Layoff's Coming at Monticello?
November 13, 2007
Losing $1 million a month and customers in an alarming trend, officials at Empire Resorts, the owner of New York's Monticello Raceway, have indicated that staff layoffs may be on the way to stop the bleeding.
An article posted on the recordonline.com has quoted Empire's senior vice president Charlie Degliomini as saying, "We have been deeply affected by an economic tsunami that has damaged both our racing and VGM [video gaming machine] businesses."
The article goes on to state that Empire's revenue fell by $6.2 million to $22.5 million in the quarter ending September 30 compared with last year's summer quarter. Harness racing was off by $2.1 million, or nearly 50 per cent; video gaming machines dropped by $3.9 million, or 17 per cent; and food, beverage and other revenue decreased by approximately $398,000. Empire reported a net loss of $2.5 million for the quarter. It lost $197,000 in the year-ago quarter.
Degliomini went on to say, "…as fiscally responsible managers of a public company, we will be obligated to consider various alternatives. These would include scaling back our work force, as well as reducing the racing operation to an abbreviated resort season."
Degliomini noted that Monticello has lost VGM and racing revenue to Pocono Downs, Yonkers and Tioga Raceway and that the facility has yet to realize the impact from the new Mount Airy casino.
"It is virtually impossible for any rural business to even survive, much less thrive, by giving away 70 per cent of gross revenue [in taxes], while shouldering nearly 100 per cent of the operational and capital expenses," said the vice president.
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Losing $1 million a month and customers in an alarming trend, officials at Empire Resorts, the owner of New York's Monticello Raceway, have indicated that staff layoffs may be on the way to stop the bleeding.
An article posted on the recordonline.com has quoted Empire's senior vice president Charlie Degliomini as saying, "We have been deeply affected by an economic tsunami that has damaged both our racing and VGM [video gaming machine] businesses."
The article goes on to state that Empire's revenue fell by $6.2 million to $22.5 million in the quarter ending September 30 compared with last year's summer quarter. Harness racing was off by $2.1 million, or nearly 50 per cent; video gaming machines dropped by $3.9 million, or 17 per cent; and food, beverage and other revenue decreased by approximately $398,000. Empire reported a net loss of $2.5 million for the quarter. It lost $197,000 in the year-ago quarter.
Degliomini went on to say, "…as fiscally responsible managers of a public company, we will be obligated to consider various alternatives. These would include scaling back our work force, as well as reducing the racing operation to an abbreviated resort season."
Degliomini noted that Monticello has lost VGM and racing revenue to Pocono Downs, Yonkers and Tioga Raceway and that the facility has yet to realize the impact from the new Mount Airy casino.
"It is virtually impossible for any rural business to even survive, much less thrive, by giving away 70 per cent of gross revenue [in taxes], while shouldering nearly 100 per cent of the operational and capital expenses," said the vice president.
Find thousands of Bilingual jobs at LatPro.com.
Labels: layoffs, Monticello Raceway, New York
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