Atlantic Club Closing, Outlook for Atlantic City Not Good

[LLL]

ATLANTIC CITY - The new year is a crucial one for Atlantic City's future, and 2014 won't start auspiciously.

This is the fourth year of a five-year grace period Gov. Chris Christie has given the seaside gambling resort to turn around its struggling fortunes before considering expanding casinos to other parts of the state - something casino executives fear will decimate the already wobbly market.

And it will begin with the closing of one of the city's 12 casinos, the Atlantic Club Casino Hotel, which will shut down on Jan. 13, the victim of a takedown in bankruptcy court. Two national gambling companies with casinos in Atlantic City, Tropicana Entertainment and Caesars Entertainment, are paying a combined $23.4 million for the business, and the right to strip it for parts and close it down.

Read more at http://www.philly.com/philly/busines...s7qwueTB2dP.99

[PLOL]

I thought they got sold or something... did that fall through? Are they regretting giving Pokerstars the middle finger now?

The problems facing AC will only get worse. More states are expanding gambling, which means more competition. The final nail in the coffin will be when NYC gets a casino. Upstate NY is getting casinos very soon, and an NYC casino is slated for 2020 but could get pushed forward sooner. AC will no longer be able to pull people in from Philly or NY or many other NE states.

[garrett]

This is actually very healthy news for the A.C gambling market. It contracts the market from 12 casinos/rooms to 11. This is precisely why Caesers/tropicana agreed to this deal.

Less casinos will funnel people into the healthier ones that do exist. Over time you will see this was a good thing for the bottom lines of the other 11 casinos in A.C. Also, couple this contraction with the surge of interest by companys to get a piece of the NJ internet gambling market means what is left will actually be of higher value.

Kind of on the run so gonna leave this with that, but its actually a very positive thing for the city, and was a very strategic move by Caesers/Trop. Don't forget Pt Authority took over the A.C Intl airport and added service from United starting 2014.

PLOL you seem to underestimate the VALUE of an Atlantic City gaming commission license. Companies world wide desire it, and always will more than a "neighboring state" as you put it, ever could offer. That is what makes A.C more desirable for net companies, the fact that if they can get licensed in NJ, they can get licensed anywhere. It is the weightiest of all gaming licenses, in the world!

[NaturalBornHustler]

I thought they got sold or something... did that fall through? Are they regretting giving Pokerstars the middle finger now?

The problems facing AC will only get worse. More states are expanding gambling, which means more competition. The final nail in the coffin will be when NYC gets a casino. Upstate NY is getting casinos very soon, and an NYC casino is slated for 2020 but could get pushed forward sooner. AC will no longer be able to pull people in from Philly or NY or many other NE states.

Maryland has casino's popping up everywhere, and pretty much any business that AC got from here (which was a LOT, I know tons of people who make the 2 hr trip up there on a regular basis) will be pretty much gone soon. Same with DC, already have casinos opening and table games going. 2 1/2 hours to AC from there.

Baltimore is opening a huge casino smack in the middle of downtown sometime in 2014. They are getting built everywhere, and this is only the tip of the iceberg. Only thing AC has going for it is the beach. But outside of that in a couple years most people won't have to drive more than 30 minutes to gamble in their home state on the east coast.

AC used to have the entire East Coast locked down from DC to PA, there was nowhere else to go unless you wanted to hop a flight to Vegas across the country. But that monopoly on the region is no more.

[Dan Druff]

All good points in this thread.

I'll tell you two other things that I think are hurting AC:

1) Seedy neighborhood. Visiting there just conjures images of ghetto unpleasantness, and people just don't want to go.

2) Parking situation. I'm sure it's very frustrating for casual gamblers to pay $10-$20 for parking AFTER already losing in the casino. All of these casinos are so paranoid about boardwalk visitors using them for free parking that they are cutting off their noses to spite their face. Charging for parking at a casino is an antiquated concept, and I'm sure it prevents casual players from coming down there, especially if they're not sure how much time they really feel like spending gambling.

I mention the above because these are both how I felt when I visited AC last year. #2 became an non-issue when I realized that Caesars Seven Stars get free parking at their properties, but prior to thinking about that, the parking rates were tilting me.

[garrett]

All good points in this thread.

I'll tell you two other things that I think are hurting AC:

1) Seedy neighborhood. Visiting there just conjures images of ghetto unpleasantness, and people just don't want to go.

2) Parking situation. I'm sure it's very frustrating for casual gamblers to pay $10-$20 for parking AFTER already losing in the casino. All of these casinos are so paranoid about boardwalk visitors using them for free parking that they are cutting off their noses to spite their face. Charging for parking at a casino is an antiquated concept, and I'm sure it prevents casual players from coming down there, especially if they're not sure how much time they really feel like spending gambling.

I mention the above because these are both how I felt when I visited AC last year. #2 became an non-issue when I realized that Caesars Seven Stars get free parking at their properties, but prior to thinking about that, the parking rates were tilting me.

No one hangs out in Atlantic City, its either stay at the casino or commute to it. 15-10 minutes around A.C are some very nice areas. Margate/Ocean City/Brigantine/Northfeild, all small town vibe affluent communities.

Christie did re-zone the Casino areas as tourism zone, and put it under the control of the State police. Among other things, it just takes time. The Mayor is one of the worse in America and has been there way too long.

[BCR]

I thought they got sold or something... did that fall through? Are they regretting giving Pokerstars the middle finger now?

The problems facing AC will only get worse. More states are expanding gambling, which means more competition. The final nail in the coffin will be when NYC gets a casino. Upstate NY is getting casinos very soon, and an NYC casino is slated for 2020 but could get pushed forward sooner. AC will no longer be able to pull people in from Philly or NY or many other NE states.

Maryland has casino's popping up everywhere, and pretty much any business that AC got from here (which was a LOT, I know tons of people who make the 2 hr trip up there on a regular basis) will be pretty much gone soon. Same with DC, already have casinos opening and table games going. 2 1/2 hours to AC from there.

Baltimore is opening a huge casino smack in the middle of downtown sometime in 2014. They are getting built everywhere, and this is only the tip of the iceberg. Only thing AC has going for it is the beach. But outside of that in a couple years most people won't have to drive more than 30 minutes to gamble in their home state on the east coast.

AC used to have the entire East Coast locked down from DC to PA, there was nowhere else to go unless you wanted to hop a flight to Vegas across the country. But that monopoly on the region is no more.

They are in trouble. PA is now second behind Nevada in gaming revenue. So PA in a few years eclipsed everything AC built over decades. Every time I went to AC, it was like 70% Philly/NYC crowd. They lost much of Philly, and if they ever lose NYC/Maryland, they might as well shutter everything besides the Borgata.

Off topic, PA to me is the lynchpin to online poker becoming the real deal in the US. Obviously California is the ultimate pool, but if PA joined the existing online poker states in a compact, then Ohio, WV, and Michigan would all eventually fall in line. Neighboring states resist for awhile, but they all get sick of seeing their neighbors offer something they don't. Adding just PA and Ohio would equal Canada, and PA and Ohio gamblers live there. Their revenue is mostly in-state and would be playing all the time. Pa and Ohio seem like they could go in the next couple years. They've already talked quite a bit, and have no Indian casinos to lobby against anything.

[LLL]

People don't blink at the parking in AC, Druff. I can see where you are coming from seeing how with the exception of downtown in Vegas it's free. Think of AC like downtown Vegas and it makes more sense.

[Belly Buster]

http://www.pokerupdate.com/poker-opi...ing-avoidable/

In a statement on its corporate blog, PokerStars lamented the upcoming closing of the Atlantic Club Casino Hotel, hinting that things may have turned out differently had the casino owners not "walked away from" the acquisition agreement with PokerStars and instead waited several months "for the regulatory approval process to be completed."

Eric Hollreiser, PokerStars' Head of Corporate Communications, revealed that PokerStars is "saddened" that the Atlantic Club will close on Jan. 13 following bankruptcy proceedings that saw the Tropicana and Caesars submit an approved joint bid of $23.4 million. The new owners will strip the casino for parts, reducing the number of casinos on the Jersey shore to 11.

Some 1,800 casino workers will begin the new year in the unemployment line, putting the hurt on an already struggling New Jersey economy. PokerStars made a deal to purchase the casino about one year ago for $15 million, which it claims could have saved those jobs and injected "new blood, new technology and new finances" toward Atlantic City's revitalization.

Considering that the online gambling bill in New Jersey had not yet been signed when the deal to acquire the Atlantic Club was first brokered, Hollreiser stated that PokerStars took a huge "leap of faith and commitment of significant investment" by agreeing to bail out the struggling casino. Remember too that PokerStars shelled out $11 million of that $15 million purchase price to keep the casino afloat "in the dark days following Hurricane Sandy and the seasonally slow winter months."

Indeed, the claim that PokerStars made a tremendous leap of faith and investment is spot-on. There's no doubt that license approval from state gaming regulators would have permitted PokerStars to take over the casino, open a new live poker room, operate a number of online gaming sites, and make a go at reversing the struggling fortunes of the Atlantic Club.

However, considering that PokerStars' application for licensing in conjunction with their partnership agreement with the Resorts Casino Hotel has been suspended, it is somewhat hard to see how the Atlantic Club closing was "avoidable." Hollreiser claims that the Atlantic Club walked away from the deal "in hopes that the improved economic picture could lead to more rewards" following the enactment of online gambling legislation.

It may be more likely that the Atlantic Club owners walked away more because it was obvious to them that PokerStars was not going to get approved due to founder Isai Scheinberg's staus as a fugitive from justice regarding the Black Friday charges. The two-year suspension of the review of PokerStars' license application by the New Jersey Division of Gaming Enforcement bears this out.

It appears that the only way the Atlantic Club closing would have been "avoidable" is if PokerStars gained regulatory approval. With Scheinberg not yet answering the charges against him, it's likely that the regulatory approval process to purchase the casino would have turned out the same way as did PokerStars' application to partner with Resorts -- not completely denied, but not approved either.

In any event, that won't be the last of PokerStars' attempts to set foot in the U.S. market. Hollreiser further stated that the company "will continue to pursue our goals and remain confident that we will have a strong presence and positive economic impact in the American market in 2014, whether that is in New Jersey or another state seeking the benefits of being home to a world-class online gaming company."

[hongkonger]

Only place I've been in AC is the Borgata and it's nice, rest of the city just seemed like a complete shithole.

[NaturalBornHustler]

Only place I've been in AC is the Borgata and it's nice, rest of the city just seemed like a complete shithole.

AC is a fine example of the urban liberal failures of the last 40 years, you got that right.

[NaturalBornHustler]

Haha look at this shit.....

http://www.marylandlivecasino.com/careers/

Atlantic City Job Fair

Maryland Live! Casino will host a series of job fairs in Atlantic City for all available positions at the Hanover, MD facility. Job fairs will be held Monday, January 6 and Tuesday, January 7, from 9:00am – 6:00pm each day, in the Ballroom at the Atlantic Club Casino Hotel; and Wednesday, January 8, from 9:00am – 6:00 pm, and Thursday, January 9, from 9:00am – 1:00pm, at the Sheraton Atlantic City. Interested applicants are encouraged to register online for an account, in advance of the job fairs, which will expedite the application process for their desired position. Applicants must be 21 or older.

They are straight trying to steal workers right from AC, like a bunch of vultures circling around dying prey.