Despite good sales, employees in Las Vegas are being laid off

Contradictory reports are currently being published: On one side there is news reporting very high turnovers in the Las Vegas casinos. On the other hand, there are now reports that a hotel and casino operator is not only laying off employees, but is also keeping casinos closed.

Casino-Hotel-Resort in Las Vegas.

Although sales in Las Vegas are slowly stabilizing, MGM Resorts International has thousands of employees dismiss.(©YS-Park/Pixabay)

July was the busiest month in Las Vegas

Laut Nevada Gaming Control Board wurden im More than KES/EUR/USD600 million was generated in casinos in Nevada in July. It is true that this is a drop in sales compared to previous years. However, if this sum is compared with the previous months of this year, there is a significant increase in sales. In view of the fact that many casinos were closed for weeks and months and operations have to be brought back into operation, the casino operators can be quite satisfied. The months with the weakest sales were April and May. They reported a drop in sales of over 99 percent - in July it was only 26 percent compared to previous years.

According to an interesting study,July's visitors came from almost every state in the USA. Although the largest number of visitors came from California, other states were also represented. Thus, it was primarily local people - the number of tourists from other countries fell sharply.

Gaming has been legal in Las Vegas since 1931. In 1941 the first casino hotel opened, albeit a little out of town. Over the years, Las Vegas has developed into an Eldorado for gambling and recorded 42 million visitors in 2019. Due to the corona pandemic, this number fell significantly in 2020. This decline must be corrected as soon as possible, since Las Vegas primarily thrives on gambling. Congresses, concerts and various championships are also held in this city. Nevertheless, it has been the case so far that visitors came because of the casinos. According to statistics, a visitor spends an average of 3.7 days in Las Vegas.

MGM lays off more than 18,000 employees

Although the sales development is positive, one operator is by no means satisfied: MGM wants or has to lay off more than 18,000 employees. This group operates casinos and hotels not only in Nevada, but in several US states. In Las Vegas there are the Bellagio, the MGM Grand and the Mirage. All casinos were closed during the Corona pandemic and62,000 employees were put on forced leave. Now many of them have to be released.

The main reason for this action is the decline in sales. Most of the closed casinos are now open again.However, the current visitor numbers still do not match the previous numbers. Another reason is that in the USA, according to a law, employees must be fired in certain circumstances: Anyone who has been put on forced leave and cannot return to work after six months must be fired.

Another reason for the decline in visitor numbers is the travel restrictions that continue to apply. Of course, not only Americans, but also many tourists from other countries have flocked to Las Vegas in recent years. As long as the travel restrictions are in place, all casinos in the US will face a drop in revenue. In addition,Casinos are only allowed to accept half as many visitors as before the Corona pandemic. This may also be a reason why an MGM casino in Las Vegas remains closed. The hotels operated by MGM are also less busy than they used to be. As a result, not only employees of the casinos are affected by a dismissal: on congress weekends, the hotels in Las Vegas were 100 percent occupied. In the last few months, MGM has only had an occupancy rate of just under 43 percent. The group tried to change this fact with dumping prices, but with moderate success.

About MGM

Currently,MGM is the second largest casino operator in the world. But that wasn't always the case. The MGM company was formed when Kirk Kerkorian took over the Hollywood film studio Metro-Goldwyn-Mayer in 1969. Shortly thereafter, the first casino resort was opened in Las Vegas: MGM Grand Hotel, which now offers more than 5000 beds. In 2000, Mirage Resort was taken over, which is why the group was renamed MGM Mirage.

The Mirage Resort included the Casino Hotel Bellagio and Mirage – both in Las Vegas. Over the years more acquisitions followed and in 2010 thecompany was renamed MGM Resorts International. This was also when the focus shifted to the real estate business. As a result, MGM not only operates casinos and affiliated hotels. A large real estate complex was also created in Las Vegas, which also includes condominiums and shops. This complex covers more than 30 acres and is located on Las Vegas Boulevard.

The headquarters of the MGM Group is in Las Vegas, which is why the largest number of casinos and hotels are most likely in this city.Another four resorts are in Nevada, while other casinos are in Mississippi, Illinois, Detroit Michigan, New Jersey, Connecticut. There are also some casino resorts owned by this company in Dubai and Macao.

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The article was published on September 7th, 2020 in the Fraudtest.com magazine under the Tags,,,,,, || |112 published.
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