Three Casino Closures to Hit Atlantic City
At the beginning of this year there were 12 casinos in Atlantic City. Now it is looking increasingly likely that there will be just 9 by the end of August.
The Atlantic Club has been taken down by two rivals, Revel has said it will close if a buyer isn’t found and Caesars Entertainment, which says there are too many casinos in the city, is planning to shut the Showboat at the end of August.
The Mayor of Atlantic City, Don Guardian, has said that, “although it is sad today, it’s part of the transition that Atlantic City needs to have.”
He went on to say that while it will be a painful transition “it’s critical for Atlantic City to realize we are no longer the monopoly of gaming on the east coast.”
Since 2006 revenues from Atlantic City’s casinos have fallen from $5.2 billion to $2.86 billion. It has experienced increased competition from Pennsylvania and further problems since new casinos appeared in New York and Maryland.
On the other hand Fitch Ratings saw a positive aspect to the news. In a note to investors the company wrote, “The closure makes financial sense for Caesars and is a positive for the oversupplied Atlantic City market.”