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ATLANTIC CITY, N.J. (AP) — Atlantic City’s top casino is laying off or cutting the hours of 422 workers in what it says is a direct reaction to strict new indoor dining limits imposed by Gov. Phil Murphy.

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The Borgata sent a letter to workers Friday afternoon outlining the cuts.

Casino president Melonie Johnson said the cuts were in response to limits that took effect Thursday night under which indoor dining must halt from 10 p.m. to 5 a.m.

The casino is laying off 73 workers and reducing the hours of 349 others.

Bob McDevitt, president of the main Atlantic City casino workers’ union, said he did not know of any other casino that had done layoffs since the limits were announced on Monday.

“Regrettably, due to the adjusted operations and overall impact of the pandemic on business, we’ve been forced to modify our staffing levels,” Johnson wrote in her letter to workers.

“We are hopeful to return employees to work and increase hours when the executive order is lifted, operations expand and business demand returns,” she wrote. “The governor has not yet announced when the order will be lifted so, unfortunately, we don’t know how long this may last and cannot fully assess any lasting impacts on our business levels.”

Murphy’s order came as the coronavirus rate of infection and number of cases climbs higher in New Jersey and across the country. He said Monday that Health Department officials say indoor settings make it easier for the virus to spread compared with outdoors.

To comply with the order, the casino is closing its restaurants each night at 10 p.m. It also must stop serving beverages on the casino floor, which will remain open around the clock.

In-room dining will be offered all day Saturday and Sunday, and from 4 p.m. to midnight on weekdays.

Laid-off workers will remain on the casino’s health insurance plan through Dec. 31.

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The Borgata Hotel Casino & Spa in Atlantic City said Monday it will remain closed later this week when gaming is allowed to resume following Gov. Phil Murphy’s decision to postpone the return of indoor dining over concerns about the coronavirus pandemic.

“We respect the Governor’s decision to postpone the reopening of indoor dining in New Jersey. Given this news, our property Borgata Hotel Casino & Spa in Atlantic City will remain closed,” a statement from MGM Resorts International said.

Our guests expect a special experience when they come to our property and if we cannot provide that level of hospitality, we feel it best that we remain closed until such time that the Governor lets us know it is safe to offer food and beverage,” the statement said. “The health and safety of our employees and guests are at the center of all that we do, and although we respect the decision we regret that we are unable to welcome back the thousands of employees who are anxious to return to work. We look forward to a time when it is safe to welcome everyone back.”

In a major reversal Monday, Murphy said the state would not move to allow indoor dining as planned Thursday as part of the state’s Phase 2 coronavirus reopening plan. Casinos in Atlantic City were also slated to reopen Thursday.

The governor pointed to recent scenes from expanded outdoor bar and restaurants in the state showing packed crowds without masks and patrons flouting social distancing as a reason to halt indoor dining indefinitely. The state’s previously-announced restrictions on indoor dining included 25% capacity limits, tables spaced 6 feet apart, face coverings for staff and other rules.

“Given the current situation in numerous other states we do not believe it is prudent at this time to push forward with what is, in effect, a sedentary indoor activity – especially when we know that this virus moves differently indoors than out, making it even more deadly,” Murphy said during his regular coronavirus briefing.

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“We have seen spikes in other states driven, in part, by the return of patrons to indoor dining establishments, where they are seated, and without face coverings, for significant periods of time,” the governor said. “We are also moved to take this step because of what we have seen in some establishments across the state of late.”

Matt Acro contributed to this report.

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Noah Cohen may be reached at ncohen@njadvancemedia.com.

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