Pinnacle Entertainment became the latest developer to deal a blow to the Atlantic City casino industry when they announced that they would be selling the property of the former Sands Casino.
>Pinnacle Entertainment was supposed to be one of the saviors for the Atlantic City casino industry. Now, almost as fast as they moved in to town, the developer is moving out. The company announced it is aborting a plan for a new casino resort in AC.
"We put the property up for sale in Atlantic City," said John Giovenco, interim Chief Executive Officer of Pinnacle, "We hope to sell as soon as a reasonable bid comes in. I can't tell you when. Hopefully, sooner than later."
The company announced what many analysts have been saying for months, the Atlantic City casino industry is in trouble and there appears to be no salvation in sight. Many of these analysts believe that it will be at least until 2011 before a rebound even begins.
Adding to the problems that in the city have already been experiencing is the idea that neighboring states are now starting to offer the same gambling options. Pennsylvania lawmakers have recently legalized table games for their casinos and Delaware is about to do the same.
In the past year, several AC casinos have filed for bankruptcy, and of those, a couple have already been sold in bankruptcy court. Revenue has declined in Atlantic City in double digits for many months over the past two years.
Las is the West Coast equivalent to Atlantic City and they are experiencing tough times as well. Revenue at Sin City casinos has declined, and many of the gaming operators have turned to international casinos to help deal with the economical troubles in the US.
Source: Casinogamblingweb.com - News added: 2010-02-07 at: 00:00:08
