Waterford - Peter Pan Bus Lines will lay off about 40 drivers when Foxwoods Resort Casino ends its employee shuttle service at the end of this month and will close its facility here by the end of April, the division's general manager said Tuesday.

About half of the 80 people who work at the division's depot on Fargo Road will be offered a transfer to Peter Pan's Rocky Hill facility or another company location, Colin Johnson said. Maintenance workers, bus cleaners, charter drivers, mechanics and some managers will have the opportunity to transfer, he said.

Drivers who work the Foxwoods shuttles — which primarily run between Norwich and the casino — have been notified that their last day will be Feb. 29, the day the shuttle service ceases.

"The reason is entirely due to the loss of revenue from the Foxwoods employee shuttles," Johnson said of Peter Pan's decision to close the Waterford depot. "We're really here to service Foxwoods, and without that revenue it makes more sense to consolidate our operations in Rocky Hill, about 40 minutes away."

Peter Pan also has a facility in Providence.

Foxwoods announced in early January that it would stop providing the free employee shuttles that operate daily from two Norwich lots and on weekends and holidays from Route 2 lots adjacent to Interstate 95 in North Stonington and west of Route 78 in Stonington. The casino had first curtailed employee shuttle service in 2010 when it discontinued service from a Groton lot and eliminated weekday runs from the North Stonington and Stonington lots.

The shuttles make hundreds of trips daily.

Peter Pan has provided the shuttle service under contract to Foxwoods since the casino opened in 1992.

Foxwoods' announcement that it would end the Norwich shuttle service prompted several private companies, including Peter Pan, to approach Foxwoods about providing a pay service. While Peter Pan has investigated such a service for Foxwoods employees only, other companies have reportedly proposed public service between Norwich and the casino.

Southeast Area Transit officials also have contacted Foxwoods about filling the void, SEAT officials say.

Any company providing transportation between Norwich and Foxwoods would need the Mashantucket Pequot Tribe's permission to pick up and drop off passengers on its property. The tribe, which owns Foxwoods, owns the land where the main Norwich commuter lot is located on Route 2.

Peter Pan, based in Springfield, Mass., opened its Fargo Road depot near the junction of Interstate 395 and Route 85 in 1998. The facility consists of four working bays and a bus-washing bay, according to Johnson.

b.hallenbeck@theday.com