Penn National Gaming to Furlough 26K Workers and Sell Tropicana - News : News
Published on
Update on

On March 27, renowned gaming operator Penn National Gaming Incorporated announced that it would be implementing additional measures in a bid to mitigate against the impacts of the COVID pandemic. The company’s management stated that the moves were unavoidable particularly because of the uncertainty regarding when things will go back to they were. Therefore, there no indications that the company would be able to bring in “meaningful revenue in the foreseeable future.”

All of its properties across 19 states have already closed down just like many other gaming operators in the country. Now, the company has announced that it would furlough 26,000 of its employees across the United States beginning April 1.

The company promised that it would continue to the employees their full wages and benefits up until March 31. Medical benefits will, however, still be maintained for furloughed employees through June 30.  An emergency relief fund has also been put in place.

“With all of our 41 properties in 19 states temporarily shuttered, like many others in the gaming and hospitality sector, we are making difficult decisions to help preserve our liquidity and ensure a brighter future for our company’s team members, customers, shareholders, and other key stakeholders.”

Jay Snowden, president, and CEO of Penn National.

In the Keystone State, Penn National has over 3,000 employees and a huge chunk of them will be affected by the furlough. Across the country, less than 850 mission-critical team members will be left.

Significant Pay Cuts for Corporate Leadership

The 26,000 employees who will be going on a leave of absence are not the only ones that will feel the pinch of the company’s new change. According to the announcement, Penn National’s Corporate leadership will also be taking cuts. This will apply to the CEO as well as the remaining property and corporate leadership.

The announcement further revealed that the Board of Directors has elected to forgo any of their cash compensation beginning April 1. All of the measures will remain in place until such a time that all of the company’s properties have returned to normal. With all of the uncertainty pertaining to the spread of the coronavirus, this will definitely take a while.

Tropicana Las Vegas Gets New Owner

One other significant announcement that Penn National made last Friday was that it would be selling its Tropicana Las Vegas real estate assets. The sale will include both the land and the buildings. Gaming & Leisure Properties, the buyer, will be paying a total of $337.5 million in “rent credits”. This basically means that Penn National will still be operating Tropicana with all of the credits being channeled towards future rent payments.

As expected, the decision to sell is also part of the company’s efforts to reduce its operating expenses amid the economic crisis caused by the pandemic. However, the decision to sell the property will have certainly have long-term positive impacts especially because it will help in “reducing liquidity pressure in terms of rent obligations.”

Latest Headlines

Pa. Poker Rooms to Remain Closed When Casinos Reopen

The pressure to reopen the economy of the United States continues to mount. Already, several states including the Keystone State are drafting plans to reopen with the responsibility of seeing this through delegated to special authorities. In the case of Pennsylvania, the state gaming control board has recently laid out measures and guidelines that the […]

The Changing Face of Gambling Across the United States

It has been quite the ride since the coronavirus pandemic began wreaking havoc on the global economy. Over two months later and the United States, just like many other countries, is still struggling to deal with the issue. However, there is a lot of pressure to reopen the economy, and, as expected, this is raising […]

Pa.’s Great iGaming Performance Not Enough to Save Overall Gambling Revenue

Earlier this week, the Pennsylvania Gaming Control Board (PGCB) released the April revenue figures for the state’s gambling industry. As expected, the downtown that began on the onset of the coronavirus pandemic has continued to wreak havoc on the sector. Most of the state’s land-based casinos have had to remain closed as part of statewide […]

PokerStars Pa. Runs State’s Biggest Online Poker Tournament

Despite the ravaging impacts of the coronavirus pandemic, the world of online gambling has been finding ways to keep the fire burning. In Pennsylvania, the land-based gaming facilities have remained closed for a while but the online gambling operators have been hard at work striving to satisfy their growing customer bases. Hopefully, things return to […]

Rush Street Interactive Brings AGS Slots to Pennsylvania

Slots lovers in the Keystone State are in for some great news thanks to the addition of some new fun and exciting slot titles to two of the state’s online casinos. This is all thanks to the recent partnership between renowned gaming solutions developer AGS and Rush Street Interactive. The latter currently runs and […]

Similar Stories in Gambling

Penn National Records Revenue Drop in The First Quarter of 2020

Penn National Gaming Incorporated, one of the country’s biggest gaming brands, has been having a bit of a tough time navigating its business over the past few months. Just like many other businesses across the state, the casino operator has had to close down key parts of its operations as part of nationwide directives to […]

Pa. Senator Proposes Use of Sports Betting Tax for Property Tax Relief

Unfortunately, the relief funds are not enough to offset some of the expenses that the country’s residents have to deal with. Such things as rent, insurance, food, mortgages, medical expenses, and power bills among other things have become very hard to deal with for most people. In the Keystone State, more help may finally be […]

PGCB Releases Keystone State’s March Revenue Figures

Ever since the coronavirus pandemic hit the United States, there have been a lot of predictions regarding how badly it would affect the economy. Most of these were rather obvious since it goes without saying that lots of businesses depended on the movement of people. Without that, there has been a significant drop in revenue […]

Pennsylvania Casinos Begin Closure Due to Coronavirus

As the recent coronavirus outbreak continues to spread across the globe, the United States is beginning to feel the pinch. A number of changes have already been implemented in a bid to deal with the issue. In Pennsylvania, one of the ways that are being used to combat the spread of the virus is the […]