Louisiana’s DiamondJacks casinos have announced that it is shutting down permanently as some of the state’s casinos reopen this week.

No more relief insight

Casinos in Louisiana have been shut since mid-March because of the COVID-19 pandemic. The two-month shutdown has hit the industry hard as they struggle to maintain their revenue streams. The governor allowed the casinos to reopen by Monday, May 18. Earlier, they were supposed to open at 25% capacity but later increased the limit to 505.

DiamondJacks, based in Bossier City, decided that it was not worthwhile to reopen at reduced capacity. The company announced that it will shut down because of “business circumstances” arising out of the coronavirus pandemic. Diana Thornton, the vice president of finance at DiamondJacks, said that it was a very difficult decision for the business. She said,

“We have worked diligently to be a valued member of the Shreveport-Bossier City business community. We are saddened for the loss of a longtime business here in Louisiana.”

What will happen to the workers?

The company didn’t specify how many of its workers will lose their jobs. The people affected have already been notified and they will immediately become eligible to apply for unemployment. The casino is owned by Peninsula Pacific Entertainment, according to records from the Louisiana Gaming Control Board. The company owns a 50% stake in Hard Rock Sioux City Casino in Iowa and del Lago Casino in upstate New York.

The company will continue to maintain the property during the closures. However, there are no plans for finding a new owner or investor to reopen the property. DiamondJacks is not the first US casino to shut down permanently. Nevada’s Lakeside Inn also announced its permanent closure last month due to the coronavirus pandemic.

Interestingly, Shreveport-Bossier City is one of the major gaming markets in the state. DiamondJacks is one of the six riverboat casinos operating in the region, which includes the Louisiana Downs at Harrah’s as well. It was the smallest of the six gaming properties, in terms of revenue as well as attendance. In 2020 fiscal (through March 16) it posted a $25.8 million gross revenue figure, one of the smallest among the state’s 14 riverboat casinos.