New Jersey Casino Control Commission Approval of Reorganization Plan
The New Jersey Casino Control Commission has just approved a bankruptcy reorganization plan that would pull the Caesars Entertainment casinos out of debt. The casino states that the chapter 11 bankruptcy would allow the casino to thrive again. This is one of many bankruptcy reorganizations among Atlantic City, New Jersey casinos. The company operates several casinos in Atlantic City including its most notable Caesars Palace, which has been a landmark in the city since 1979. Among the other properties owned by the corporation are Bally’s, Harrah’s, Horseshoe, Las Vegas Strip and several other lesser known venues around the world.
Caesar’s doesn’t source the reasoning behind the need for a reorganization, aside from stating that it carries an excessive amount of debt to the tune of 18 billion dollars. The casino would also be reducing 807 million dollars in lease and interest expenses. Despite the excessive amount of debt, the casino commission has allowed the company to apply for casino licenses under its new proposed brand which has yet to be published.
According to many other sources, the casino industry in Atlantic City has been economically failing for many years and is expected to continue. Despite these warnings and many jobs lost, the city continues to allow the casinos to keep operating and filing bankruptcy petitions. This is partly due to technology. While gambling in brick and mortar establishments is on the downturn, online gaming websites have increased significantly. As the aging population becomes more technologically savvy, the trust factor increases and more customers are added each day.
Another factor is the younger population, specifically “millennials,” aren’t interested in gambling at these establishments. Many studies on this topic have been conducted over the years and produce the same results consistently. The younger crowd finds gambling to be “boring.” The younger crowd is interested in partying and not gaming. Many Las Vegas casinos have been scurrying to find a new outlet for the youngsters, despite many repeated failed attempts to continue to market gambling to the crowd.
The bankruptcy reorganization is reminiscent of the Trump casinos who reorganized numerous times under chapter 11. The action producing the same result repeatedly. The accountability factor being nil. As online casinos tend to increase in popularity the older gaming establishments may fade into the background of yesteryear. Atlantic City will most likely be forced to reinvent itself under a new type of entertainment or venue to keep the tourism it seeks to capitalize on.