Resorts World Las Vegas Lays off 50 Employees, Could Release Hundreds More
Resorts World Las Vegas (RWLV) laid off nearly 50 employees on Wednesday, according to a media statement released by the company late in the day. The statement did not specify which roles were impacted or provide reasons for the layoffs. However, it characterized the decision as part of the organization's broader efforts to improve operational efficiency and maintain the high level of service that the property aims to deliver to its guests.
LISTEN TO THIS ARTICLE:The announcement adds to growing concerns about the resort's current operational trajectory. RWLV, which opened in June 2021, is owned and operated by Malaysia-based Genting Berhad. While the resort has promoted itself as a premier destination on the northern end of the Las Vegas Strip, it has also faced significant challenges during its initial years of operation. The decision to reduce its workforce, albeit modest in this initial round, comes amid broader scrutiny and a challenging regulatory environment.
Related: Resorts World Las Vegas Fined over Illegal BettingGenting Berhad recently released its fiscal year 2024 earnings report on February 27. The report revealed that the company generated $5.82 billion in revenue, marking a 2.2% increase from $5.69 billion in fiscal year 2023. Despite the revenue uptick, net income declined by 5%, falling to $185.5 million from the previous year's $195 million.
Rising operating costs contributed to the erosion of profit margins, which decreased from 3.4% to 3.2%. These figures suggest that while the company is experiencing some growth in top-line revenue, profitability is under pressure due to increasing expenses.
The media statement issued by RWLV expressed appreciation for the employees who were laid off, acknowledging the contributions they made during their tenure with the company. However, concerns are escalating over the possibility of more extensive job reductions in the near future.
Industry insider Scott Roeben, who runs the Vital Vegas news account, reported on X (formerly Twitter) that the property is preparing to lay off approximately 400 more employees. While this has not been officially confirmed by RWLV, the report has added to speculation about the resort's internal restructuring plans.
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RWLV to Appear Before the NGC
The layoffs arrive at a particularly sensitive time for RWLV and Genting. Company leaders are scheduled to appear before the Nevada Gaming Commission today in response to a disciplinary complaint filed by the Nevada Gaming Control Board. The complaint, originally submitted in August and amended on March 20, outlines 10 counts of alleged regulatory violations.
These allegations stem from the period between 2021 and 2023, during which Resorts World, under then-president Scott Sibella, allegedly permitted individuals with federal felony convictions and links to illegal bookmaking to gamble at the casino.
As part of a settlement agreement with Nevada gaming regulators, RWLV and its affiliated entities will pay a fine of $10.5 million. This penalty ranks as the second largest in Nevada's history.
The largest was the $20 million fine given to Wynn Resorts in 2019 after it neglected to investigate allegations of sexual misconduct against its founder and former CEO, Steve Wynn.
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