Atlantic City to Lose Another Casino?
This has not been a good year for land based casinos in New Jersey’s Atlantic City. Revenue over all is down and now it has been claimed that another land based casino, the Trump Plaza is to close possibly as early as this September. This closure is expected to be confirmed next week when the casino’s employees will receive letters giving them notice. The Trump Plaza could be the fourth Atlantic City casino to close down this year.
Several Atlantic City casinos in difficulty
The year began with the closure of the Atlantic Club which had been bought by Caesars Entertainment. The next major casino to be in trouble was the Revel Casino Resort that opened in only 2012 but that had made losses from the very beginning. Revel is up for sale and if a potential buyer does not appear to buy the huge casino resort, it will close in August 2014. Last month Revel declared bankruptcy for the second time in its two year history. Caesars Entertainment was involved in another proposed casino closure when it announced in June that it will close the Showboat Hotel Casino
also in August. The Showboat like the Revel Casino Resort is up for sale.
Competition from within the state?
At the moment, after the closure of the Atlantic Club earlier this year, Atlantic City has 11 casinos but three more of these are in danger of closing by the end of the summer. Atlantic City is the only place in the state of New Jersey where gambling is permitted. However, this situation could change depending on whether the Governor, Chris Christie is prepared to enter discussions to allow casinos to be built in other parts of the state. Atlantic City
already faces competition from land based casinos in the near by states of Pennsylvania and New York. There is already interest by investors in opening casinos in other parts of New Jersey. One of these is a 4 and a half billion casino resort that Fireman Capital Partners have claimed they would be interested in constructing if casinos were permitted in Jersey City.
The Trump Plaza’s revenue fell by almost a quarter in May, which put it in last place among Atlantic City’s 11 casinos. Another problem that could arise if the Trump Plaza closes in September is that the casino has an online casino agreement with Betfair.
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