Why Things Are Getting Better For Las Vegas, But Not For Atlantic City?

Loading...
Loading...

The casino businesses at Las Vegas have gone through tough times since the economic crisis in 2008 and even though things seem to be improving there, one cannot say the same thing for Atlantic City.

 

Caesars Entertainment Corp CZR Chairman, Gary Loveman, was on CNBC recently to discuss why things are getting better at Vegas, but not at Atlantic city.

 

Good Times For Vegas


"Things at Vegas are getting better, we are very encouraged […]," Loveman said. "I think you are going to see operators there have a very good run in the beginning of the year. The business is more buoyant in large parts because supply has been stable now for some time, demand patterns are improving, the convention and meetings business is robust."


Loveman continued, "We have enjoyed a great start to march madness, which is always a good time for us. So, the casino industry having had a pretty tough run in the last few years I think is really on the mend."


Not So For Atlantic City


Loveman was asked why is the casino business in Atlantic City is declining at a rapid pace. He replied, "I think the problem there is that you had [gaming] legalized in Pennsylvania, in New York, in Delaware, in Maryland and you had what was a regional monopoly in Atlantic county, New Jersey exposed to a tremendous influx of supply in locations that were proximate to where people have lived, [who had hitherto] gone to Atlantic City."


"So, the aggregate market size grew very substantially, but the portion available to Atlantic City unfortunately shrunk very substantially and the institutional circumstances there were not flexible enough to adjust to it very quickly," Loveman concluded.

Loading...
Loading...
Posted In: CNBCMedia
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...