Caesar’s Running into a Burning Building
Feb 5, 2014
In a head-scratching move, the Vegas firm is pitching for another bankrupt casino.
It has been reported that Vegas-based Caesar’s Entertainment is making a pitch to acquire the bankrupt Revel Casino in down-trodden Atlantic City. The Revel filed for bankruptcy last April less than one year after opening. Interested parties have two weeks to submit bids.
Caesar’s made casino gambling news recently by buying the Atlantic Club Casino-Hotel, giving them a total of six in the East Coast gambling hub. Or, what used to be the East Coast gambling hub. And Caesar’s purchased the Atlantic with the purpose of closing it down to reduce local competition.
Atlantic City caught in downward spiral
Caesar’s now has $2.4 billion in long-term liabilities, much of it put into its holdings in Atlantic City. This is inexplicable to many observers considering Atlantic City’s revenues plummeted to their lowest number in history last year.
The city’s casino industry is under fire from growing competition in nearby Pennsylvania and New York as well as the legalization of online casinos in the state. Vegas tycoon Sheldon Adelson is conducting a personal crusade against online casinos, arguing that the growth of games like online blackjack and poker will spell doom for the gaming industry.
Execs from Caesar’s are less pessimistic about the trend towards online gaming, but any way you slice it, Atlantic City is going nowhere fast.