David wrote on February 15, 2008 11:55 AM: It is also our responsibility to right-size our operations to the current economic conditions. Unfortunately, that includes some layoffs."

    How convenient. The last time there were major layoffs in the gaming industry, it was because of 9/11. Why can't the casinos just be honest and say 'we are laying off because the greedy executives are worried their bonuses won't keep up with inflation.


    m wrote on February 15, 2008 11:06 AM: Ok, to make my point below, check on the R.J. article from January 18, 2008 - Gaming Revenue: Casino's Post Record net income. It has not gone down, only up. My "bulls***" theory is proven. They are liars and greed runs their life.


    M wrote on February 15, 2008 10:55 AM: Bull - the casino's posted record profits in the billons. Who are they kiddn', its not slowed down, the cost of utilties goes up and they don't make the billions they are used to. There is no slow down, economy is up, everything is up so the owners have to dip into their profits of billions to pay the higher power, gas, ect., bills. They don't want to do that so they lay off to offset their bottom line. Don't buy their bull - they are rich sob's paying little to now property taxes as the middle class. Middle class pays more in property tax then any hotel. They are snowing everyone. I say, stop spending our local money at the casino's and show them really how it is to feel the pinch, just as we have with rising costs. To bad we can't fire our children for costing us more every year because that is what they are doing. Those employees made what they are today while they sit and count their tax-free money! Give me a break, I've been in this town all my life and the casino's have never posted LOSSES, NEVER. When they do, lay off all you want. You rich owners are pitiful and greedy, every last one of them. There are no exceptions.


    charles wrote on February 15, 2008 10:33 AM: Las Vegas has not been a bargain for years, and cators to a crowd that is no longer interested in coming to a crime laiden overpriced haven for the homeless..When traveling in Europe or Hawaii, no one has to be faced with constant begging and threatening gestures.The mayor is too stupid to do anything about it, and prefers to run around with bimbos from casino event to casino event. A hotel in Honolulu is presently priced at $30-$40 less than Vegas. Given the choice, where would you rather go ?? This city is not geared to family or relaxation. I live here and get out as much as I can to remind myself that there are still real people and real things to see and do. Not everyone wants to drain their wallet gambling, and I think there are way too many casinos fighting for a the same piece of the pie..Let a few close and things will turn around....


    Brandon wrote on February 15, 2008 08:50 AM: NVMojo wrote on February 15, 2008 07:10 AM:
    Will the layoff the illegals first?


    HAAAAAAAAAAAAAAAAA


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