Scientific Games’ executive leadership has voluntarily reduced its salaries to mitigate the impact of the COVID-19 pandemic.
Scientific Games has announced several measures which include the executive leadership voluntarily reducing its salary to help mitigate the impact of the coronavirus pandemic.
The company’s executive leadership will reduce their salaries by 50% while the supplier’s chief executive Barry Cottle will reduce his salary by 100%, going without pay.
What about the staff?
In order to help preserve as many jobs as possible, the company’s workforce will have hours and pay reduced. On top of this, workers in support roles that have seen a significant drop in work will be furloughed. Scientific Games did not specify how many staff members would be affected or by how much working hours and pay will be reduced.
Scientific Games will also create a hardship relief fund to help support furloughed staff by providing short-term assistance to impacted employees and their families. Scientific Games, Barry Cottle and other senior management staff will make contributions to this relief fund.
Scientific Games CEO Barry Cottle said: “Like many others, our industry is facing unprecedented challenges from the widespread impact of the COVID-19 outbreak. We are working around the clock to take care of our employees, customers, shareholders and other key stakeholders in these difficult times, while providing uninterrupted products and services to those customers who continue to operate.
“Thankfully, we came into this year with a very strong liquidity position, including substantial capacity under our revolver, and also refinanced our debt, extended our major maturities and lowered our interest expense. We have a diverse portfolio of assets, product and services that uniquely position us to weather this crisis.
“We are taking a variety of actions to help ensure that we meet the demands of this outbreak and are ready when the industry begins to recover. I am confident that the measures we are taking now will prepare us to come out of the crisis even stronger than before. And, I have never been prouder to lead a team where everyone is stepping up to help each other, our partners and our Company.”
The impact of coronavirus on the US gambling sector
With the closure of all commercial casinos in the US and only a handful of small tribal venues remaining open as well as the shutdown of nearly all major sporting events, the US gambling industry has been severely affected by the coronavirus pandemic.
Scientific Games is one of several US companies to announce plans to help mitigate the impact of the pandemic. Penn National Gaming and Churchill Downs both announced they will temporarily furlough staff. Alternatively, MGM Resorts announced the creation of an emergency relief fund for staff, along with a $1m donation to the fund.
Last month, the American Gaming Association (AGA) warned that the US economy could face a $43.5bn hit due to the shutdown of the country’s gambling sector.