Posted on 09/01/2014 8:26:39 AM PDT by SeekAndFind
Over the last few years, tax revenue from casinos has fallen precipitously which have led to massive budget problems for the city. The recession is to blame, but Atlantic City's problems go deeper than it being a one industry town.
The closing of three casinos, starting with Showboat and Revel this weekend followed by Trump Plaza two weeks later, and the rapid-fire loss of 5,700 jobs, draw historic comparisons to longer-term collapses of U.S. industries such as steel.
"This is a massive economic body blow to Atlantic City on par with the hit to the national economy during the Great Recession," said Mark Zandi, chief economist at Moody's Analytics in West Chester.
Beyond the thousands of job losses, which will spread into related industries and the general economy, Atlantic City will soon be left with four empty buildings (including the shuttered Atlantic Club) that have no clear future.
"What we've got in Atlantic City is unprecedented. It hasn't happened before in this type of context, where they are going to shutter them up and literally can't give them away for pennies on the dollar, like Revel," said Alan Silver, a former casino-industry executive who teaches at Ohio University in Athens, Ohio.
Silver and other casino-industry experts said there was little precedent for reusing casinos for anything other than hotels.
(Excerpt) Read more at americanthinker.com ...
Atlantic City? Isn’t that some hellhole in New Jersey which saw its heyday around 1880? Why would anyone even think about even spotting such a place on a map, much less going there?
Vegas will probably always do well. But then there’s only one Vegas, just like there’s only one NYC or Orlando.
Las Vegas has adapted better than most places.
30 years ago you couldn’t find a great meal in there. Now top chefs are everywhere.
Top entertainers rotate through a dozen venues, as well as 5-day-a-week shows.
Las Vegas is also a jumping off point. Five hours in different directions;
Grand Canyon, Zion, Bryce, and the North Rim.
I’d rather fly into Vegas and drive to LA, than fly direct. Same for Salt Lake city (best ski resorts in the country.)
BTW, some us who worked in Las Vegas in ‘85 flew to AC to look at a couple casino operations. After a day there, we cut our 5 day stay short and flew home.
They opened the Live cascino in Baltimore on Wednesday and on Saturday they showed on the local news a fight.
It looked horrible - like they were fighting over a
million dollars - turned out to be over pizza.
Gambling is a less than zero-sum industry;it always results in less total wealth.No new goods or wealth is produced,just the pre-existing wealth shuffled around at to the overall detriment of productive people.The gambling operators and their lackeys do well,as do the governments getting a share of the take in taxes.Eventually it always crashes when the supply of suckers falls below that necessary to fuel the system.Meanwhile many,many people will have lost their retirements,their homes and cars,and end up living in reduced circumstances.Gambling venues are predatory by nature.
Gambling was strongly discouraged for good reasons;the rush to legitimize and promote gambling by state governments beginning in the 1970’s lotteries was a cynical shortsighted move.It was already long known that the people who could least afford to lose money gambling are the people most likely to participate.
You have a great understanding of the perils of gambling. Unfortunately the American people do not.
I miss The Steel Pier,Roller Derby,and the dancing chicken in AC. (I grew up in Vineland)
As a kid in the 60’s we would drive over from Buffalo for a few days.
I remember riding bicycles on the boardwalk in the mornings and great Kosher food for dinner.
As a kid, the last time I was there the headliner on the pier was Gary Lewis and the Playboys. The opening act was Tiny Tim.
Don’t forget Margate’s Lucy, the elephant house.
Hey, cure for the homeless! Just send all the homeless people to occupy those thousands of vacant hotel rooms.
I heard that the state of NJ poured huge amounts of taxpayers money into opening the casinos. That Revel would not have ever even been built without $250 million in welfare from Porkus Christie....
Huge waste of tax dollars
The buildings could be turned into comfortable prison for non-violent offenders .Since we have lots of people whose incarceration with hardened criminals only leads to their being victimized further by the system or violent offenders this could be a solution.
Or make the disused casinos into resident hotels.There are plenty of people who really only need a place to sleep ,bathe, and watch TV/computer.
AC was always a dump and a ghetto, the boardwalk was full of bums, there is no large airport for the people to fly in. Once you go two blocks from the casinos you’re taking your life into your own hands. And why the city allowed more hotels to go up when neighboring PA and NY has gambling is beyond me.
And what about the poor people who lost their homes to eminent domain? what a shame.
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