Embracing Family and Employee-Ownership: The Eureka Casinos Story

When Eureka Casinos became the first 100% employee-owned hospitality company in the U.S. in 2016, the move was much more than simply a business strategy.

Our company was founded in 1997 by our Chairman, Greg Lee, and his family. The decision to sell the company to our employees reflected a deeper philosophy — a way of life that today permeates every facet of our company. It’s a testament to the power of family, shared purpose, and the potential within each individual. Our journey toward employee ownership began when Greg and I made a startling observation.

The traditional approach to retirement savings was not resonating with our workforce. In 2016, nearly 20 years into the operation of the Eureka Casinos, less than 16% of our employees were actively participating in our 401(k) plan. Even fewer had any meaningful balances in their retirement savings accounts. This meant that, even though we had many wonderful employees who had given us the majority of their working years, almost none were prepared to enjoy retirement. The hospitality and service industry is one of the lower-paying industries in our country, making it difficult for many employees to save for retirement. While we were making great strides in advancing the business, our people were not getting any closer to financial independence.

As a family business, this realization was a heavy burden. Greg and I knew we needed a paradigm shift, a path to true alignment, a way to empower our people and ignite a passion for their financial future. That shift came in the form of an Employee Stock Ownership Plan (ESOP). We were fortunate to have a friend at the time who was researching what an Employee Stock Ownership Plan entailed. It turned out that the IRS had established a truly remarkable framework back in the 1970s. (visit website to read more)