Showboat Casino Atlantic City to Close
Caesar’s Entertainment have announced that the Showboat Casino in Atlantic City will be closed later in the summer, as gambling revenues continue to fall in the country's third largest casino market. Caesar’s have stated that the Showboat’s doors will finally close due to, “persistent declines in the business levels in the area exacerbated by the high property tax burden in Atlantic City.” The closure of the Showboat follows the closing of the The Atlantic Club Casino and Hotel which was purchased by the Tropicana and Caesar’s after a bankruptcy sale, and immediately closed in an attempt to decrease the competition. There could very well be a third closure unless the new Revel Casino can find the right buyer in the near future as profits in the Garden State continue to fall.
The closure will have a big effect on Atlantic City and as a large employer over 2,000 people will lose their jobs, and although Caesar’s state that it was a very difficult decision, CEO Gary Loveman stated that it was a, “necessary step to help stabilize our business in Atlantic City and support the viability of our remaining operations in the vicinity.” This means that Caesar’s now own just the three casinos in Atlantic City, those being Bally's, Harrah’s and Caesar’s and only time will tell whether that number is reduced further and whether or not Caesar’s continue to consolidate. It’s not only land based gaming that’s struggling in New Jersey as regulated online gambling in the state continues to fail in getting anywhere near the revenue amounts that were predicted. Depositing problems are still being blamed and there’s also the fact that many online slots and casino games players are content playing at the many offshore online casinos that are available to them. Looks like tough times ahead for New Jersey gambling as a whole however it’s hoped that a good summer season can help fix a few of the immediate issues.