Atlantic City Casinos Bracing For A Financial Disaster

Casinos in Atlantic City were being rebuilt. Some of them were to be knocked down and rebuilt, while other new casinos were in the works. Now, all of those plans appear to be in danger.

At a time when Atlantic City was set to make a resurgence, it now looks like the casinos that are currently occupying the city could be in danger of extinction. The market has hit the casinos hard, and it is unknown whether they will survive.

Pinnacle was supposed to be starting a billion dollar project in the city. Last week, they put those plans on hold indefinitely thanks to the economy. They also acknowledged that the project could be in permanent danger.

"With Atlantic City, we recognize that this isn't an environment to go dream big. We are going to sit in Atlantic City. We may be sitting there for a very long period of time," said Pinnacle Chairman and CEO, Dan Lee.

Pinnacle has suggested that given the current state of the economy, they would consider selling the property on which the resort was supposed to be built if they were to get the right offer.

Pinnacle's announcement comes at a time when the other casinos in the city are laying off workers. Cost cutting is essential in these tough times, and on Monday that cost cutting could reach a new level.

September revenue numbers were by far the worst decline the city has ever seen. Monday the October revenue figures come out and casinos in the city are bracing for the worst. It is unknown how much longer some of these casinos can survive under the current economy.

November 10, 2008
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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