Nearly all of the approximately 5,000 workers employed by Northwest Indiana casinos likely will be on furlough — and no longer receiving a paycheck — as soon as Friday.
Last week, the parent companies of Hammond's Horseshoe Casino and Gary's Majestic Star casinos joined the parent company of East Chicago's Ameristar Casino in halting paychecks to employees while their Region casinos are closed due to the coronavirus pandemic.
Tony Rodio, CEO of Horseshoe parent Caesars Entertainment Corp., said Thursday the company maintained employee pay and benefits for two weeks following the March 16 closing of Indiana's casinos, but Caesars cannot sustain those payments indefinitely.
"Given the closure of our properties, we are taking difficult but necessary steps to protect the company's financial position and its ability to recover when circumstances allow us to reopen and begin welcoming our guests and employees back to our properties," Rodio said.
"The company entered this crisis with strong operating performance, which, combined with the steps we are taking now, are critical to the future of our company."
Caesars employees have the option of using paid time off to maintain their income during the furlough period. The company also is paying 100% of employee health insurance premiums through June 30, or their return to work, whichever is sooner, according to Rodio.
It's a similar story at the Majestic Star casinos, owned by Indiana-based Spectacle Entertainment, which continued paying its employees through March 29, despite lacking the financial resources of its Region gaming competitors.
Spectacle also is paying 100% of the cost of employee health benefits through the end of April, according to a company announcement.
"Our team members are our most valuable asset and the champions of our business. Unfortunately, except for some security, surveillance and other critical personnel, we had no choice but to furlough approximately 95% of our workforce on March 30, in accordance with union and non-union guidelines," the company said.
"It is our sincere hope we can get through this critical situation and bring our team back together with as minimal hardship as possible."
Ameristar parent Penn National Gaming Inc. previously announced it had furloughed its employees March 31. Though the company is maintaining employee medical benefits until June 30.
Currently, the only Northwest Indiana casino still paying all of its employees is Michigan City's Blue Chip Casino, owned by Boyd Gaming.
Boyd announced March 27 it would continue employee pay and benefits until April 10. It has not said what will happen after Friday.
The Indiana Gaming Commission last month shuttered the five commercial casinos in Northwest Indiana, and eight casinos elsewhere in the state, "in the interest of public health" for "at least 14 days."
Sara Tait, executive director of the gaming commission, said the casinos likely will remain closed while Gov. Eric Holcomb's stay-at-home order is in effect, as part of a statewide effort to minimize the spread of the coronavirus.
On Monday, Holcomb extended his directive for all Hoosiers to stay home at all times — except for "essential" employment or purchases — until at least 10:59 p.m. Region time April 20.
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