Beginning Of The End For Atlantic City Casino Industry Has Arrived

When Donald Trump throws up the white flag, everyone has to know there is something wrong. Not that "The Don" has always made the best of business decisions, but one kind of gets the feeling he new what he was doing when he pulled out of Trump Entertainment Resorts last week.

The company owns three casinos in Atlantic City and therein lies the problem. The Atlantic City casino industry is not the empire it once was, and may never be again.

Analysts are now predicting that three AC casinos could be eliminated in the next couple of years, That is three casinos out of the current eleven that are operating in the city.

"In our view, there is a distinct possibility that one to three casinos could be permanently closed in the next few years, particularly when many older locations are barely breaking even and, we believe, cannot be rehabbed to be economically viable," wrote analyst Joel H. Simkins of Macquarie Securities in a report.

The casinos themselves have acknowledged the troubles that may lie ahead. Some believe that current casinos may be closed, but that more are going to be built. Others, see the current economy as the end of Atlantic City as a casino mecca.

"There is too much expansion going on in states around New Je4rsey. That, coupled with the current economic climate, could signal the end of Atlantic City as we have come to know it,' said observer Jim Trexle.

Casinos in the city have seen steady drops in revenue over the past year. People are no longer coming out the way they used to, and others have simply cut back their gambling budget.

February 22, 2009
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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