Laurie Wink, The News-Dispatch
MICHIGAN CITY - Blue Chip Casino has announced it will lay off 6 percent of its workforce within the week.
The decision was made after attendance and revenues dropped with the August opening of Four Winds Casino Resort, New Buffalo, Mich. The new casino, operated by the Pokagon Band of the Potawatomi Indians, is a mere 15 miles from Blue Chip, operated by Boyd Gaming Corp.
David Strow, Boyd Gaming director of corporate communications, said Sunday night he does not expect more layoffs. He said this was not the first alternative used to boost profits in an intensely competitive new market.
"We tried every plausible alternative to reducing the workforce, including reducing work shifts," Strow said. "We had no choice but to reduce expenses.
"We realize what kind of impact this will have on employees. Those employees affected will have preference for positions opening up."
Laid-off employees have been offered positions at other Boyd Gaming casinos around the country. Strow refused to give details about the number of employees and the departments impacted by the layoffs.
Strow said Boyd Gaming expected a downturn in its Blue Chip business. According to the Indiana Gaming Commission, attendance at the Blue Chip in September was 225,337, down more than $58,000 from the previous year. Revenue this September was $18.4 million, down more than $5.5 million from September 2006.
"When you have a new casino, it's very typical to have an impact when customers sample a new competitor in the market," Strow said. "In the long term, we have a competitive product, and we remain optimistic about our long-term future."
In October, Blue Chip announced some details about the $130 million, 22-story hotel tower and convention center under construction. The building, designed by architect Lucien Lagrange, Chicago, has a curved design of blue glass that will reflect the sky and nearby Lake Michigan. The hotel will have 300 guest rooms, a spa and fitness center and additional meeting and event space.
The project, expected to be completed by the end of next year, will move the main entrance of the casino, expand dining facilities and add a 1,200 seat entertainment center capable of hosting Las Vegas-style entertainment.
"The new hotel will be a very attractive, upscale product," Strow said. "It will allow us to draw in customers from further out."
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