Showboat Casino, Planning To Shut Down, Could Be Saved By A Buyer
By David Madden and Cleve Bryan
ATLANTIC CITY, N.J. (CBS) -- More than 2,000 Showboat casino-hotel employees are expected to get official notices that they will lose their jobs in 60 days (see related story). Those notices are mandated under federal law for large employers planning layoffs.
Casino expert Roger Gros from Global Gaming Business says, "The industry for Atlantic City in pretty bad shape right now it's over capacity, we have way too may slot machines and table games, we frankly have too many casinos open right now." He adds, "I see about eight casinos staying open but that means we got to eliminate about two more before we get to a stable situation."
But other industry experts are suggesting the casino might not have to close after all.
Like everything else in life, it's all about the money. Joe Weinert, with the Spectrum Gaming Group, is not surprised that Showboat's owner came to this decision.
"The Atlantic City casino industry, from a revenue standpoint, is about half the size of what it was seven years ago," he notes, "and yet the supply of casinos has not dropped commensurately."
Still, Weinert suggests that if the price is right, Showboat could be sold.
"Showboat is a large, attractive property that I think will get at least a serious look from some prospective buyers," he tells KYW Newsradio.
Meanwhile, the Revel Casino, currently in Chapter 11 bankruptcy, is also on the block.
Showboat's owner, Caesar's Entertainment, has three other Atlantic City properties and just closed a casino in Mississippi facing similar financial challenges.
