Foxwoods warns of coming layoffs

Mar 4, 2013 7:21 PM

There are no casinos in nearby Massachusetts or New Hampshire, although plans seem to be in the works for at least three in the future, but Connecticut casinos are still struggling to return to previous profitability.

Blaming the weak economy and its impact on casinos, Foxwoods Resort Casino advised its employees last week that layoffs are coming.

The number of job cuts will be modest, according to CEO Scott Butera.

As reported in The Day of New London newspaper, Butera issued a memo to employees saying Foxwoods must adjust to declining business. He also mentioned the Mashantucket Pequot Tribe, which owns Foxwoods, is close to completing a $2.2 billion debt restructuring plan.

The numbers are not available for February, as yet, but Foxwoods reported a 12 percent drop in slot-machine revenue for January, the fifth straight month of double-digit declines.

Also being impacted by the decline in slot machine business is the state since, by agreement, the state receives 25 percent of slot revenue from both Foxwoods and its neighbor, Mohegan Sun.

And these revenue reductions are taking place before massive competition could be forthcoming when Massachusetts licenses three casinos. Plans call for two commercial casinos to be located in the greater Boston area and in the western part of the state. Also, the gambling legislation calls for a slots facility, probably at a racetrack.

Further north, New Hampshire has legislation working that calls for one major casino license, which probably will be located in the southern part of the state.

To the south, the two Connecticut casinos have lost some slots business to huge facilities at Aqueduct racetrack and Yonkers Raceway in New York.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at [email protected].

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