Atlantic City rocked by spate of casino closures.
The Jersey shore resort of Atlantic City, once dubbed the “Vegas of the East” has been rocked by a series of casino closures, since losing its monopoly on gaming in the area. Since 1978, visitors have been heading to the resort, which was America’s only legal gambling resort outside of Las Vegas. The latest casualty in the downturn is the famous Trump Plaza which will close on September 16th. The casino is the third to shut within a fortnight, leaving an estimated 6000 casino workers struggling to find employment in the economic downturn.
The closure of Trump Plaza has been particularly significant as it was probably the best known casino in the area. Its gaudy neon signs welcomed visitors to “Americas Playground” but the slots have fallen silent, and only the occasional visitor crosses its threshold. In a worsening economy and the ability of neighbouring States to now offer gambling, the once famous icon of the American Dream has now become a casualty of the American nightmare.
Much of the economy of Atlantic City has relied on the gambling industry for many years. Visitors were bussed in from neighbouring states, offered complimentary food and entertainment and then ferried home again. In 2006 casino profits were an estimated $5.2 billion whereas in 2013 profits were just $2.8 billion. Casinos provided approximately 70% of the state income, yet now it is estimately that 60-70% of the resorts casino are either closing or on the brink of collapse.
“Atlantic City is getting clobbered – 75 per cent of the casinos are bankrupt or going through bankruptcy,” stated Donald Trump, the entrepreneur credited with breathing life into the resort in the mid 1980’s. “The other 25 per cent are on the respirator.”
The governor of New Jersey, Chris Christie, called an emergency summit to try to halt the resorts rapid decline. Part of the governors plan is to try to move the economy away from its dependence on gambling, and explore other potential sources of revenue. Las Vegas has adopted a similar strategy with some success, with visitors lured by huge shopping malls and shows.
“Important signs are evident of the progress taking hold in the non-gaming development and economic activity we are seeing in Atlantic City, including businesses opening, attractions being added, and key non-gaming revenue streams rising,” Mr Christie announced.
