The dynamic in Atlantic City has led us to the difficult but necessary decision to close Showboat in an effort to help stabilize our business there and support the viability of our remaining operations in the vicinity.”Īnalysts and casino executives say the painful contraction that is shrinking Atlantic City’s casino market is exactly what the city needs in order to survive. “Since 2006, revenue in Atlantic City has declined by more than $3 billion and competition in the city has increased. Gary Loveman, Chairman, CEO and President of CZR, commented on the industry competition. The city began this year with 12 casinos, but now only eight remain. Atlantic City has attempted to lure more visitors to its casinos with promotions like free stays and meals.Įarlier this year, Trump Plaza, Atlantic Club, and Revel Casino Hotel also closed in Atlantic City. Plus, New Jersey’s Atlantic City faced severe competition from Pennsylvania, which became the second biggest U.S. Factors that negatively affected the company’s overall revenue over the years include severe weather conditions that caused temporary closures of some of its properties and lower visitation due to competition in the regional markets, especially on the Atlantic Coast. The above chart shows that CZR’s yearly revenues have decreased since the leverage buyout (or LBO) in 2008 amid financial meltdown.
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