Some Atlantic City Casinos May Not Survive Hurricane Sandy Aftermath

Sunday, 25 Nov 2012 10:47 AM

By Sandy Fitzgerald

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Analysts are questioning whether all 12 of Atlantic City’s casinos will end up surviving Hurricane Sandy, even though their buildings were largely spared from most of the storm’s wrath.

The casino industry was already in trouble in Atlantic City long before the storm hit, because of increasing competition from casinos in neighboring states and a declining economy, reports the Bergen County Record. But when Sandy came ashore, the casinos were forced to close for five to seven days, and they lost millions of dollars.

Even though the casinos have re-opened, gamblers aren’t yet flocking back. Initial reports of damages to the famous Atlantic City boardwalk said it was far more damaged than it really was, which may have kept gamblers away, and much of the customer base is busy rebuilding after the storm and does not have the money to spend gambling.

Joseph Weinert, senior vice president of Spectrum Gaming Group near Atlantic City, noted the gambling market is now down 40 percent from its peak levels, but the city still has the same number of casinos. And while some properties have a margin for error, others won’t be able to last and he would not be surprised to see at least one casino close this coming year.

Atlantic City’s casino revenues have dropped during each of the past six years, from $5.2 billion in 2006 to $3.3 billion in 2011, and the hurricane just made matters worse.

Moody’s Investors Service released a pessimistic report the week after Sandy blew through, predicting Atlantic City casinos would be among the companies hardest hit. Moody’s said that earnings could drop by 25 percent over the next two quarters.

The casino losses will also be felt statewide. Officials said decreased tax revenues will dampen Republican Gov. Chris Christie’s plans for a state tax cut.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

James Foley's Family: Pope's Call Comforted Us

Friday, 22 Aug 2014 12:19 PM

The parents of slain American journalist James Foley said a call from Pope Francis gave the family great comfort followi . . .

Yellen: Fed Sees 'Significant' Under-Use of Labor Resources

Friday, 22 Aug 2014 10:22 AM

Federal Reserve Chair Janet Yellen said slack remains in the U.S. labor market even after gains made during the five yea . . .

Russia Convoy Enters Ukraine Without Kiev's Consent

Friday, 22 Aug 2014 10:17 AM

Russia's decision to send a convoy of aid trucks across the border into eastern Ukraine without Kiev's consent or an esc . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved