Market Overview

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

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

The casino businesses in Las Vegas have gone through tough times since the economic crisis in 2008. Despite improving conditions in Nevada, Atlantic City has not had the same good fortune.

Caesars Entertainment Corp (NASDAQ: CZR) Chairman Gary Loveman, was on CNBC recently to discuss why things are getting better in Vegas, but not in 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 part 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."

Related Link: Penn National Gaming Announces Intent To Withdraw From The Proposed Lawrence Downs Casino And Racing Resort In Western Pennsylvania

Not So For Atlantic City

Loveman was asked why 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 [...] 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.

Posted-In: casino CNBC gaming industry Gary Loveman March MadnessTravel Media General Best of Benzinga


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