Could this be the end for Caesars, Bally’s, Harrah’s and
Showboat? In a conference call with investors, CEO Gary Loveman said he's
"looking at all of our options to reduce the cost of doing business"
in Atlantic City, according to Bloomberg.
Loveman stopped short of saying that he's overtly trying to
close one of the casinos but said that "all the businesses in A.C. are
under tremendous pressure" and that "in some cases reducing supply is
the right answer.”
With declining spending in Atlantic City, bad weather, and a
rash of new casinos in Pennsylvania, New York and Maryland, Caesars' numbers
have suffered.
"The Atlantic Coast region continues to be negatively
affected by the competitive environment, compounded by lower property
visitation partially driven by extreme winter weather in 2014 as compared to a
milder 2013," the company said in its first quarter earnings report.
"As a result, net revenues in the region declined $50.0 million, or 13.7
percent, in the first quarter of 2014 from the year-earlier period."
In Atlantic City, Caesars casino revenues were down $44.4
million, or 14.3 percent.
Source: Philadelphia
Business Journal
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