Closed Atlantic City Casinos offer Promise for the Market
At first glance, the fact that October Atlantic City casino revenue was down 4.4% from last year seems like a bad thing. However, when looking deeper into the matter, it bodes well for the future of Atlantic City.
That’s because the October 2013 revenue figure – $216 million – represents a time when 12 casinos were operating throughout the city. However, four casinos have closed this year, meaning the October 2014 figure of $207 million only represents eight casinos. So this shows that there may be hope for the remaining Atlantic City casinos in a stabilizing market.
It used to be that the East Coast gambling mecca had a monopoly on the area. This is a big reason why Atlantic City casinos reached a peak of $5 billion in gaming revenue by 2006. However, surrounding states like New York and Pennsylvania began opening casinos, which largely took away some of Atlantic City’s prime customer bases. Because of this, many industry analysts said that the town needed some of its casinos to close before the market could rebound again.
So far, Atlantic Club, Revel, Showboat and Trump Plaza have all shut down. And Trump Taj Mahal is teetering on the brink of closing, depending upon how everything works out between the casino owners and union workers. The owners got a court to approve taking away worker health benefits and pension plans – a move that the casino claimed was necessary to stay open. However, the union is currently fighting the court order to get the benefits back.
Regardless of what happens with Trump Taj Mahal, though, it seems like the Atlantic City casino market could finally be reaching an end to their constant revenue struggles. But that’s certainly not to say that we won’t see another Atlantic City casino or two close in the near future.