The city that once held a reputation that nearly rivaled that of Las Vegas in terms of gambling, has now taken a bit of a plunge. With the recent string of casino closings, Atlantic City of New Jersey, has had its credit rating cut an entire level to BBB+ by Standard & Poor’s.
Prior to this, the city had already received its fair share of negative feedback earlier in the year with a similar rating from Moody’s Investor Service. Such ratings are, no doubt, a direct result of the news that five of AC’s twelve casinos are set to close by the end of this year.
It may now be safe to say that the buzz surrounding the supposed ‘Atlantic City turn-around’ is not realistic. According to S&P analyst, Lindsay Wilhelm, “The downgrade and negative outlook reflect our opinion of the revenue and potential liquidity pressures that the city faces following the closing of its 12 casinos, two of which are in bankruptcy.”
One of the most recent casinos to be added to the list of closures is Revel. According to Revel Group LLC, it will discontinue its License Agreement with the Revel Branded property. A brand audit by Starworks Group is set to follow. The casino has been placed on notice of violations under the agreement, regarding non-brand adherence and Revel Group has high hopes that it will reopen for its originally intended non-gaming purposes.
There have been rumors of additional casino closures within Atlantic City, resulting in an unknown future for the once, U.S. East Coast gambling capital.
wscalley
10 years ago
Sr. Member
Things are looking grim indeed for AC - but is just the five casinos closing or all 12 ? I can't quite tell ... for sure though I bet Las Vegas isn't too sorry to hear of these troubles continuing, and every big name involved with gambling in AC is running for the exit one after another ... I'm gonna predict AC will end...
Things are looking grim indeed for AC - but is just the five casinos closing or all 12 ? I can't quite tell ... for sure though I bet Las Vegas isn't too sorry to hear of these troubles continuing, and every big name involved with gambling in AC is running for the exit one after another ... I'm gonna predict AC will end up no more of a gambling mecca than any other US city within a handful of years.
Show morePlease enter your comment.
Your comment is added.
SassyGirlMe
10 years ago
Full Member
I agree with elvis comment. The city government probably taxed them here and there. Leaving it impossible to keep up with all the overhead. If the city was really counting on them to bring in visitors they would have stepped up and assisted in keeping them up and running. But it's obvious that they did not even think about...
I agree with elvis comment. The city government probably taxed them here and there. Leaving it impossible to keep up with all the overhead. If the city was really counting on them to bring in visitors they would have stepped up and assisted in keeping them up and running. But it's obvious that they did not even think about helping out. When they realize they should have gave them a break is when they start to feel their wallets getting empty.
Show morePlease enter your comment.
Your comment is added.
elvisbektasevic 10 years ago Newbie
Is it possible that such a strong city is starting to wane? How did bad grades, how bankruptcies? Asks whether someone where this is going? 12 to 12 and .... end. I think the only city government to blame for that!
Please enter your comment.
Your comment is added.