Bad news for employees in Tunica, Massachusetts, as a casino lays off a number of people that has as yet been unspecified, citing the fact that the economy has not been as strong as expected, they are entering the period known as the off season for most casinos, and there is an increased amount of competition in the area. This means heartbreak for many people who until now were under contract with the Fitz Casino & Hotel Tunica, as they lose their means of livelihood in that same unstable economy.
On the 30th of June, the casino reported to the Mississippi Gaming Commission that they had six hundred and sixty nine employees, but they refused to reveal the details of how many of that number they have let go at this stage. General Manager Chuck Miller was contacted put declined to give a statement, while the company statement released to the press said that laid off workers were entitled to severance pay and as such would also be eligible for future rehiring if positions became available again later on.
One can probably trace the source of the redundancy to Majestic Star, the company which owns the Fitz after buying it from the Fitzgerald’s brand. Unfortunately, Majestic Star have also recently been bankrupt, having been rescued in December by ex lenders including Minnesota based Wayzata Investment Partners, who are now the largest shareholders. They are reportedly not doing as well as hoped, even after being forced to sell a casino in Colorado back in May for a respectable $28 million. They also currently own two casinos in Gary, Indiana, alongside the Fitz, which they no doubt hope to keep afloat with these latest measures.
Contributing to the issue is that the river casinos along the Mississippi have seen a slow recovery from the floors in 2011, despite the fact that it was hoped there would be much higher revenue this year. The amount of total revenue earned has only just managed to beat that of 2011 quarter by quarter, a disappointing result for these slot machine games havens.