In the New Orleans metro area, about 200 employees could be laid off at the Boomtown Casino. Penn National Gaming is planning to remove 1,150 employees from its workforce in August.

Massive job losses

The Louisiana Workforce Commission suggests that Penn National Gaming could be laying off hundreds of its staff members in August. According to a notice filed with the regulator, the operator will be removing 160 workers from L’Auberge Hotel and Casino, Baton Rogue will be laid off. Another 440 workers will be removed from the L’Auberge Lake Charles casino. The Harvey-based Boomtown Casino will also be removed about 200 employees from its payrolls. The Margaritaville Resort Casino in Bossier City could also let go of 350 workers. The job cuts will most likely be completed by August 15.

The job losses are a direct consequence of the coronavirus pandemic which has left casinos reeling in the absence of business. Gambling properties across the country have been shut since mid-March which has created a significant cash crush for operators.

Major losses for all operators

Penn National is not the only gambling operator that is cutting jobs at its properties. Las Vegas- based Boyd Gaming Corp is also laying off over 1,500 of its staff members. However, the company spokesperson David Strow said that they have not decided the actual number of people to be laid off yet.

According to The Advertiser, casinos lost $347 million during the months of March and April. Video gaming establishments also lost $90 million. The Senate Revenue and Fiscal Affairs Committee agreed to a bill that would provide an $83 million tax break to the casino industry over a period of five years. The bill would also allow each of the casinos to give $5 million to customers in free promotional play wagers. They will not have to pay taxes on these amounts. However, anything above $5 million will be taxed at 21.5%.

This tax break will cost the state about $11.2 million in the next fiscal. The Legislature is also reeling under pressure because of loss of revenue. It would be cutting its spending on higher education by about $21 million.