The New Jersey casino industry has been on the verge of bankruptcy over the last several years as Atlantic City casino revenue has decreased significantly. Industry leaders have stated that at least three companies are probably going to shut down this year.
The Atlantic Club was the first of the twelve casinos to close its doors. The city’s eleven remaining casinos hoped that the closure would boost their own businesses. While some of the Atlantic Club’s players found refuge with remaining casinos, it hasn’t had a strong impact on the market. Two other casinos intend to close their doors in the next couple of months.
Revel Entertainment is trying to sell its casino. The company hasn’t found a prospective buyer so far. A spokesperson said that the casino will be closed if it isn’t sold in the near future.
Caesars Entertainment operates four casinos in Atlantic City. The company stated that it plans to shut down the Showboat on August 31. Caesars hopes that the remaining casinos will fare better after competition declines.
Mayor Don Guardian said that Atlantic City is undergoing significant changes. The casino industry used to be the city’s primary attraction. However, it is slowly transitioning to a multi-faceted tourist destination. Guardian said that the change is both difficult and necessary.
Casino executives are optimistic that the market will begin to turn around in the future. They expect to break even on online gambling revenues by the end of the year. Their sentiments are shared by experts from Fitch Ratings and other financial analysts. Fitch said that the industry was over-saturated and will be more profitable once some of these casinos close down.
However, land-based casinos are still facing competition from Pennsylvania and other neighboring states. The Atlantic City casino industry may still remain depressed for years to come.