Harrahs plans to cut more jobs

01.09.2003, Lesen Sie hier den Bericht über «Harrahs plans to cut more jobs».

Joliet casino: Layoffs come in wake of 70 July cuts

By Bob Okon STAFF WRITER JOLIET — Another round of casino layoffs is scheduled for next week. Harrahs Joliet Hotel & Casino will cut back its hours and cut workers to adjust to the new schedule. Assistant general manager Vince Donlevie on Tuesday said the number of job cuts will be less than the approximately 70 layoffs made by Harrah's in July, but he would not say how many. The cuts are sure to bring the total number of casino layoffs in Joliet since late July to more than 200. The casinos blame the job cuts on higher state casino taxes that were put into effect last month. On Monday, Argosy's Empress casino in Joliet cut nearly 70 jobs, which came on top of approximately 50 job cuts made previously this month. Both casinos said these latest cuts will complete the downsizing they have planned in reaction to the new state taxes, which push the graduated tax rate on casino income to as high as 70 percent. "This is what we think needs to be done to right-size the business," Donlevie said. "We have no other changes planned relative to the new tax environment." Next week's layoffs will be made as the casino cuts back its hours of operation to a schedule that runs from 10 a.m. to 4 a.m. the following morning. Harrah's now is open from 8:30 a.m. to 6:30 a.m. the next day.

Harrah's this week is accepting applications for a voluntary severance program to ease the impact of the layoffs, Donlevie said. The job cuts will be made Tuesday. The two Joliet casinos are among four in Illinois that received permission to reduce hours from the Illinois Gaming Board. The others are Hollywood Casino in Aurora and the Alton Belle, which also is owned by Empress' parent company, Argosy Gaming Co. The casinos say it doesn't make sense to stay open and generate more revenue under the new tax structure.

Gov. Rod Blagojevich has called the casino changes a "cynical" effort to avoid paying the higher state taxes. Under the new tax structure, casinos are taxed at a 70 percent rate on annual revenues greater than $250 million. Harrah's annual revenue in 2002 was $315 million. The Empress generated nearly $238 million last year, but its monthly revenues have been ahead of 2002 since opening a new barge casino in May. Casinos now are taxed at a rate of 50 percent once annual revenues surpass $100 million. Last year, the maximum tax on casino revenue was 50 percent and didn't kick in until annual revenue surpassed $200 million. The state also has increased admission taxes on casinos. Both Joliet casinos in turn have started charging customers a $5 admission fee. Quelle: The Herald News

--------------

Harrah's sues Thunder Valley over high rollers

The suit filed by Harrah's Entertainment Inc. in Placer County Superior Court claims that former Harrah's executive casino host Kitty Chui copied a list of high rollers before changing jobs and sent Thunder Valley Casino advertising to them.

Chui now works as director of Asian marketing for Thunder Valley, which is managed by Las Vegas- based Station Casinos. The United Auburn Indian Community, which owns the casino north of Sacramento, is not a defendant. As an employee, Chui signed contracts with Harrah's agreeing to protect its trade secrets, including customer lists which contain specific details regarding the customers, the complaint alleges.

Several weeks before she left the company in early March, Harrah's employees allegedly saw Chui printing information from the company database, which includes a gambler's name, phone number, business phone, occupation, address, Social Security number, spouse's name, anniversary, birthday, physical description, driver's license number, credit line and account history, according to the suit. Station Casinos hired Chui knowing that she had access to this information, according to the complaint. Station Casinos and Harrah's officials refused to comment on the specifics of the case, the Reno Gazette-Journal reported on Tuesday. Chui could not be reached for comment.

The suit asks that Thunder Valley discontinue its use of the use, pay royalties for past use of the information and compensate Harrah's for any money the casino made from the information. Information from: Reno Gazette-Journal

Über Harrah's Las Vegas Hotel and Casino:

Das Casino gehört zu Caesars Entertainment. Caesars Entertainment Inc. wurde 1937 als Harrah's gegründet und wurde 2010 in Caesars Entertainment umbenannt. Besitzer sind die Investment-Firmen Apollo Global Management, TPG Capital und The Blackstone Group.

--- Ende Artikel / Pressemitteilung Harrahs plans to cut more jobs ---


Weitere Informationen und Links:

Weitere Nachrichten der Gaming-Branche