The Economic Impact of Casino Closings

Casino Freebies Not Enough to Help Atlantic City

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    NEWSLETTERS

    AFP/Getty Images

    Free hotel stays, free food and free slot play. The efforts of Atlantic City casinos to lure business to the faltering Shore resort with giveaways is failing to help boost the destination's economy

    Dorothy Lapsley told Bloomberg celebrating her 87th birthday at the Shore resort included promotions like a complimentary hotel room.

    Her daughter, Barbara Lapsley, said they also enjoyed free food during their two-night stay in Atlantic City.

    "We get a sub sandwich from White House and it's so big you can eat it all day," Barbara told Bloomberg.

    But their trip and the many others have yet to bolster Atlantic City's economy, which is steadily declining as the gaming industry's continues to slide.

    Last year, the city's 12 casinos earned a total of $2.9 million in revenue, according to the state's Office of the Attorney General.

    But the previous year, those same twelve casinos, including Revel Casino and Hotel which opened to the public in April 2012, had $3.1 million in revenue.

    The industry fared even better in 2011 with a slightly different set of twelve casinos, including the Trump Marina and the Golden Nugget which both closed in May of that year, brought in $3.3 million.

    Making things even worse,  the city will have only 10 casinos after the Showboat Casino and Hotel closes Aug. 31 and possibly nine if Revel Casino and Hotel can't find a buyer.

    To find out more about how the industry's decline is causing Atlantic City's economy to crumble, visit Bloomberg.com.