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How Nevada Is Pushing to Generate Jobs Beyond the Casinos

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Before the pandemic brought everyday life to a halt, Joe Kiele supported himself through the industry that dominates Nevada’s economy. He waited tables at a steakhouse inside a casino in Reno.Four years later, Mr. Kiele, 49, remains in Reno, yet he now spends his workday inside a factory. In place of worrying about the doneness of a customer’s rib-eye, he trains people on the proper handling of industrial chemicals.His employer, Redwood Materials, is constructing an enormous complex across a lonely stretch of desert. There, the company has begun recycling batteries harvested from discarded smartphones and other electronics. It extracts critical minerals like nickel, lithium, copper and cobalt, and uses them to manufacture components for electric vehicle batteries.Not coincidentally, the plant sits only eight miles from a major customer — a Tesla auto factory.Mr. Kiele’s shift from restaurant server to chemical operator parallels a transformation long championed by Nevada’s leaders seeking to make their economy more diverse, reducing its reliance on the hospitality industry for jobs. In recent years, they have tried to secure investment from companies engaged in the transition toward green energy.The Redwood Materials plant, which occupies roughly 300 acres and is expected to require some $2 billion in investment over the next decade, looms like a monument to Nevada’s aspirations. For the employees, the factory is evidence that there are ways to pay bills besides dealing cards and delivering food.“We’re not based on consumerism,” Mr. Kiele said. “We’re dealing with industry.”This is not the first time that Nevada has sought to broaden its economy. The state has a history of betting its fate on the bounty flowing from a single industry.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Why Are Americans Wary While the Economy Is Healthy? Look at Nevada.

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    Toni Irizarry recognizes that the economy has improved. Compared with the first wave of the pandemic, when Las Vegas went dark, and joblessness soared to levels not seen since the Great Depression, these are days of relative normalcy.Ms. Irizarry, 64, oversees a cafe at the Orleans Hotel and Casino, a property just off the Las Vegas Strip that caters mostly to locals. Guests have returned, filling the blackjack and roulette tables amid the cacophony of jingling slot machines — the sound of money.She started in the hospitality industry busing tables when she was only 16. Her paychecks have allowed her to purchase a home, raise three children and buy each of them their first car. But as she contemplates the future, she cannot shake a sense of foreboding.The outlook of people like Ms. Irizarry could be crucial in determining who occupies the White House. Nevada is one of six battleground states that are likely to decide the outcome of November’s presidential election. Its economic centerpiece, Las Vegas, was constructed on dreams of easy money. That proved a winning proposition for generations of working people, yielding middle class paychecks for bartenders, restaurant servers, casino dealers and maids. Yet over the last two decades, a series of shocks have eroded confidence.Nevada remains heavily reliant on the willingness of people around the world to spend their money at casinos, restaurants and entertainment venues.First, a speculative bonanza in real estate went spectacularly wrong, turning the city into the epicenter of a national foreclosure crisis. The Great Recession inflicted steep layoffs on the hospitality industry, demolishing the notion that gambling was immune to downturns. Then in 2020, the pandemic turned Las Vegas into a ghost town.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Las Vegas Unions and MGM Resorts Reach Tentative Labor Agreement

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    The deal, the second in two days with a major resort operator, was announced on the day before a strike deadline set by two major unions.Two unions representing hospitality workers announced on Thursday a tentative labor agreement with a second major Las Vegas hotel operator, MGM Resorts International, a day before a strike deadline set by the unions.Culinary Workers Union Local 226 and Bartenders Union Local 165 said a deal had been reached on a five-year contract covering 25,400 workers at MGM Resorts, which runs eight Las Vegas properties: the Aria, Bellagio, Excalibur, Luxor, Mandalay Bay, MGM Grand, New York-New York and Park MGM.The unions, which are affiliates of UNITE HERE, announced on Wednesday that they had struck a deal with Caesars Entertainment, another major resort operator in the city.The unions said last week that their members would go on strike if an agreement with the city’s three main resort operators was not reached by Friday. The unions are still negotiating with Wynn Resorts.The unions have been negotiating with the resorts since April. The agreement would avert a strike at MGM’s resorts, although the unions’ members still need to ratify the new contract.Ted Pappageorge, the head of Local 226, said in a statement that with the new deal, MGM workers “will be able to provide for their families and thrive in Las Vegas.” The unions said the agreement with MGM included the largest wage increases “ever negotiated in Culinary Union’s 88-year history,” a workload reduction for some members and increased safety protections, among other benefits.“We’re pleased to have reached a tentative agreement that averts a strike, gives our culinary union employees a well-earned boost to pay and benefits and reduces workloads,” Bill Hornbuckle, the chief executive of MGM Resorts, said in a statement.It’s not yet clear how big of a pay increase union members will receive, but Mr. Hornbuckle, told analysts on an earnings call Wednesday that a deal would result in “the largest pay increase in the history of our negotiations with the culinary union.” He added that the company would harness “technology and process improvements to help offset the incremental labor costs we expect.” The deal with the union includes some protections from new technologies that would affect their jobs.The deals with the resort operators were reached about a week before the Las Vegas Grand Prix, a Formula 1 race that winds through the Strip, where most of the resorts are. The event promises to be a major moneymaker for the city’s hospitality industry: Mr. Hornbuckle said his company had sold more than 10,000 tickets to the event and expected to attract $60 million in extra hotel revenue that weekend. More

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    Times Square May Get One of the Few Spectacles It Lacks: A Casino

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    The battle to win a New York City casino license has heated up in Manhattan, with real estate and gambling giants offering competing proposals for Times Square and Hudson Yards.Times Square, New York City’s famed Crossroads of the World, could hardly be considered lacking. It has dozens of Broadway theaters, swarms of tourists, costumed characters and noisy traffic, all jostling for space with office workers who toil in the area.Now one of the city’s biggest commercial developers is pitching something that Times Square does not have: a glittering Caesars Palace casino at its core.The developer, SL Green Realty Corporation, and the gambling giant Caesars Entertainment are actively trying to enlist local restaurants, retailers and construction workers in joining a pro-casino coalition, as the companies aim to secure one of three new casino licenses in the New York City area approved by state legislators earlier this year.The proposal has enormous implications for Times Square, the symbolical and economic heart of the American theater industry, and a key part of the city’s office-driven economy. Although foot traffic in Times Square was almost back at 2019 levels during recent weekends, theatergoers and office workers have been slower to re-embrace a neighborhood where violent crime has risen.Overall attendance and box office grosses on Broadway are lagging well behind prepandemic levels, and there is considerable anxiety within the industry about how changes in commuting patterns, entertainment consumption and the global economy will affect its long-term health.A casino in Times Square faces substantial obstacles. There is already a competing bid for a casino in nearby Hudson Yards from another pair of real estate and gambling giants, Related Companies and Wynn Resorts.And with casino bids also taking shape in Queens and Brooklyn, there is no assurance that the New York State Gaming Commission will place a casino in Manhattan, let alone Times Square, one of the world’s more complex logistical and economic regions.Few things change in Times Square without notice or protest. When the city installed pedestrian plazas in the area more than a decade ago, the move was widely condemned and even lampooned by late-night talk show hosts, before being eventually embraced as an innovative foray in urban design. When the neighborhood’s army of costumed characters gained a reputation for aggressive solicitation, the city restricted them to designated “activity zones,” raising free speech concerns.Now critics worry that putting a casino at 1515 Broadway, the SL Green skyscraper near West 44th Street, would alter the character of a neighborhood that can ill afford to backslide toward its seedier past, and further overwhelm an already crowded area.In a copy of a letter soliciting support for the casino, which was obtained by The New York Times, the companies promised to use a portion of the casino’s gambling revenues to fund safety and sanitation improvements in Times Square, including by deploying surveillance drones.Yet the idea of a casino has already found an influential opponent: the Broadway League, a trade association representing theater owners and producers. On Tuesday, the league sent an email to its members saying it would not welcome a casino to the neighborhood.“The addition of a casino will overwhelm the already densely congested area and would jeopardize the entire neighborhood whose existence is dependent on the success of Broadway,” the league said in a statement. “Broadway is the key driver of tourism and risking its stability would be detrimental to the city.”The congestion in Times Square is both a closely watched sign of vibrancy and a potential irritant, particularly for commuters and theatergoers who sometimes cite the crowds and the cacophony as reasons to stay away.For New York, Times Square is an important financial engine — the city relies heavily on tourists to spend money at the neighborhood’s hotels, restaurants, stores and entertainment venues.There are ample indicators that Broadway is still struggling: Several productions, including “The Phantom of the Opera,” which is the longest-running Broadway show in history, and “A Strange Loop,” which won this year’s Tony Award for best musical, have announced plans to close.Last week, there were 27 shows running on Broadway, seen by 225,731 people and grossing $29 million; in the comparable week in October 2019, before the pandemic, there were 34 shows running that were seen by 286,802 people and grossed $35 million.Still, the Actors’ Equity Association, the labor union representing actors and stage managers, is among those supporting the casino bid, suggesting a contentious road ahead for a proposal that will face a lengthy approval process.“The proposal from the developer for a Times Square casino would be a game changer that boosts security and safety in the Times Square neighborhood with increased security staff, more sanitation equipment and new cameras,” Actors’ Equity said in a statement. “We applaud the developer’s commitment to make the neighborhood safer for arts workers and audience members alike.”The simmering tensions between local power brokers, months before the formal bidding process has even begun, foreshadow the fight ahead for developers hoping to cash in on what could become the most lucrative gambling market in the country, at a time when traditional office-using tenants have become more scarce.A state committee formed this month to review casino applications said the process would open by Jan. 6, and that no determinations on locations would be made “until sometime later in 2023 at the earliest.”In their letter seeking support for the casino, SL Green and Caesars said that gambling revenues could be used to more than double the number of “public safety officers” in Times Square and to deploy surveillance drones.The letter said a new casino would result in more than 50 new artificial intelligence camera systems “strategically placed throughout Times Square, each capable of monitoring 85,000+ people per day.” The safety plans were developed by former New York Police Commissioner Bill Bratton, according to SL Green.Mr. Bratton did not respond to a request for comment.“As New Yorkers, it’s incumbent on us to keep making sure Times Square is keeping up with the times, and doesn’t go back to what I’ll call the bad old days of the ’70s or the early ’90s,” said Marc Holliday, the chief executive of SL Green. “And we all remember what that was like, when it comes to crime, and, you know, open drug use.”The casino is expected to include a hotel, a wellness center and restaurants, right above the Broadway theater that is home to “The Lion King” musical and a stone’s throw from the site of the ball drop on New Year’s Eve.Earlier this year, the state authorized up to three casino licenses for the New York City region. Legislators have touted the union jobs, tourists and tax revenue that a casino would attract, citing the fact that the bidding for each license will start at $500 million.Two existing “racinos” — horse racetracks with video slot machines but no human dealers — are considered front-runners for two of the three licenses: Genting Group’s Resorts World New York City in Queens and MGM Resorts International’s Empire City Casino in Yonkers, N.Y.The competition for the third license features many of the country’s major casino companies. Steven Cohen, the owner of the New York Mets, has been talking with Hard Rock about a casino near the baseball team’s stadium in Queens. Las Vegas Sands has been finalizing plans for its preferred casino location in the area, and Bally’s Corporation has been scouting for a development partner.The Wynn-Related proposed casino would be on the undeveloped western portion of the Hudson Yards, which was supposed to be completed by 2025 and include residential units and parks. Related, the developer of Hudson Yards, said it plans to fulfill all of its prior housing and public space commitments for the area.In a private pitch deck obtained by The Times, Wynn and Related wrote that Hudson Yards, near the Javits Center, was the ideal location to target “diverse upscale” guests for a casino resort complex.“Because it attracts the upper tier of gaming consumers, Wynn is able to dedicate less than 10 percent of its resort space to gaming, yet still generate significant gaming revenue and tax benefits for municipalities,” reads a slide in the deck.The deck also features photos of an outdoor man-made waterfall — and of a couple enjoying cocktails while watching a cigarette-holding animatronic frog, apparently from Wynn’s “Lake of Dreams” show.In their pitch letter, SL Green and Caesars said the casino was a “once in a lifetime opportunity to once again solidify Times Square as the world’s greatest entertainment area.”Community support is an integral ingredient to winning state approval for a casino license.The Broadway League’s “influence and clout and understanding of what theatergoers want is crucial to the future of Times Square, and if they’re opposing this proposal, I don’t see how it proceeds,” said Brad Hoylman, the state senator representing the district that encompasses Times Square.But Andrew Rigie, president of the New York City Hospitality Alliance, which represents the city’s restaurants and bars, said the group would support a casino in Manhattan if it used local restaurant operators or provided vouchers to nearby eateries. A major question surrounding the economic impact of casinos is whether they incentivize guests to stay and eat inside the building, which could hurt surrounding businesses.Alan Rosen, the owner of Junior’s Cheesecake, a restaurant chain with locations in Times Square and at the Foxwoods Resort Casino in Connecticut, said he was unconcerned.“I can’t see it hurting my business,” he said. “Look at Las Vegas. What do people do? They eat. They go to shows. It’s a lot more than gambling these days.” More