Gambling in Atlantic City shows further decline

That gambling is far from being recession-proof was once again obvious by the gambling reports from the Atlantic City casinos. February numbers pointed to a missive 19.2% decline in revenue compared to the same time in 2008, aggregated from the 11 casinos operating in the city, something the New Jersey Casino Control Commission calls the worst monthly decline in the 30+ years gambling has been legal in New Jersey. And the future of casino gambling in Atlantic City is far from brighter, after the massive gambling revenue decline was paired with the constant stream of bad news coming out of the local casinos. For starter, three of the AC casinos, those operated by Trump Entertainment, have already filed for bankruptcy protection in February after failing to meet obligations thanks to the deteriorating gambling traffic to the city, following one of the deepest recession ever to hit the United States. Everyone knows that things are bad, but when the casinos start find themselves bankrupt, the situation is obviously dire.

In addition to the three casinos filing for bankruptcy, other gambling companies are scraping further casino development in Atlantic City. Pinnacle Entertainment has postponed a casino beach front resort with price tag of $1.5 billion indefinitely, while MGM Mirage, which is seriously struggling in Las Vegas, as well, is also cancelling all further developing and expansions.

Published on 03/19/2009