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US – Atlantic City losing $540m a month with downturn worse than the Great Recession

By - 8 April 2020

Atlantic City’s casinos, which were ordered shut March 16, are losing $540m a month with more than 26,000 workers are out of jobs. Industry analysts have warned that some casinos will go bankrupt.

Clyde Barrow, a professor at University of Texas Rio Grande Valley and casino industry analyst, said: “We haven’t seen it play out yet, but if you look at the economic numbers that are going to start coming out in the coming weeks, this portends to be a worse economic downturn than we even saw in the great recession. It will be the biggest blow to the casino industry that we’ve seen in a lifetime. That means some casinos won’t survive. Some may go into bankruptcy, as happened back in 2006 and 2010. There will be some losers, and there will be some winners

Casey Clark, Vice President of strategic communications for the gaming association, said the industry was ‘incredibly resilient’ and believes it will bounce back just like after the recession.

“Right now, we’re focused on working with the federal government so that all corners of the industry — from gaming hubs like Las Vegas and Atlantic City to regional and tribal gaming properties, suppliers and the small businesses that depend on us — have the ability to weather this unprecedented public health crisis,” he said.

Hard Rock Hotel & Casino Atlantic City President Joe Lupo said: “Hard Rock Hotel & Casino Atlantic City is committed to our team members during these unprecedented times, ensuring that our communication has been open and direct. COVID-19 has and will continue to have a tremendous financial impact on our team and business, resulting in incredibly difficult decisions made now and in the future.”

Ocean Casino Resort said to its workforce: “We plan to reinstate your employment as soon as we have the business needs and are permitted to operate.”

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