Northeast Casino Boom Squeezes New Jersey - NBC 10 Philadelphia

The Economic Impact of Casino Closings

Northeast Casino Boom Squeezes New Jersey



    Northeast Casino Boom Squeezes New Jersey
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    The rapid expansion of the gambling industry across the Northeast and, in particular, the Philadelphia-area, has led to tumbling revenues in states like New Jersey, where Atlantic City's economy teeters on the strength of its casinos.

    The Wall Street Journal reports that Atlantic City was the only destination for gamblers along the East Coast in 1990.  Since then, casinos have opened in Pennsylvania, Delaware, New York, Maryland, Conneticut, Rhode Island and Maine, the WSJ shows.

    The increased competition -- more than 20 casinos are located within 100 miles of Philadelphia -- has led several Atlantic City spots to close their doors.

    Caesers Entertainment Group announced one of its four AC locations, the Showboat Casino and Hotel, will shut down Aug. 31.

    The closure, which will afffect more than 2,100 employees, follows an announcement from the struggling Revel Casino Hotel that it has filed for Chapter 11 Bankruptcy protection for the second time in two years.

    While in bankruptcy court, Revel's attorney told the judge that if a buyer can't be found, it will also close and fire its 3,170 employees.

    As Atlantic City deals with the fallout from the industry's expansion throughout the Northeast, New Jersey and other states are figuring out how to handle collecting fewer dollars from the casinos than anticipated, according to the WSJ.

    To read more about the war for gambling money, visit the Wall Street Journal. (A subscription may be required.)