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Originally Posted by Lovesantiques
I have no idea what Straub and/or Icahn are going to do, but I disagree that it is too late for Atlantic City. There are still 8 casinos there, which is a higher concentration than anywhere else within at least several hundred miles. There is still the ocean, and the boardwalk, and a much improved (since the dredging by the Army Corps of Engineers greatly expanded the beaches) beach.
Entertainment options are increasing, and the Tropicana just spent a reported $50 million improving things over there. Harrah's recently completed a new convention center. When Straub reopens the Revel (under whatever name he eventually chooses) then that may well be a boost as well, especially if the talked about water park is part of the reopening.
The remaining 8 casinos are all reporting stronger earnings. That has to be a plus.
We'll see, but I'm optimistic.
Atlantic City has had many ups and downs over the past 150 years or so. It has come back before, and I believe will come back again. Sure it has some serious problems, and the city itself may well have to go through bankruptcy first. But overall - yes, I am optimistic.
Lee
The fact that gaming revenue is up at the surviving properties is not enough. Total B&M gaming win in AC was down another 10% in 2014. The market still hasn't found a bottom. There's a gradual trend of fewer people coming to AC to gamble. The locals casinos are still stealing customers and that's without gaming having really expanded in NYC/North Jersey yet.
There won't be 8 casinos left in five-ten years. Taj and Resorts will almost certainly be gone. Wouldn't shock me to see it get down to the Trop, Caesar's, Harrah's, and Borgata. Those are the only sustainable properties.
Mark my words - Straub will never re-open Revel. He would be nuts to spend $500 M on the property. He's already got the property for sale.
The writing is on the wall. Someone is going to put a casino in North New Jersey at some point because they need the tax revenue too much. That will be the death knell for the worst 2-4 properties in AC.
Atlantic City may have a rebirth as something else, but it won't be as a gaming mecca.