Trump Plaza recently confirmed that it will close its doors in September. Trump Casino is one of three Atlantic City casinos that will have closed by the end of the year.
The news is discouraging to the employees that are about to lose their jobs, but few experts were surprised by the announcement. The casino has been on the verge of bankruptcy for the past several years. Trump Plaza launched an online gaming site with Betfair in November. The company hoped that offering online gambling would help offset some of its losses, but it has been least popular online gaming brand in Atlantic City.
Industry experts warn that the closure raises long-term concerns for the state’s land-based and online gaming market. Many economists and government officials are worried about the implications of the faltering gaming industry. State Senator Jim Whelan said that the closure will negatively impact every sector of the city’s economy.
The Atlantic Club Casino Hotel was the first to shut down in January. Experts hoped that the remaining casinos would be able to avoid bankruptcy, but that clearly hasn’t been the case. Nearly 8,000 casino employees are expected to lose their jobs by the end of the year.
The faltering casino industry may have a negative impact on the future of the online gambling industry. Governor Chris Christie signed the online gambling bill because he hoped that it would help save Atlantic City’s faltering casinos. He insisted on a ten-year trial period to see what impact online gambling had on the state and the gaming industry. Future lawmakers may be hesitant to reenact the law if it doesn’t appear to have benefited the state.
The law also restricts online gaming to the state’s casinos. The market will become less competitive if more casinos close down, which could make it less appealing to players.