Atlantic City is gearing up for a long Labor Day weekend that will see the closures of two casinos, only to be followed with an additional closure later next month.
By Sept. 16, Revel, Showboat and Trump Plaza all will have gone dark.
But according to a new report Friday from Fitch Ratings, the bleeding will be stopped there, if only for a short time. According to Fitch, no additional casino closures in the Atlantic City market are anticipated over the next 24 months.
That’s primarily due to a simple case of supply and demand.
Fitch estimates that more than half of the gaming revenues expected to be lost by the three closing casinos will be retained by other players in the market and that “weaker casinos should benefit from the more rational supply in the city.”
But while Fitch estimates that Atlantic City’s remaining casinos will pull in roughly $2.5 billion in 2015, it sees that number dwindling down to around $2 billion as competition continues to mount in neighboring states and potentially in North Jersey, where proposals for casinos in Jersey City and the Meadowlands are currently being discussed.
ALSO ON NJBIZ: