Black Gaming lays off more workers in Mesquite
Mesquite-based Black Gaming cut its operations at the Oasis back further Wednesday as the casino company continues to struggle with declining visitor numbers and revenues.
The company laid off another 147 workers, according to a filing with the Securities and Exchange Commission. It also closed the Denny’s Restaurant, and go-kart and miniature golf facilities at the property 80 miles northeast of Las Vegas on Interstate 15.
The Oasis’ 900-room hotel, RV park and convention facilities will continue to be available on an overflow basis for the company’s other Mesquite resorts.
The company reduced the staff by 340 in December when operations at the Oasis were first scaled back.
“This is an action that was taken only after significant consideration and implementation of other steps to increase revenues and reduce operating costs,” Black Gaming majority owner Randy Black Sr. said in a statement. “While unprecedented for our company, it is an action that is essential to preserve the employment of the majority of our workforce.”
Black Gaming will record between $500,000 and $600,000 in charges related to the reductions primarily because of employee severance costs.
The company’s workforce has already shrunk by 26 percent from 2,300 workers at the end of 2007 to 1,700 employees at the end of March.
The Oasis’ golf course, gun club and time shares will remain open. The company’s two other Mesquite hotel-casinos — the Casablanca and the Virgin River — also are still open.
Black Gaming spokeswoman Marty Rapson said the Oasis casino will continue to operate 144 slot machines so it can keep its gaming license.
The property reduced the number of operating slot machines from 750 to 144 and closed its table games, nightclub, and company-owned restaurants and bars Dec. 19, through an agreement with the company’s creditors in an attempt to cut costs.
The company is in default on $205.8 million in debt and has been negotiating a restructuring plan that could end in a Chapter 11 bankruptcy.
The Mesquite City Council has extended the Oasis’ city liquor and gaming permits through July 31, which allows the property to keep its bars closed and run reduced hotel operations without losing its licenses.
City Mayor Susan Holechek could not be reached for comment on Wednesday.
The city of nearly 20,000 has suffered steep declines in visitors the first three months of the year posting 28.7 percent decrease after a 10.5 percent decrease last year, a report by the Las Vegas Convention and Visitors Authority show.
Black Gaming’s losses widened in the first three months of the year with the company posting a $5.2 million loss, according to the company’s Friday earnings release.
The loss was an increase from the $4 million loss posted last year. Revenues in the quarter dropped 27.5 percent driven by a 25.2 percent decrease in casino revenues.
The company, however, trimmed operating expenses by 26.1 percent in the quarter.
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Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.
