Loan Lenders Do Not Care About Smoking Ban At Atlantic City Casinos

It is one thing for Atlantic City casino owners to whine to the city about how a smoking ban was destroying their revenue figures. It is another when these same owners have to look their lenders in the eye and tell them they cannot make their loan payments.

The excuses that are buying AC casino owners time in their own city, are not being accepted by lenders. Several of the city's casinos have now missed interest payments on loans, and they are being told to find the money.

"These casino owners have enough pull to sway lawmakers in their city, but their pull means nothing to lenders. The smoking ban has been lifted in the casinos, and their revenue numbers have continued to drop. That is a strong sign that smoking was not at the root of the problem," said observer Orestes Consuelos.

Trump Entertainment Resorts and Resorts Atlantic City have both missed loan interest payments in recent months. Trump and Resorts are both attempting to renegotiate the terms of their loans with lenders.

The negotiations they currently are involved in will be much different than the ones that ended with the smoking ban being lifted. The lenders will not be as sympathetic as the city was. They have already been without their payments, and now hold the upper hand in the negotiations with the companies.

The casino revenue figures have been released for Atlantic City and for the second year in a row, after twenty eight years straight of revenue increase, there has been a drop. The total revenue drop for the year was 7.6% from the previous year.

January 9, 2009
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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