Atlantic City’s losing streak continued as another casino owner declared bankruptcy Tuesday.
But some analysts said the surviving casinos in the seaside town could see their luck change as their competition thins out.
Trump Entertainment Resorts Inc., which owns two Atlantic City casinos bearing Donald Trump’s name, filed for Chapter 11 bankruptcy protection. The Trump Plaza already was slated to close next week, and executives for the Trump Taj Mahal warned the property could close in November unless it receives concessions from its workers.
Three of Atlantic City’s 12 casinos already have shut down this year, struggling to fend off competition from newer casinos in neighboring states, such as Maryland and Pennsylvania. The closures mean the city could lose up to 8,000 of its 32,000 casino jobs, which would leave the famed boardwalk dotted with hulking, empty buildings.
Some analysts said the current mix of casinos, including three from Caesars Entertainment Corp. CZR +3.41% and one owned by Boyd Gaming Corp. BYD -1.10% and MGM Resorts International, MGM +0.09% might stabilize, now that many of their Atlantic City competitors are out of business. Funds controlled by activist investor Carl Icahn, which hold the first lien on Trump Entertainment, could benefit if the Taj Mahal manages to stay open.
“With the current capacity coming out of the market, it should really help the profitability of the remaining properties,” said Robert Shore, an analyst with Union Gaming Research. The supervisor drew his finger in a slashing motion moments after the final hand of blackjack was dealt at the unlucky Trump Plaza Hotel and Casino.
And with that, gambling was done.
The 30-year-old Boardwalk casino shut its doors at 6 a.m. Tuesday, becoming the fourth city casino to close this year. Beset by crushing debt, fleeing customers and run-down facilities, Trump Plaza had been the town’s worst-performing casino for years. Meanwhile, Donald Trump said he would consider taking back control of Trump Entertainment Resorts — if the price were right and he determined the casino could be viable. Carrying identification documents and bitterness over their sudden joblessness, hundreds of ex-casino workers began filing for unemployment Wednesday morning, the first attendees at an assistance center that expects to process 5,000 newly laid-off workers over the next three days. trump “donald trump” “trump plaza” casino casinos poker “online poker” gambling “atlantic city” u.s. “united states” usa america jobs employment unemployed hire “part time work” “las vegas” closed 2014 2015 hotel resort “hotel resort” nevada truth future humanity media press news entertainment salary “middle class” “american dream” money cash usd slots “slot machine” billionaire rich wealth wealthy “job agency” vegas roulette win competition lotto lottery jackpot blackjack “elite nwo agenda” alex jones rant infowars gerald celente trends in the news civil war american revolution homeless poverty charity casino scam real hustle bbc full cheat poker card counting 21 movie louis theroux las vegas documentary high roller shark poker night
The session at the Atlantic City Convention Center came after a brutal weekend that saw two casinos, the Showboat and Revel, close. Officials from the state Department of Labor and the main casino workers’ union, Local 54 of Unite-HERE, helped displaced workers file for unemployment and gave them information on signing up for health insurance and other benefits.
Appearing at the Yeshiva University in New York earlier this week, a prominent supporter of the GOP and backer of Mitt Romney during the last election cycle, Sheldon Adelson, said Obama should drop a nuke on Iran instead of negotiating with its new president, Hassan Rouhani. Jobs are created when businesses deploy their cash savings wisely. It is always the quality of investment that counts, not the quantity. If high quality investment opportunities are lacking, often because of government interference with the economy, businesses actually help us all by refusing to waste their cash on projects that will blow up in short order and just create even more unemployment in the long run.
When this false recovery, fueled by all the wasteful spending, blows up, as it will eventually, what will pull us out of the next crash? It will be those businesses and individuals who have refused to play at the casino, who have saved and put money away, who will be able to step in, invest, and start a genuine, not a phony, recovery process.