Crown Casino And Entain Cut Jobs Due to Economic Downturn
Two of Australia’s most prominent gambling employers are significantly reducing staff. Due to challenging economic conditions, Crown Casino is closing one of its two VIP casino floors. The closure will cost approximately 95 jobs.
Meanwhile, Entain is cutting jobs in Australia due to redundancy. The company fired at least 50 employees in August, with some sources claiming that the number is over 80. These cuts are not confined to Australia, as the company is enacting cost-cutting measures throughout its global operations.
Crown Casino Closes Mahogany Suite – Cuts 95 Jobs
A year ago, Crown Casino opened a pair of members-only VIP rooms. Now, one of those rooms is being closed due to challenging economic conditions. Last week, multiple sources confirmed that the Mahogany suite at Crown Casino was closed.
A spokesperson spoke to the Sydney Morning Herald and revealed, ‘Crown has made a decision to consolidate its two VIP casino floors in Sydney in response to the current macroeconomic challenges facing our industry alongside other Australian businesses.”
‘Unfortunately, this decision will impact some of our team members, and we are working with them and their union to consult on their options in the hopes of placing as many people as possible in other roles.’
The Mahogany floor was a members-only suite that featured 30 private salons. To gain access to the floor, players had to spend a minimum of $45,000 at Crown Resorts. After the floor’s closure, players can access the Crystal Room, which features 160 table games and 66 electronic casino games. There’s also a minimum bet of $20 on all games.
The closure of the Mahogany floor saw 95 jobs lost. Casino spokespeople point to the cost of living crisis and a significant reduction in player traffic as the causes of the closure. However, the floor will not be permanently shuttered. There will be occasions when it will be reopened as demand requires. One such period is Chinese New Year, when high-rolling Chinese gamblers come to town. Chinese high rollers make up around 75% of the VIP gaming market.
Entain Axes At Least 50 Aussie Jobs
As companies struggle to cope with changes in gamblers’ discretionary spending, tough choices must be made. Entain recently made some of those tough choices as they announced layoffs in Australia as part of a global cost-cutting strategy.
The number of jobs that are or that will be cut is known to be at least 50. However, some sources are claiming this figure is as high as 80. The divisions directly impacted by the layoffs include customer service, marketing, and technology. It is unclear if job cuts have concluded or if additional cuts are coming.
According to an Entain spokesperson, “Entain has enjoyed a rapid period of growth in Australia, and like any major technology-led company, we continue to review business operations and tweak our structures to set us up for the next stage of growth. Unfortunately, this has led to a small number of redundancies across a range of business units.”
Entain owns and operates both Ladbrokes and Neds in Australia. According to reports, the company employed approximately 800 people throughout Australia before the layoffs. Economic challenges and potential fines stemming from money-laundering investigations have recently forced the company to make cuts.
However, these cuts are not exclusive to Australia. According to anonymous sources, the company is engaging in cost-cutting measures globally. Entain presently has branches in Europe, the UK, and South America. These measures, plus the influx of expected revenue from taking over TAB NZ, could help Entain increase its profitability.
