New Hard Rock Casino in Atlantic City is going to cost $500
According recent reports the new Hard Rock Casino in Atlantic City could cost more than $500 million.
Chairman, Jim Allen spoke about the new casino during a keynote address at the East Gaming Congress in Atlantic City on 5th April. The new casino will be located in the famous building formerly known as the Trump Taj Mahal casino. The casino eventually closed due to long running labour dispute which resulted in 3000 workers losing their jobs.
Other good news has been broadcast in Atlantic City since there were stirrings about the Trump Taj Majal re-opening. Atlantic City recovering could become a reality.
Atlantic City was getting into dire straits. With five casinos closed the city was facing a $100 million budget deficit and a $500 million debt. Atlantic City was facing casino revenue disaster. It was also facing bankruptcy and was being taken over by the state for good measure.
Trump Taj Majal is finally sold to Hard Rock International
It was announced today that the Trump Taj Majal Casino in Atlantic City has been sold. Recently all Trump signage was removed due to an option deal which expired.
The sale by Carl Icahn to Hard Rock International and two New Jersey investors is a breath of good news. Not only for Icahn and Hard Rock but for Atlantic City. Only four months ago the casino had been boarded up following a long running labour dispute. 3000 workers lost their jobs when the casino closed.
President Trump is having his name removed from the Taj Mahal casino in Atlantic City. The Trump Taj Mahal casino opened on 5th April 1990 and closed during October 2016, a run of more than 26 years.
When the current owner, Carl Icahn bought the Casino he was allowed to keep the Trump Entertainment Brand as long as it was renovated. That has not been the case since the casino is now closed for business. Carl Icahn has already made it clear that there will be no further investment in the property. Removal of the signage has already commenced although the branding agreement does not expire for a month.
It has been 10 years since Atlantic City casino revenues increased. Atlantic City casinos have suffered from decline for many years. Maybe now this could this be a sustained return to positive revenue.
December 2016 was a bumper month for the Atlantic City casinos bringing home to total revenue of $2.60 billion. That was an increase of 1.5% on 2015. Atlantic City casino revenues were always positive from the conception of Atlantic City casinos in 1978 until 2006 when it all crashed. Now Atlantic City is recovering.
New US east coast casinos are springing up in attractive locations close to major US cities. These new casino resort complexes are in new catchment areas.
US East Coast Casinos to open soon
Investment in US casinos is shifting away from Las Vegas and Atlantic City, the two major US gambling centres.
The fortunes of Atlantic City have been declining for many years. Atlantic City’s gaming revenue last year was just $2.56 billion, down from $5.22 billion in 2006. Las Vegas continues to impress with a gaming revenue of $6.32 billion in 2015. There are 1511 casinos across the US generating a total of $71.1 billion. Las Vegas and Atlantic City currently account for only 12.5% of US Gambling Revenue which is a surprising statistic.
The story of Atlantic City gambling history is really sad. Atlantic City can be seen as a victim of progress as gambling moved to other locations.
Atlantic City History
The city as we now know it is located on Absecon Island in New Jersey. Originally occupied by Indian it has an interesting history. Later in 1670 it was owned by an Englishman who bought it for a song, 40 cents an acre. Nothing happened there until Jeremiah Leeds settled there in 1785. He was the first person to build a permanent structure on the island. It was a farming settlement called Leeds Plantation. After his death in 1838 his wife got permission to operate a tavern and boarding house.