Union for workers Unite Here, Local 54 has calculated that, in the event of a strike by Atlantic City casino employees, Caesars Entertainment and MGM stand to lose $1 million (£813,153/€943,067) day in EBITDA.
All across Atlantic City, members of Unite Here clean hotel rooms, casino floors, and restrooms.
Following a vote by employees at five Atlantic City casinos—which was approved with a 96% majority on 15 June—the union disclosed the statistics in a strike effect assessment.
All three of Caesars Entertainment's Atlantic City casinos—Caesars, Harrah's, and Tropicana—had employees cast ballots.
It also comprised employees from the Hard Rock and Borgata casinos, both of which are owned by MGM Resorts Entertainment.
Caesars might lose about $1 million in EBITDA every day as a result of the strike, according to the research. Considering that the strike causes a 25% annual drop in net revenue and that Caesar's Q3 2022 earnings would have a 10% year-on-year gain, this is the case.
If the same assumptions are maintained, the strike may result in an estimated $1.6 million in EBITDA loss for MGM's Borgata.
Availability of food and drink, customer service, and hotel room occupancy may all take a hit if the strike were to interrupt operations, the report claims.
According to the research, the tight labour market might make the strike even more devastating.
In 2004, the Unite Here strike came to a close.
In addition to the third quarter's anticipated peak, the strike deadline of July 1 occurs right before the July 4 holiday.
Caesars is particularly vulnerable to the prospective industrial action since its Atlantic City properties accounted for 15% of its earnings last year, as pointed out in the publication.
