It is quite a difficult time for economies as the impact of COVID-19 becomes apparent in the form of unexpected layoffs, sudden job cuts, and closing operations. The casino industry is severely impacted as government restrictions have resulted in a reduced flow of gamers to casino properties. As a result, casinos are laying off employees with the latest news coming from the Encore Boston Harbor. The casino has announced that it will lay off 385 workers, who were already on furlough due to the constrained financial conditions.
Finer Details
The announcement does not surprise since the negative impact of the coronavirus on the businesses is very much visible, cutting across industries. People’s movement has been restricted because of strict lockdown measures, and as a result, the services and entertainment sector are severely hit.
The business of gambling is exclusively dependent upon the footfalls, and if gamers do not walk into the property, it will negatively impact the company’s financial performance. Another important caveat that comes bundled with the announcement is that the company does not see any prospects of these jobs returning in the year 2020. The press statement released by the Encore Boston Harbor cited the difficult financial times a reason for this layoff.
According to the government’s re-opening scheme, casino properties in Massachusetts were allowed to open in phase three of the economy opening plan. Encore Boston Harbor had opened on July 12, and since then, it has been welcoming guests with fervor and enthusiasm.
Conclusion
The high intensity of unpredictability in the economy keeps people’s spending in check and, in turn, is adversely impacting the overall revenue prospects of various industries, including the casino industry. It will be interesting to witness how things will shape in the future, when gamers will return to the casino properties, and whether we would witness the same crowd compared to pre-COVID times. Undoubtedly, it will take some time before the industry starts witnessing a healthy increase in revenue again, and before that happens, the industry’s internal stakeholders have to bear with the downfall.
