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Horizon Casino Resort is acquiring Caesars Tahoe.
STATELINE - Before Kentucky-based Columbia Sussex Corporation is to take possession of Caesars Tahoe Friday at midnight, word has surfaced of dozens if not more than 100 layoffs that began Monday and will continue today.
Two phone calls to the Fort Wayne, Ky.-based corporation were unreturned Thursday. Shirley Wheeler, who serves as acting general manager for Horizon Resort Casino, which is owned by Columbia Sussex, would not comment on or confirm the layoffs. When asked about them, she said that many employees "quit on their own."
"The takeover is tomorrow. We take possession tomorrow at midnight," Wheeler said.
The Tahoe Daily Tribune has learned through interviews with several employees that the layoffs have taken place in several departments including maintenance, engineering, housekeeping and more than a dozen dealers and the entire sports book.
When Harveys Resort Casino merged with Harrah's Lake Tahoe in 2001 some 250 workers were laid off. Departments such as transportation and marketing were consolidated, with the housekeeping department going to contract workers.
Several Caesars' employees, who spoke on condition of anonymity because they fear for their own jobs, told of waves of firings that began on Monday and lasted throughout the week. One person estimated that as of Thursday at least 175 employees were let go.
An employee at Caesars since 1991, who did not want to be named for fear of retribution, said, "Everyone is expecting the worst." He didn't know if he would be fired.
A severance package apparently has been offered by Caesars to some of the fired employees that amounts to one week of pay for every year the person had been employed, one employee stated. Part of the stipulation for the severance package is that employees are not to publicly discuss casino business.
Two phone calls to the Fort Wayne, Ky.-based corporation were unreturned Thursday. Shirley Wheeler, who serves as acting general manager for Horizon Resort Casino, which is owned by Columbia Sussex, would not comment on or confirm the layoffs. When asked about them, she said that many employees "quit on their own."
"The takeover is tomorrow. We take possession tomorrow at midnight," Wheeler said.
The Tahoe Daily Tribune has learned through interviews with several employees that the layoffs have taken place in several departments including maintenance, engineering, housekeeping and more than a dozen dealers and the entire sports book.
When Harveys Resort Casino merged with Harrah's Lake Tahoe in 2001 some 250 workers were laid off. Departments such as transportation and marketing were consolidated, with the housekeeping department going to contract workers.
Several Caesars' employees, who spoke on condition of anonymity because they fear for their own jobs, told of waves of firings that began on Monday and lasted throughout the week. One person estimated that as of Thursday at least 175 employees were let go.
An employee at Caesars since 1991, who did not want to be named for fear of retribution, said, "Everyone is expecting the worst." He didn't know if he would be fired.
A severance package apparently has been offered by Caesars to some of the fired employees that amounts to one week of pay for every year the person had been employed, one employee stated. Part of the stipulation for the severance package is that employees are not to publicly discuss casino business.
"It's devastating. There are people walking around here crying," said an employee who has been with the company since 1979. "The human side to this is really terrible. People don't know which way to turn. A lot of people have a couple of jobs to begin with. The way it is now, there is not that many more jobs left up here."
Columbia Sussex Corporation executives will reportedly be in Stateline on Friday when the deal is to be inked. Columbia Sussex is the same corporation that owns Horizon Casino Resort directly across the street from Caesars Tahoe.
A Caesars Tahoe publicist, Shannon Johnson, told the Tribune that information regarding the close of the sale will be released in a press statement Friday after 3 p.m., and declined to comment on any of the layoffs.
The deal comes on the heals of the planned merger of Harrah's Entertainment and Caesars Entertainment Inc. On Wednesday, the Federal Trade Commission gave Harrah's permission to merge with Caesars, which is expected to close on Monday. As part of the deal, Caesars Entertainment agreed to sell off its Stateline property to Columbia Sussex. The transaction is being made to avoid one company having a monopoly over the entire casino corridor.
Terms of the Caesars Tahoe/Columbia Sussex deal have not been released.
Gaming board unaware of layoffs
Dennis Neilander, chairman of the Nevada Gaming Control Board, said he was not aware of any layoffs at Caesars Tahoe. He said, however, the hearing on the sale of Caesars was scheduled in Las Vegas Friday and that he would ask the parties about it.
A spokeswoman for the Nevada Labor Commission in Las Vegas said she was unaware of layoffs. Large companies are required by federal law to state how many layoffs will take place, but she wasn't sure if Columbia Sussex, which is a privately held company, fits into the laws' requirements.
Columbia Sussex Corporation executives will reportedly be in Stateline on Friday when the deal is to be inked. Columbia Sussex is the same corporation that owns Horizon Casino Resort directly across the street from Caesars Tahoe.
A Caesars Tahoe publicist, Shannon Johnson, told the Tribune that information regarding the close of the sale will be released in a press statement Friday after 3 p.m., and declined to comment on any of the layoffs.
The deal comes on the heals of the planned merger of Harrah's Entertainment and Caesars Entertainment Inc. On Wednesday, the Federal Trade Commission gave Harrah's permission to merge with Caesars, which is expected to close on Monday. As part of the deal, Caesars Entertainment agreed to sell off its Stateline property to Columbia Sussex. The transaction is being made to avoid one company having a monopoly over the entire casino corridor.
Terms of the Caesars Tahoe/Columbia Sussex deal have not been released.
Gaming board unaware of layoffs
Dennis Neilander, chairman of the Nevada Gaming Control Board, said he was not aware of any layoffs at Caesars Tahoe. He said, however, the hearing on the sale of Caesars was scheduled in Las Vegas Friday and that he would ask the parties about it.
A spokeswoman for the Nevada Labor Commission in Las Vegas said she was unaware of layoffs. Large companies are required by federal law to state how many layoffs will take place, but she wasn't sure if Columbia Sussex, which is a privately held company, fits into the laws' requirements.
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The effects to the South Shore community will be shared on both sides of the state line, said Douglas County Commissioner Tim Smith, whose district includes Stateline and Zephyr Cove.
"The fallout of this remains to be seen. Only time will tell what the impact will be," said Smith, who had heard of the merger and assumed there would be layoffs.
While anticipating some layoffs, Maggie Wattle of Job One Resource Center was surprised to learn of the firings, adding that she didn't figure a large-scale layoff would take place.
"We wouldn't have expected this at all. You still have to have people to run things and provide core services to guests," Wattle said.
The office will make preparations to see an onslaught of fired workers visiting the center in the coming weeks, she said. The employment center is run through the Employment Development Department and El Dorado County Human Services.
"Families who find themselves in a crisis because of the loss of earned income will invariably come in to apply for cash aid and food stamps until they can go back to work again," Wattle said.
Latino community hit hard
The apparent layoffs seem to be affecting many in the Hispanic community. Jenny Rivero, who has lived in Tahoe for 15 years, said many of her friends who do work at Caesars are shaken to the point of crying over the layoffs. Rivero does not work for a casino, but she said she has friends who have worked there upward of 20 years who lost their jobs Wednesday.
"The fallout of this remains to be seen. Only time will tell what the impact will be," said Smith, who had heard of the merger and assumed there would be layoffs.
While anticipating some layoffs, Maggie Wattle of Job One Resource Center was surprised to learn of the firings, adding that she didn't figure a large-scale layoff would take place.
"We wouldn't have expected this at all. You still have to have people to run things and provide core services to guests," Wattle said.
The office will make preparations to see an onslaught of fired workers visiting the center in the coming weeks, she said. The employment center is run through the Employment Development Department and El Dorado County Human Services.
"Families who find themselves in a crisis because of the loss of earned income will invariably come in to apply for cash aid and food stamps until they can go back to work again," Wattle said.
Latino community hit hard
The apparent layoffs seem to be affecting many in the Hispanic community. Jenny Rivero, who has lived in Tahoe for 15 years, said many of her friends who do work at Caesars are shaken to the point of crying over the layoffs. Rivero does not work for a casino, but she said she has friends who have worked there upward of 20 years who lost their jobs Wednesday.
"I know people who go to St. Theresa to pray, and they have heard people crying and praying to God to please help the people who work for Caesars," Rivero said through an interpreter.
Rivero said things are getting harder for South Shore workers. Two years ago, you could get an apartment for $650, now it's $950, she said.
A few people who were laid off will leave Tahoe, others are looking for a job and others will likely leave if they don't find work soon, she said.
Word of the layoffs has circulated among nonprofit organizations in South Lake Tahoe, including the Family Resource Center. Six fired Caesars' employees have asked the nonprofit organization for help with medical insurance, food and rent money. Theresa Ramirez, office coordinator, was told by one employee to expect at least 30 fired employees coming through the office Friday and next week.
"This is really bad and affects the whole community," she said. "It will be hard on the families who are here because there aren't enough jobs in the community."
The Family Resource Center, which primarily aids South Shore Hispanic families, will hold a garage sale fund-raiser on Saturday. Money collected from the sale will almost certainly go to displaced casino workers, she said.
"The garage sale will be worth attending because of the layoffs," Ramirez said.
The sale will be on Saturday at 3501 Spruce Ave. in South Lake Tahoe.
- Tahoe Daily Tribune reporter Amanda Fehd, Tribune news editor Tim Parsons and Nevada Appeal Capital Bureau reporter Geoff Dornan contributed to this report.
Rivero said things are getting harder for South Shore workers. Two years ago, you could get an apartment for $650, now it's $950, she said.
A few people who were laid off will leave Tahoe, others are looking for a job and others will likely leave if they don't find work soon, she said.
Word of the layoffs has circulated among nonprofit organizations in South Lake Tahoe, including the Family Resource Center. Six fired Caesars' employees have asked the nonprofit organization for help with medical insurance, food and rent money. Theresa Ramirez, office coordinator, was told by one employee to expect at least 30 fired employees coming through the office Friday and next week.
"This is really bad and affects the whole community," she said. "It will be hard on the families who are here because there aren't enough jobs in the community."
The Family Resource Center, which primarily aids South Shore Hispanic families, will hold a garage sale fund-raiser on Saturday. Money collected from the sale will almost certainly go to displaced casino workers, she said.
"The garage sale will be worth attending because of the layoffs," Ramirez said.
The sale will be on Saturday at 3501 Spruce Ave. in South Lake Tahoe.
- Tahoe Daily Tribune reporter Amanda Fehd, Tribune news editor Tim Parsons and Nevada Appeal Capital Bureau reporter Geoff Dornan contributed to this report.
