MGM Lays Off Thousands More Casino Employees As MA Casinos Try To Recover

The current situation at MGM Springfield reflects the reality that when a business faces restrictions on generating revenue, the only viable solution to maintain profitability is to reduce expenses. This is exemplified by the recent layoffs implemented by the entertainment company.

MGM recently made the difficult decision to lay off an additional 18,000 employees at all of its properties across the country. The timeline for re-hiring any of these individuals remains uncertain.

Why there was another round of MGM Springfield layoffs

To put it simply, there has been a decrease in income. Moreover, the prospects for a significant and immediate increase in that aspect are limited. In a comparison between July of this year and the previous year, MGM’s gross revenue declined by more than 40%.

The casino is currently operating at its maximum capacity, both in terms of the number of guests it can accommodate and the variety of entertainment it can provide.

MGM and Encore Boston Harbor were denied permission by the Massachusetts Gaming Commission (MGC) to reintroduce table games. Adding to the constraints, there are also limitations imposed on indoor dining and live entertainment.

If the MGC were to loosen those restrictions, MGM would have the opportunity to rehire some of their employees. However, it is important to note that the situation would still be uncertain.

Predicting the extent of the return of its regular crowd to the blackjack, craps, and poker tables will pose a challenge for MGM.

Playing table games strategically could provide some relief, albeit with limited returns.

Casinos across the country adapt to maximize profits

Casinos located in various regions across the country have prioritized the optimization of available real estate. This encompasses establishments situated in states where casinos are permitted to offer table games, albeit with certain limitations.

In order to meet their targets, the casinos have implemented several measures. They have installed plexiglass barriers between seats and are providing fresh decks of cards after each game. Additionally, operators have raised the buy-in amounts.

Outdoor concerts are being considered as a fresh addition to the live entertainment options. This idea holds potential for Massachusetts casinos too. The most recent guidelines provided by Gov. Charlie Baker outline the necessary protocols for implementing such events.

Baker implemented a restriction on outdoor gatherings, which states that the maximum number of people allowed should be either 25% of the fire code capacity of the area or eight individuals per 1,000 square feet, whichever is smaller.

Although it may not appear significant, it is double the current limit for indoor events set by the state.

MGM Springfield and other state casinos have the opportunity to generate additional revenue by hosting outdoor concerts in locations like parking lots, as long as the weather remains favorable.

While it may not fully compensate for a 40% decline in overall revenue, it could potentially rehire a portion of the numerous currently unemployed staff members.