New York City Boxing Scene: Resorts World Casino Earns a Billion as Buffet Closes
By Robert Brizel, Head RCM Boxing Correspondent
Resorts World Casino at Aqueduct Racetrack in Queens, New York, is the highest grossing slot machine parlor in the United States. Its gaming revenue has already passed the billion dollar mark since it opened in October 2011. Its top floor events area has hosted boxing shows for Lou DiBella, 50 Cent, New Legends Boxing and other promoters. While the boxing shows served drinks, the Food Court fed the fight fans. Now, its most conspicuous and beloved food asset-the Resorts Casino Buffet-has been closed permanently thanks to a union ruling which raised salaries and prices, and quickly put the casino buffet out of business. Ten percent of the casino workforce-175 employees-had lost their jobs.
How could such a successful casino operation, which employs over 1800 individuals, be forced to close its buffet? As a general rule, casinos lose money on food to keep gamblers happy. On average, gamblers lose most of their money on average after they eat, and casino comps usually send elite gambling clientele to the buffets and restaurants to fatten their soul. The ultimate goal-of course-is to lighten the wallets of the wallets of the gamblers by getting them to eat. Las Vegas casinos, for example, always lose money on food comps given to gamblers who earn them or not, to keep them happy, well-fed, and continuing their money losing streaks at the tables and the slots. The loss on comps has to be worth the gain with money thrown back to the casino. In the case of Resorts World, this didn’t happen.
In October 2013, after a year of in-fighting between Resorts World Casino management and the union Hotel Trades Council, an arbitrator ruled the Genting Group, which operates the casino, would have to double the average paycheck for 1,375 union cashiers, waiters, bartenders and security guards who work there. The average casino worker pay suddenly jumped from $22,000 a year to $40,000 a year plus pension and health benefits, on an average pay scale of $20.50 per hour. This included all 175 buffet workers, an across—the-board salary increase which the casino evidently had not expected to include food employees at the same scale as attendants and other workers.
Genting Group, the Malaysian concern which operates a network of casinos in Britain and Asian, opened Resorts World Casino in October 2011. It bid $381 million to open the casino, and spend $420 million to build the current casino building at Aqueduct, which has 4,525 slot machines and 475 electronic table games. Management and the union reached an impasse on economic issues in 2012, so the union invoked the arbitration clause in effect under its agreement with Genting. Arbitrator Elliot D. Shriftman made the final decision to raise wages to a living wage for all casino employees.
However, 175 casino employees working at the buffet were terminated on Monday, January 6, 2014. On Wednesday they received their final paychecks, five weeks of severance pay and four months health benefits. Their original pay at $5 an hour plus tips had gone up to $12 an hour with the new living wage agreement. With an average salary of $40,000 for buffet workers, which proved higher than the casino was able to pay in a buffet operation which was already a substantial money loser.
The buffet, which according to casino spokesperson Kerri Lyon had lost money since it opened, would have a negative financial impact on the entire casino operation if it continued in operation. The buffet had raised prices to nearly $40 per customer with a mandatory 20% gratuity, which is probably twice as much as the average gambler is willing to pay. The price increase spelled a death blow for the buffet workers, but it was the only way the casino could attempt to make the buffet cost effective. The casino originally promised to create 1600 jobs and $1 billion in revenue for New York State Public Schools. The laid off workers will have the opportunity to apply for any open positions the casino will have available.
For boxing fans, the Resorts World Casino buffet was the path of choice, as it had the best food to eat at the casino. The Food Court has some other choices, including Popeye’s, Starbucks, Chinese food, a pizza and sandwiches. There is also a steak restaurant, and bars which offer snacks. However, these food choices do not compare to the quality of the food and selection the buffet offered. The casino has earned nearly a billion dollars since it opened, but the buffet was never profitable or cost effective. The casino has confirmed the buffet space will continue to be designated for food use, and will not be taken over by slots.
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