$20 Million a Day Losses for Atlantic City Casinos

Total revenues in atlantic city casinos is expected to experience a painful $20-million loss per day, potentially resulting in the termination of thousands of jobs, after a budget conflict in New Jersey compelled operators to close shops.

All 12 of Atlantic City's casinos closed in early July after Gov. Jon Corzine was forced to shut down non-essential services as a result of a major budget conflict.

Corzine had wanted to help close the state's $4.5 billion budget deficit by raising the sales tax one percentage point to 7%. Corzine was reported as saying that he did not have the authority to exempt casino regulators from the non-essential shutdown.

Meanwhile, a Court of Appeals has rejected a plea by casinos to stay open, as casinos must have state-employed regulators assigned to run the business.

The situation in Atlantic City developed in the midst of speculation that exorbitant gas prices and increasing interest rates might have already been persuading the public against gambling.

Trump Entertainment shares were immediately down by almost 5% after the shurdown. Trump Entertainment owns three casinos in Atlantic City.

Casinos pull millions of dollars in taxes for New Jersey. With the recent development, industry players are wary of how the closing of casinos could leave lasting detrimental effects to the city.

Major casino operators affected include Borgata Hotel Casino and Spa, MGM Mirage and even Harrah's Entertainment Inc., ultimately the world's biggest gaming operator.




main Categories
Click the links below to view our main categories

Close