Showboat Casino closing has been announced Friday. This is another hit for Atlantic City as this is the second time that a casino closes in the year. According to reports, the Showboat Casino closing will be held Aug. 31.
In addition to the Showboat Casino closing, the Mardi Gras-themed casino's closing will include the casino's House Of Blues, which is known as one of New Jersey's most popular concert venues.
The Showboat Casino closing announcement was told by parent company Caesars Entertainment to the Associated Press.
The news of the Showboat Casino closing is alarming as reports say the announcement has now raised the possibility that three other big casinos will be closing within the span of a few months.
The Showboat Casino closing came as Caesars said that the Showboat is now the poorest-performing among the company's four Atlantic City casinos.
CEO Gary Loveman has released a statement addressing the Showboat Casino closing. He said that the official announcement on the Showboat Casino closing is a "difficult decision", however necessary as the rest of its business in Atlantic City needs protection.
Loveman said, '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. 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.'
Loveman added of the Showboat Casino closing, '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.'
Loveman also said that the decision regarding the Showboat Casino closing has been created by the "dynamic" of the city's gambling industry being in decline since 2006 and the recent rise in competition.
According to USA Today, the Showboat Casino closing is the second announcement of a casino closing in the year. The Atlantic Club had been closed January due to bankruptcy claims by Caesars Entertainment and Tropicana Entertainment. The Atlantic Club was formerly known as the Hilton and it reportedly once made distinct the southwest of the gambling strip along the famous boardwalk.
Because of the announcement of the Showboat Casino closing, the sleek and towering Revel Casino Hotel at the northeastern end of the boardwalk has said it might also shut down if they could not find a buyer.
President Bob McDevitt of Local 54 of the Unite-HERE casino workers' union said he has planned to spend the next few days talking with Showboat employees since the Showboat Casino closing announcement.
He said, 'I'm heartbroken and angry, too angry to respond in an effective way.'
On Thursday night McDevitt said that the company's threat to close a profitable casino was "a criminal act."
Mayor Don Guardian was asked at a press conference Friday if he is angry at Caesars Entertainment for making the Atlantic Club and Showboat Casino closing, he said that the company is still the largest taxpayer among casinos. He also said, 'I'm partnering with the businesses that remain in Atlantic City. I'm sorry that the Showboat is shutting down.'
According to ABC News, before the Showboat Casino closing, the casino has posted a gross operating profit of nearly $2 million for the first quarter of this year. However, the profit in 2013 was nearly $8.5 million, therefore the 2014 profit was a huge down. This year, the Showboat has reportedly taken in $66.2 million from gamblers, which made it rank seventh out of Atlantic City's 11 casinos. This was a decline of nearly 16 percent from the same period in 2013.
Meanwhile, the Caesars reportedly don't know yet what will happen to the Showboat's land and buildings, which includes a 20-story hotel tower above the casino.
Showboat Casino closing will reportedly have the casino remain fully operational until Aug. 31. Meanwhile, guests with reservations after the closing date will be assisted in finding new accommodations. Also, the casino will work with its more than 2,100 workers to help them find jobs with other casinos owned by Caesars Entertainment in New Jersey and elsewhere.
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