Tabcorp Sends 700 Workers Home Until June 30
The coronavirus has dealt devastating blows to the live casino industry around the globe. Now it appears that the Australian lottery is beginning to make moves to survive the pandemic.
According to various reports, Tabcorp is now starting to furlough employees. The company will send 700 employees home until June 30th. Also, full-time employees of the company must take some time off each week.
Tabcorp Furloughing 700 Workers
The news broke on Tuesday that Tabcorp is furloughing 700 staff members until the end of June. This is being done to reduce costs and lessen the impact of the COVID-19 pandemic. Last month, all casinos in Australia were shut down by Prime Minister Scott Morrison and that shutdown will likely last at least six months. Sports leagues such as the AFL and NRL are also suspending play until further notice.
Tabcorp is standing down 700 workers, moving other staff to shorter hours and cutting CEO pay as coronavirus wreaks damage on the business. https://t.co/SUGVmD6soI
— Business Review (@aus_business) April 7, 2020
Despite the casino shutdown, Tabcorp has continued operations, including both lotteries and keno. The company had already suspended collection of payments from licensed venues, but now further cost-cutting measures are underway.
The company is not just furloughing staff member. Full-time employees at Tabcorp must also take at least one day a week off until the end of June. Employees must use one day of leave every week. Of course, the company will likely approve any other leave requests during this time.
CEO and Board Members Receive Pay Cuts
Employees are not the only ones feeling the impact of cost-cutting measures. CEO of Tabcorp David Attenborough will see his salary cut by 20% until June 30. Also, both the Board Chairman and Non-Executive Director will see a reduction of their fees by 10% until that time.
Tabcorp’s CEO is a Coronavirus Hero – He’s Sacrificed $800 000 For the Greater Good – How the Hell is Poor David Attenborough, Slasher of 700 Jobs, Going to Live on Just $60 000 a Week? https://t.co/HvYf8vTawF pic.twitter.com/UP4RYQP6wG
— ajbutterflyracing (@ajbutterflyrac1) April 7, 2020
It is unknown at this time what the eventual impact will be on profits with the company. According to reports, predictions for company capital expenditures are at $120 million as opposed to $160 million for the same period in 2019.
According to Attenborough, “We are committed to working proactively and collaboratively with all our stakeholders so we can collectively emerge from the COVID-19 period as strongly as possible.”
Cuts Are Not Surprising as World Continues to Shut Down Due to COVID-19
The furloughing of employees by Tabcorp is not surprising seeing what is happening globally. All casinos are shut down in Australia and the majority of them are shut down around the world. As reported previously, major poker events have shut down or delayed until later this year.
Major sporting contests have been delayed. Wimbledon was canceled for 2020 and the 2020 Olympics were moved to 2021. These types of things only happen during times of war. Major League Baseball has delayed the start of their season and the NBA is considering canceling the rest of their season. Even the NFL is uncertain whether they will be able to start their season on time.
The only gaming industry that’s really benefiting from this is online gambling. With people being forced into their homes for weeks and even months, the increase in online gambling has been noticeable. Many Australian online casinos are seeing bumps in traffic and the number of deposits.
Many of our casino partners are offering special online casino bonus offers during this time to draw in new players. With new online pokies coming out weekly, players will have plenty of options for passing the time and potentially winning some money while on quarantine.
Unfortunately, this crisis does not appear to be going anywhere soon. This is something we will be dealing with for most of the summer. As such, the best companies can do is try and limit the damage caused while trying to keep themselves in business.