Unpaid furlough for 26,000 Penn National Gaming staff

US operator Penn National Gaming has announced additional measures to fight the pandemic Jay Snowden, president and CEO, said this week.

“With all of our 41 properties in 19 states temporarily shuttered, like many others in the gaming and hospitality sector, we are making difficult decisions to help preserve our liquidity and ensure a brighter future for our company’s team members, customers, shareholders and other key stakeholders,” he said.

“Today we announced an agreement with our principal landlord, Gaming and Leisure Properties, involving the sale of the Tropicana Las Vegas real estate assets (we will continue to operate the facility) and a new ground lease for our planned Category 4 casino in Morgantown, Pennsylvania, in exchange for $337.5m in rent credits.

“In addition, the deal includes an option for us to acquire the operations of GLPI’s Hollywood Casino in Perryville, Maryland, at a future date. We greatly appreciate the cooperation, creativity and partnership shown by GLPI during this challenging time. While this transaction will help to relieve liquidity pressure in terms of rent obligations, we are committed to taking further steps to reduce our ongoing operating expenses in order to ensure we have a healthy business to return to when we are able to reopen our doors.” 

As previously announced, Penn National will continue to pay its team members their full wages and benefits through to March 31. However, several states have announced extensions of their temporary closure orders and other states may soon follow suit.

Given the uncertainty about the duration of the pandemic and with no meaningful revenue for the foreseeable future, Penn National will be implementing unpaid furloughs impacting approximately 26,000 team members companywide beginning April 1. The company is maintaining medical benefits for enrolled staffers until June 30.