The Monte Carlo Hotel Casino experienced a fire last month. The top of the building caught on fire, and there has been speculation as to what actually started that fire.
MGM Mirage Inc. has claimed now that the fire will cost $100 million in estimated damage. The company does have insurance, and it is unknown how much of the money will be paid by insurance and how much the company will have to put out.
The casino hotel has not yet re opened after the fire, although it is moving in that direction. Friday has been the target date to open again. Even when open, only certain rooms will be available.
Since MGM has nine different properties on the Las Vegas Strip, employees have been working feverishly to make sure that all booked guests were transferred to one of the other properties.
As far as the money for the renovations to the hotel, the company is hoping to get some back from their insurance. “While we do have insurance and we are confident we will not lose all that $100 million, how much we get back remains to be seen,” said a spokesman for MGM, Alan Feldman.
The company is expected to lose between $20 and $30 million in lost revenue from the time it has been closed. With the market slow anyway, that number had the potential to be much higher had it been in another year.
Pinnacle Entertainment Stock Maybe Causing Layoff at Reno Casino
Pinnacle Entertainment has not had a good year. Their stock has declined by nearly fifty percent and it is causing problems for some of its casinos.
Boomtown has lost its truck stop and that coupled with yearly seasonal slowdowns, has cost twenty eight employees their jobs. The layoffs come as Boomtown’s parent company, Pinnacle, is watching their stock plummet.
The truck stop that had employed some people was eliminated to make room for a new store, Cabela’s. The layoff affected all areas of operation. The Supervisor of Hotel Operations, the Food and Beverage Manager, and the security Director, all lost their jobs.
In addition to the jobs lost, many other employees have had their hours reduced. That will almost certainly mean more people will quit and try to find full time jobs.
Pinnacle owns casinos all across the United States. they have properties in Indiana, Missouri, and Louisiana. They also have casinos that they operate in the Bahamas.
Although the company’s stock price is down, they are not blaming the layoffs in this case to the stocks. It just so happens that the two events coincide. Only time will tell whether the companies other properties will also begin laying off employees.