Key Challenges Facing Casinos in 2025 Part 1
The Workforce Squeeze Is Real. Here’s How Properties Can Stay Ahead.
Each year, Catalyst Marketing Agency surveys casino executives and general managers nationwide to get a pulse on the industry. The 2025 data is in and one theme leads the pack: labor.
Rising costs. Shrinking talent pools. Evolving employee expectations.
For many properties, these labor challenges aren’t just HR issues they’re operational risks.
This is the first in a three-part series unpacking the labor landscape and how forward-thinking casinos are adapting.
The Labor Landscape in 2025: What’s Changed?
Demand for workers continues to rise, but the supply of experienced, motivated talent isn’t keeping up. From frontline staff to back-of-house roles, staffing shortages are driving up costs and putting pressure on guest satisfaction.
At the same time, wage expectations have climbed. Labor unions are advocating for better pay and conditions. And with labor often the single biggest line item on a casino’s P&L, there’s no margin for missteps.
The Real Cost of Turnover
Turnover doesn’t just impact morale, it hits the bottom line. Every vacancy means lost productivity, increased hiring costs, and potential hits to guest experience.
That’s why leading properties are shifting from reactive hiring to proactive retention. Here’s what’s working:
1. Competitive Compensation Is Just the Starting Line
Wages matter, but they’re only part of the equation. Comprehensive benefits like health coverage, 401(k) matching, tuition reimbursement, and performance bonuses are now expected. Employees are seeking total value—a compensation package that supports not just their financial needs, but their health, career growth, and long-term stability. In other words, a holistic employment experience.
Companies with robust benefits see 45% lower turnover than those with minimal packages. (SHRM 2024 Employee Benefits Survey)
2. Employees Stay Where They Can Grow
Professional development is one of the most effective, yet underutilized, tools for retention. Employees want more than a job. They want a career path. Casino environments are fast-paced and multifaceted, offering a wide variety of career paths—from gaming operations and hospitality to marketing, security, F&B, and more. When employees see a clear path forward, they’re far more likely to stay invested.
68% of casino employees who received training reported higher engagement and loyalty. (AGA 2024: State of the States Report)
3. Recognition Isn’t Optional—It’s Strategic
Recognition drives morale, performance, and loyalty. It must be embedded into the culture, not treated as an afterthought or occasional shoutout. It needs to be intentional, frequent, and authentic—not reserved only for annual awards or leadership favorites. Every team member should feel seen and valued, from the front desk to the floor staff to the back-of-house support teams.
Casinos with strong recognition programs see 31% lower voluntary turnover. (Harvard Business Report 2024: The Power of Employee Recognition)
4. Transportation Support Can Boost Retention
Rising gas prices and long commutes are more than inconveniences, they’re real retention barriers, especially for rural casinos.
Some properties are responding with gas stipends for employees driving more than 20 miles one way, or offering discounts through partnerships with local gas stations. These programs have helped reduce absenteeism and improve morale.
Offering even modest fuel support can directly reduce absenteeism, improve retention, and strengthen employer reputation.
Tech That Supports Not Replaces Your People
Labor-saving technology isn’t just for guests. Behind the scenes, tools like AI-driven scheduling, automated onboarding, and self-service HR portals are helping streamline operations and improve the employee experience.
AI can optimize staff schedules in real time, cutting labor costs while keeping guest service levels high.
Bottom Line:
The labor challenges facing casinos in 2025 are too complex to solve with pay raises alone. The properties that will win in this environment are treating workforce strategy like business strategy—with creativity, data, and long-term thinking.
Here are four high-impact plays to consider:
- Bundle, Don’t Bolster: Don’t just raise wages, package total rewards in a way that speaks to what employees actually value. Build personalized comp and benefit bundles that scale across departments.
- Map the Employee Journey Like a Guest Journey: From onboarding to promotion paths, treat your staff experience with the same care you give the guest experience.
- Leverage Data to Predict (Not React to) Turnover: Use HR analytics to spot flight risk early—look at engagement trends, absenteeism spikes, and exit interview patterns to inform interventions.
- Think Like a Regional Employer Brand: In competitive labor markets, you’re not just hiring against other casinos—you’re hiring against Amazon, hospitals, logistics firms, and remote work. Position your property as a top employer in your region, not just your sector.
Good news is, the workforce challenges are real, but solvable.
The next era of competitive advantage in gaming won’t come from who has the flashiest floor or the biggest acts. It’ll come from who builds, keeps, and grows the strongest team.
This is Part 1 in our 3-part series. Up next: Market Saturation & Competition. Want to learn more? Catalyst is here to help. Contact us at info@teamcatalyst.com.