(Newswire.net — September 2, 2014) — A Wall Street firm predicted Friday that much of the revenue generated by three Atlantic City casinos that are closing will remain in the city after they’re gone.
The firm also predicted that a good chunk of the money being won by the Showboat, Revel, and Trump Plaza, will go to the surviving Atlantic City casinos. Showboat and Revel are closing this weekend; Trump Plaza shuts down Sept. 16. After that, Atlantic City will have eight casinos.
The closure of Atlantic City’s landmark Revel Hotel this week is a sad milestone for the city, as the newly opened, $2 billion hotel and casino, was expected to bring a much-needed boom to the region.
The massive hotel opened in 2012 with 3,800 hotel rooms, many overlooking the Atlantic Ocean, along with 10 freshwater and saltwater pools, restaurants, nightly entertainment and a spa.
The hotel and casino, however, was plagued with financial troubles from the beginning, and declared bankruptcy twice before announcing it would close this week. Owners said they were unable to find a buyer for the hotel.
After a 27-year-run on the Atlantic City Boardwalk, the Mardi Gras-themed Showboat Casino Hotel closed its doors. Yomary Blanco and her husband are among the 5,000-plus casino workers who are about to lose their jobs.
“It’s sad to see it go,” she said. “We couldn’t believe it, you know. We couldn’t believe it was actually happening.”
Ronnie Downing works as a kitchen steward at Revel Hotel and Casino. It will close Tuesday morning.
“We all have to go through this,” she said. “Weather this storm. We are used to this in Atlantic City. Whether it is an economic storm or a natural disaster, we have to come together, workout the problems and get organized and move forward.”
However, not everyone feels the impact of the casino closures the same way.
“After the Atlantic Club closed, places like the Tropicana and the Golden Nugget are doing very well, and we had a great summer. While Revel has had a very difficult time, you have properties in Atlantic City that will become more profitable,” said Joe Lupo, senior vice president of the Borgata Hotel Casino & Spa.
Though the city and the state is providing employment support, Pastor David McGettigan said providing peace of mind falls under his department.
“This might be the silver lining out of Superstorm Sandy,” McGettigan said. “That we are more ready for something like this, and to let people know that you are not going to go under. We didn’t go under from Sandy, and we’re not going to go under from this.”
Atlantic City remains one of the few places in the populous tri-state area to offer a full suite of eat-play-and-stay options, and has by far the lowest gaming taxes. Lower taxes give these casinos more room in the margin to spend on promotional activity, including free food and hotel stays.