Financial Crisis Hits Nevada Casino

The financial crisis has claimed another victim in the gambling industry, with the announcement that Black Gaming will temporarily close the Oasis Casino in Mesquite, Nevada this week.

The company will cut 500 jobs, according to its filing with the Securities and Exchange Commission.

But while the casino, restaurants and night club will be shut, the 900-room hotel and other facilities will remain open.

Still hopeful
While the company's filing referred to the move as temporary, its CEO Randy Black, Sr. said in an accompanying statement that the gaming market faces challenges which make it impossible to give assurances about when the casino will be reopened.

"We're all hopeful the economy comes back," he said. "Because if it doesn't, things are just going to get worse."

Disappointing numbers
Oasis, situated in the town of Mesquite, around 80 miles (50 kilometers) northeast of Las Vegas, experienced a 6.6 percent drop in visitors in September, according to the Las Vegas Convention and Visitors Authority. Black Gaming's third quarter revenues dropped 23.6 percent.

This latest instance shows that the financial crisis is affecting people in all forms of the gambling industry, whether in big or small towns.

Before the current round of layoffs, the CasaBlanca, Oasis and Virgin River casinos - all operated by Black Gaming - were the top three employers in Mesquite, employing more than 2,000 employees in a town of less than 15,000 inhabitants.