He estimated that wage increases could lift annual costs by $40 million to $60 million for Caesars and double that amount for MGM, based on their employee figures.Ĭaesars shares were up about 3% in early trading, while MGM and Wynn Resorts rose 1.6% and 0.5%, respectively. MGM has said every 1% increase in wages will equal about $10 million of additional labor costs, according to Truist analyst Barry Jonas.
The two companies were not available for comment. Talks with rival operators MGM Resorts International and Wynn Resorts are yet to yield an agreement ahead of the Nov. The unions have been negotiating for about seven months and 95% of their members voted at the end of September to authorize a city-wide strike.
'Companies that can't afford a strike shutdown are going to face the most pressure to make big concessions,' University of Michigan professor Erik Gordon said. The city is also gearing up for major events including the Formula 1 Las Vegas Grand Prix this month, which is expected to draw more than 100,000 tourists. Personal Loans for 670 Credit Score or Lower
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