According to Fitch Ratings, the bulk of gaming revenues from the three Atlantic City casinos expected to close in the coming weeks will be retained by other casinos in the city rather than head elsewhere and, as a result, no other casino closures are anticipated in the next two years.
Fitch estimates that existing Atlantic City casinos will retain approximately 50 percent of Revel’s gaming revenues, more than 60 percent of Trump Plaza’s revenues and 75 percent of Showboat’s revenues. For Trump Plaza and Showboat, those estimates are partially attributable to the fact that their respective parent companies will maintain other casinos within the market.
The estimate also takes into consideration an increase in revenues seen this year at both the Golden Nugget and Tropicana following the closure of the Atlantic Club in January.
Despite the loss of those three casinos, the industry in Atlantic City should earn roughly $2.5 billion in 2015, according to Fitch. However, Fitch says that estimate will continue to dip closer to the $2 billion mark as competition increases in neighboring states and potentially, in northern New Jersey at sites like the Meadowlands and Jersey City.
Over a 12-month period that ended in July, gaming revenues had totaled $2.7 billion, with $457 million of that coming from the already shuttered or soon-to-close Atlantic Club, Showboat, Trump Plaza and Revel.
Of the $280 million in gaming revenue that is estimated to be retained, Fitch believes Caesars’ remaining properties stand to recapture more than half of it. Casinos located in the city’s Marina section, such as Borgata, Golden Nugget and Harrah’s, also stand to gain more than others on the boardwalk, Fitch said.
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