Tuesday, August 12, 2014

Revel closure means employees may uproot to nearby casino havens like Philadelphia, Maryland



Tuesday’s announcement that Atlantic City’s Revel Casino Hotel will cease operations and shut down Sept. 10 just adds to the staggering amount of casino workers who will soon be out of work.

If the $2.4-billion casino does closes its doors on Sept. 10, it would leave 3,200 people unemployed. When Trump Plaza closes this fall, 900 people will be out of work, and when the Showboat Atlantic City closes later this month, 2,000 people will lose their jobs. That's 6,100 workers looking for new jobs.

Securing a job will be difficult because other properties in Atlantic City are already at capacity, experts say, so workers will most likely have to look to other states with thriving gaming industries, such as Pennsylvania, Delaware, New York and Maryland.


"We're talking about hundreds and hundreds of dealers if all three properties close," said Saverio R. Scheri III, president and chief executive of WhiteSand Gaming LLC, a consulting firm with offices in Atlantic City. "They'll be lucky if 25 or 50 of them find jobs in town. Now, where are they going to go? They'll go to Philadelphia — Valley Forge Casino Resort, SugarHouse Casino and Parx Casino."

Revel Entertainment Group LLC doesn't have the luxury of moving employees around to other properties because it simply doesn't own any. For example, if it were Caesar Atlantic City Hotel and Casino that was closing, Caesars Entertainment Corp. could send its displaced employees to Harrah's or any of their other properties.

Experts say finding a job after the three casinos close will be difficult because of the type of work certain casino employees do.

"Some of them will [find a job]. It's actually an art," said Alan Woinski, president of Gaming USA Corp, a consulting firm in Paramus, N.J. "Everywhere you go, the big concern is that you have inexperienced dealers, and professional gamblers [will] start taking advantage of them."

As to how it will affect Atlantic City, Sheri said "that’s a significant amount of rent, mortgages, and people buying gas and groceries going away because they’re forced out of the state."

Woinski said there's possible work when the Horseshoe Casino Baltimore opens later this month in Baltimore, and when the Hollywood Gaming at Mahoning Valley Race Course opens in Cleveland on Sept. 17.

"Atlantic City to Baltimore won't be a big difference, but it's still uprooting families," Woinski said. "It depends on if you want a career change."

But for other workers who are not dealers, like waitresses and waiters, Woinski said they will mostly likely be forced to work at restaurants or clubs, which will create competition.

"Whenever you have an uptick in unemployment, people start getting more aggressive looking for work," Woinski said. "It depends on what they'll look for. The kid who used to work after school in McDonald's may be displaced by the casino worker who need something in between jobs. ... It will be a trickle-down effect on the economy."

Maryland is calling

Maryland Live! Casino has already reached out to the soon-to-be-unemployed workers. The Hanover, Md.-based casino held job fairs earlier this month at the Sheraton hotel across the Atlantic City Convention Center with the hope of recruiting experienced workers.

The casino held a similar recruitment event in January when The Atlantic Club shut down. They hired 50 Atlantic City workers, spokeswoman Carmen Gonzalez told CBS Baltimore.

    “Atlantic City has proven to be an excellent source of qualified candidates for us,” Howard Weinstein, the casino’s senior vice president, told CBS Baltimore. “The workforce provides a pool of experienced talent for available positions across all departments.”

The news of the casinos' closures seem to have not have affected the Philadelphia region yet, it seems.

“It's too soon to tell what impact, if any, this may have on the Philadelphia market," said Wendy Hamilton, general manager of SugarHouse Casino.

Hamilton could not immediately confirm whether SugarHouse Casino was making similar recruitment efforts.

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