Latest Rumors
Posted: Sun Jun 01, 2014 10:46 am
From the guy that writes the "Seven Star Insider" newsletter...
It was almost impossible to be in Atlantic City this weekend without hearing rumor after rumor about the possible closing of Showboat. Some employees claim to have seen a memo with the actual date of the rumored closing -- September 16 -- just days after Miss America 2015 is crowned. Other employees admit to quietly looking for new positions and some already have left -- including one senior executive who moved on a month ago. Could be just coincidences, but there are other signs which point to a closing that I'm not at liberty to reveal. Keep in mind, too, that we have been hearing rumors of Showboat's sale for years.
It doesn't take a Rhodes scholar, though, to realize that the Atlantic City market is oversaturated. There are simply too many casinos and not enough customers. One or more needs to close -- most likely an underperformer like Trump Plaza. However, if Caesars does close Showboat I give management credit for "taking one for the team" -- by "team" I mean Atlantic City, the other Atlantic City casinos and the players who gamble in AC. While I hate to see dedicated casino workers lose jobs -- that's not good either, Atlantic City simply can't sustain its current business model. Somebody has to go. In terms of Caesars Entertainment, it's unlikely it would shutter its flagship casino, Caesars; Bally's just invested more than $6 million in casino upgrades and will open two new restaurants next month; and Harrah's is building a multimillion dollar conference center and also is opening a new restaurant next month.
Federal and New Jersey laws require 60 days' notice when a business terminates its operation, so if something is, indeed, going to happen in September, look for an official announcement next month.
It was almost impossible to be in Atlantic City this weekend without hearing rumor after rumor about the possible closing of Showboat. Some employees claim to have seen a memo with the actual date of the rumored closing -- September 16 -- just days after Miss America 2015 is crowned. Other employees admit to quietly looking for new positions and some already have left -- including one senior executive who moved on a month ago. Could be just coincidences, but there are other signs which point to a closing that I'm not at liberty to reveal. Keep in mind, too, that we have been hearing rumors of Showboat's sale for years.
It doesn't take a Rhodes scholar, though, to realize that the Atlantic City market is oversaturated. There are simply too many casinos and not enough customers. One or more needs to close -- most likely an underperformer like Trump Plaza. However, if Caesars does close Showboat I give management credit for "taking one for the team" -- by "team" I mean Atlantic City, the other Atlantic City casinos and the players who gamble in AC. While I hate to see dedicated casino workers lose jobs -- that's not good either, Atlantic City simply can't sustain its current business model. Somebody has to go. In terms of Caesars Entertainment, it's unlikely it would shutter its flagship casino, Caesars; Bally's just invested more than $6 million in casino upgrades and will open two new restaurants next month; and Harrah's is building a multimillion dollar conference center and also is opening a new restaurant next month.
Federal and New Jersey laws require 60 days' notice when a business terminates its operation, so if something is, indeed, going to happen in September, look for an official announcement next month.