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Jobs Cuts Loom Due to AC Overhaul

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Residents, lawmakers, and supporters of the plan to overhaul Atlantic City’s gambling industry have had plenty to celebrate now that the plan has finally come to order. Residents were generally satisfied with how things have taken shape since the overhaul is seen as the first step towards revitalizing the local economy. Amidst celebrations and the general optimism, bad news struck: 115 gaming inspectors will lose their jobs. The news comes as the overhaul of the gambling industry in the city has made their jobs obsolete. The bill, recently passed into law, has eased several gambling regulations so that casinos may be able to operate with an increased breathing space. Unfortunately for the gaming inspectors, a section in the law has abolished previous provisions that would require gaming inspectors to be present in the gambling halls round the clock. Without this requirement, the city no longer needs gaming inspectors.

The gaming inspectors received their layoff notices a day after Governor Chris Christie signed the bill into law. Daniel Heneghan, a commission spokesman said “We have sent out notices to 115 inspectors indicating that because of those legislative changes, their positions are being eliminated,”. The gaming inspectors will officially lose their jobs on March 25, leaving them with just over a month to seek new employment. The law has also caused several administrative changes in the regulation of the gambling industry. The Casino Control Commission, which has always been the regulating body for gambling in the city will now be replaced by a state agency, the Division of Gaming Enforcement.

Further worsening the situation, it is reported that layoffs will continue in the future. The Casino Control Commission has under it employment, 144 gaming inspectors. Several gaming inspectors will keep their jobs—but not for long. According to the commission, these inspectors, who had supervisory roles, will be assisting in acclimating the new body, the Division of Gaming Enforcement, to the city. Once the state body establishes itself, the inspectors will no longer be needed. “By virtue of the changes to the Casino Control Act, those positions will be eliminated,” Heneghan added. Furthermore, the Casino Control Commission will now only be handling matters of issuing casino licenses, which does not need many of its previous employees in order to function.

Heneghan confirmed that the job cuts will continue further, even after the Division of Gaming Enforcement has already taken over. “Once those transitions are complete, there clearly will be additional adjustments to our staffing levels,” Heneghan said. “I can’t say precisely how many there will be.” The legislation was passed due, in most part, to the weak performance of the city’s casinos. Atlantic City is a premiere gambling destination in the country, but the previous years have seen the city’s casino industry crumbling. Several operators had to either file for bankruptcy or sell their casinos. Just this week, Trump Entertainment Resort has sold one of its properties, Trump Marina Hotel Casino, for a tenth of its price in 2008. The casinos that are still in operation have complained that the city imposes regulations that are too strict for them to adjust effectively to the stale market. With the law passed, Atlantic City has now eased its regulations, which can now be compared to those imposed on casinos in Las Vegas.

The law would also abolish minimum staffing requirements, possibly causing some employees from casinos to lose their jobs as well. Among those that could possibly lose their jobs are the casino’s pit bosses. “Casinos have already told us they want to get rid of pit bosses to save millions of dollars over and above the regulatory changes,” said the commission’s chair, Linda M. Kassekert. However, Bob Griffin, president of the casino association, maintains that those demands were outdated. He said that the casinos will not be taking any drastic steps in workforce reduction. He further added that there won’t be any layoffs if it could be helped. With that, Griffin expressed his optimism for the future of the city. He believes that had the bill not pushed through, employees would have faced more serious job cuts. “The future of Atlantic City is much brighter today than it was last week,” he continued.