The Canadian Press - ONLINE EDITION

Caesars Entertainment closing Atlantic City's Showboat casino at end of August

  • Print

ATLANTIC CITY, N.J. - Casino contraction hit Atlantic City for the second time this year, as the parent company of the Showboat Casino Hotel announced Friday it will close the Mardi Gras-themed casino on Aug. 31.

Caesars Entertainment told The Associated Press on Friday morning the company will shutter the poorest-performing of its four Atlantic City casinos.

CEO Gary Loveman said in a statement that the "difficult decision" is necessary to protect the rest of its business in Atlantic City, where it currently owns four of the 11 casinos.

"While we regret the impact that this decision will have on our Showboat associates, we believe this is a necessary step to help stabilize our business in Atlantic City and support the viability of our remaining operations in the vicinity," he said. "Since 2006, revenue in Atlantic City has declined by more than $3 billion and competition in the city has increased. The dynamic in Atlantic City has led us to the difficult but necessary decision to close Showboat."

"We sincerely appreciate the service, dedication and professionalism shown by the employees of the Showboat over the years to provide our customers with incredible experiences," he said.

The closing will also shutter the casino's House Of Blues, one of New Jersey's most popular concert venues.

It will be the second casino to close this year in the nation's third-largest gambling market. The Atlantic Club closed in January, taken down in a bankruptcy sale by Caesars Entertainment and Tropicana Entertainment, who stripped it for parts and closed it to reduce competition.

And, Revel Casino Hotel has warned it might shut down if a buyer can't be found in bankruptcy court.

Bob McDevitt, president of Local 54 of the Unite-HERE casino workers' union, said he planned to spend the next few days talking with Showboat employees.

"I'm heartbroken and angry, too angry to respond in an effective way," he said.

Thursday night, when he revealed that Caesars planned to issue warning notices to Showboat workers that the casino might close, McDevitt called the company's threat to close a profitable casino "a criminal act."

Asked at a press conference Friday if he is angry at Caesars Entertainment, which has had a hand in closing two Atlantic City casinos so far this year, Mayor Don Guardian responded that the company is still the largest taxpayer among casinos, adding, "I'm partnering with the businesses that remain in Atlantic City. I'm sorry that the Showboat is shutting down."

For the first quarter of this year, the Showboat posted a gross operating profit of nearly $2 million. But that was down from a profit of nearly $8.5 million in the first quarter of 2013.

So far this year, the Showboat has taken in $66.2 million from gamblers, ranking it seventh out of Atlantic City's 11 casinos. That represents a decline of nearly 16 per cent from the same period in 2013.

Caesars said the Showboat will remain fully operational until Aug. 31. Guests with reservations after that date will be assisted in finding new accommodations, Loveman said.

He also said the company will work with the casino's more than 2,100 workers to help them find jobs with other casinos Caesars Entertainment owns in New Jersey and elsewhere.

In addition to the Showboat, Caesars Entertainment owns Harrah's Resort Atlantic City, which ranks second to the Borgata in the amount of money won from gamblers each month, Caesars Atlantic City, and Bally's Atlantic City. It also owns a casino in neighbouring Pennsylvania.

___

Wayne Parry can be reached at http://twitter.com/WayneParryAC

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Winnipeg Jets Bogosian-Little-Ladd

View more like this

Photo Store Gallery

  • A red squirrel peaks out of the shade in a tree in East Fort Garry, Sunday, September 9, 2012. (TREVOR HAGAN/WINNIPEG FREE PRESS)
  • Young goslings jostle for position to take a drink from a puddle in Brookside Cemetery Thursday morning- Day 23– June 14, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Should the Canadian Museum for Human Rights use the word 'genocide' in exhibits on Indian residential schools?

View Results

View Related Story

Ads by Google