Atlantic City Casino Workers Vote To Strike On July 1

Battered Atlantic City casino operators could have another major headache on the way in less than two weeks. Casino workers at four of the city’s remaining casino resorts have set July 1 as a negotiation deadline or they will go on strike.

The casino workers’ union has said that workers are paid an average of $11.74/hours and that even 12-year veterans received just 80 cents/hour in raises.

“Service workers at the casinos are frustrated by billionaire private equity investors who swoop in to ostensibly ‘rescue’ businesses, but focus instead on squeezing out profits at the expense of working people,” the union’s statement read.

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Atlantic City’s casino boom peaked back in 2006 when the city brought in a record $5.2 billion in gross gaming revenue. Since then, revenue has steadily declined as neighboring states opened up casinos of their own.

Ninety-six (96) percent of the workers at Caesars, Bally’s, Harrah’s and Tropicana voted to go on strike this week. Caesars, Bally’s and Harrah’s are all owned by Caesars Entertainment Corp (NASDAQ: CZR).

While Caesars investors are sweating a potential strike, a strike could be good news for rival Atlantic City casinos. The Borgata is the highest-grossing casino in the city. MGM Resorts International (NYSE: MGM) recently bought out Boyd Gaming Corporation (NYSE: BYD)’s 50 percent stake in the Borgata.

Disclosure: The author holds no position in the stocks mentioned.