Caesars Entertainment closing Atlantic City's Showboat casino at end of August

Caesars Entertainment told The Associated Press on Friday morning the
company will shutter the poorest-performing of its four Atlantic City
casinos.
CEO Gary Loveman said in a statement that the "difficult decision" is
necessary to protect the rest of its business in Atlantic City, where
it currently owns four of the 11 casinos.
"While we regret the impact that this decision will have on our
Showboat associates, we believe this is a necessary step to help
stabilize our business in Atlantic City and support the viability of our
remaining operations in the vicinity," he said. "Since 2006, revenue in
Atlantic City has declined by more than $3 billion and competition in
the city has increased. The dynamic in Atlantic City has led us to the
difficult but necessary decision to close Showboat."
"We sincerely appreciate the service, dedication and professionalism
shown by the employees of the Showboat over the years to provide our
customers with incredible experiences," he said.
The closing will also shutter the casino's House Of Blues, one of New Jersey's most popular concert venues.
It will be the second casino to close this year in the nation's
third-largest gambling market. The Atlantic Club closed in January,
taken down in a bankruptcy sale by Caesars Entertainment and Tropicana
Entertainment, who stripped it for parts and closed it to reduce
competition.
And, Revel Casino Hotel has warned it might shut down if a buyer can't be found in bankruptcy court.
Bob McDevitt, president of Local 54 of the Unite-HERE casino workers'
union, said he planned to spend the next few days talking with Showboat
employees.
"I'm heartbroken and angry, too angry to respond in an effective way," he said.
Thursday night, when he revealed that Caesars planned to issue
warning notices to Showboat workers that the casino might close,
McDevitt called the company's threat to close a profitable casino "a
criminal act."
Asked at a press conference Friday if he is angry at Caesars
Entertainment, which has had a hand in closing two Atlantic City casinos
so far this year, Mayor Don Guardian responded that the company is
still the largest taxpayer among casinos, adding, "I'm partnering with
the businesses that remain in Atlantic City. I'm sorry that the Showboat
is shutting down."
For the first quarter of this year, the Showboat posted a gross
operating profit of nearly $2 million. But that was down from a profit
of nearly $8.5 million in the first quarter of 2013.
So far this year, the Showboat has taken in $66.2 million from
gamblers, ranking it seventh out of Atlantic City's 11 casinos. That
represents a decline of nearly 16 percent from the same period in 2013.
Caesars said the Showboat will remain fully operational until Aug.
31. Guests with reservations after that date will be assisted in finding
new accommodations, Loveman said.
He also said the company will work with the casino's more than 2,100
workers to help them find jobs with other casinos Caesars Entertainment
owns in New Jersey and elsewhere.
In addition to the Showboat, Caesars Entertainment owns Harrah's
Resort Atlantic City, which ranks second to the Borgata in the amount of
money won from gamblers each month, Caesars Atlantic City, and Bally's
Atlantic City. It also owns a casino in neighboring Pennsylvania.