Aug 29 Four Atlantic City casinos are closing
this year, but not all of their gamblers will return to visit
eight others that have survived in the down-on-its-luck New
Fitch Ratings analyst Alex Bumazhny said on Friday that some
gamblers are expected to choose instead casinos in their
home-states. The casinos remaining open in Atlantic City are
likely, however, to garner about 60 percent of the revenues that
had been generated by the four closing casinos, Bumazhny said.
A third of Atlantic City's casinos have closed or soon plan
to. The city's newest casino and arguably its biggest failure,
the $2.4 billion Revel Casino Hotel, is in its second
bankruptcy after opening in 2012. It is closing on Tuesday.
The Showboat Casino Hotel, a Caesars Entertainment Corp
property, will shut down on Sunday morning, and Trump
Plaza Hotel and Casino is due to close in
mid-September. Atlantic Club Casino Hotel was shuttered in
Those four generated $457 million through the 12 months that
ended in July. About $280 million will likely be recaptured by
surviving casinos, Fitch's Bumazhny said in a comment, with more
than half going to properties owned by Ceasars.
Some of the closed casinos catered to low-margin gamblers,
offering excessive promotions. The remaining casinos are less
likely to target those customers with such incentives, and
instead will remain focused on high-end gamblers, Bumazhny said.
Even some of those big-spenders might simply choose other
places, such as the Sands Casino Resort in Bethlehem,
Pennsylvania, owned by Las Vegas Sands Corp. Remaining
Atlantic City casino hotels also have limited room capacity and
are sometimes already full on weekends.
All of Atlantic City's casinos combined earned $2.7 billion
in revenues over the year that ended in July. Fitch does not
expect any more casinos to close over the next two years,
He said the industry will still earn about $2.5 billion in
2015, but it will deteriorate in the coming years to about $2
billion because of increased competition from neighboring
But Atlantic City will remain attractive, according to
Bumazhny. He said it is one of the few places in the New
York-New Jersey-Connecticut area to offer a complete package of
places to eat, play and stay, and has "by far" the lowest gaming
tax in the region at 9.25 percent.
(Reporting by Hilary Russ in New York; Editing by Grant McCool)