The global gambling industry has taken a major hit because of the coronavirus pandemic, and, in the U.S., all casinos are currently shut down. Hopes of being able to restore operations quickly have been thwarted by the continued presence of the virus, with new orders being implemented to extend the closures through the end of the month. Atlantic City, New Jersey’s gambling hub, was already in a bad way before COVID-19 came into town, and the virus has only made matters worse. As a result, with not enough money in the bank to weather the storm, 16,000 casino employees are now at home, hoping to be able to collect some type of unemployment compensation.

Some casino operators in the country, such as Las Vegas Sands and Wynn Resorts, have enough cash to continue to pay furloughed employees. However, this isn’t the case with those in Atlantic City. The Press of Atlantic City reports that the workers were handed their pink slips so the casinos can save money and allow the employees to file for unemployment compensation. However, once health officials give the all-clear and officials lift the casino suspension, the companies have indicated that they will hire back the employees.

In New Jersey, since the state-wide shutdown began, unemployment claims have continued to rise. In a normal week, there may be around 6,800 applications. However, from March 22 to 28, there were 206,253, and the week prior saw 155,815. These figures make New Jersey one of the top-ranked states for unemployment claims in the U.S.

Initially, when New Jersey Governor Phil Murphy implemented the shutdown on March 16, casinos were prepared to offer compensation plans for their employees. However, in light of the continued suspension, the move to the fire/rehire scheme was chosen.