Atlantic City's First Casino Could Be In Financial Jeopardy

Atlantic City casinos were supposed to be on their way back to the top of the industry by this time. Many had elaborate renovation plans and others were in the process of expanding. That was before the economic crisis turned everything upside down.

Now, Atlantic City casinos are in survival mode. Neighboring states have built casinos, and even longtime customers have changed their gambling locations. Now news comes of the city's oldest casino being in financial jeopardy.

Resorts Atlantic City has missed an important loan payment and the result could be devastating for the casino. The casino's parent company, Colony RIH Holdings Inc. is negotiating with the lender to come up with a possible solution to the problem.

If the company cannot come up with a sufficient plan with the lender, the whole amount of the loan, equalling $10 million, could become due. The company would then have to come up with all $10 million in order to satisfy the loan.

Regulators in Atlantic City have been made aware of the problem. They have been in contact with Resorts officials and are hoping that an agreement can be reached. The casino has been open since 1978.

In other Atlantic City casino news, Tropicana laid off fifty supervisors. That is a trend that is reaching casinos all across the country.

November 22, 2008
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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