The news report has just confirmed that Showboat Casino is closing in Atlantic City as of 8/31. This was rumored earlier this year in a report to investors from Caesars CEO Gary Loveman.
The Atlantic City market is down from the high of 5.2 billion in revenue in 2006 to 2.9 billion last year. This is the harsh reality that the gaming business has changed due the economy and Pennsylvania emerging as the 2nd largest market in the United States.
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| The Bad Streak Continues! |
My take is that less will now become more. A reduction of current capacity will continue and one more property will close or become a hotel only. The supply exceeds the demand in the current model and an adjustment of 25%, based on the 2006 offering, will make up for the 40% drop in business levels.
The solution is to grow the market through innovative thinking and online gaming. In future posts, I'll give strategic concepts that I see as ways to grow the pie in the entire region.You can follow me on Twitter at https://twitter.com/GamingguyM and Facebook
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