Atlantic City casinos about to go bust, but baby don't need shoes at the Shore
Filed under: Real Estate, Travel, Recession
Are the Atlantic City boardwalk casinos about to topple like a stack of dominoes? The three Trump properties -- the Taj Mahal, Trump Plaza, and Trump Marina -- are in trouble, on their way to bankruptcy or worse. And Resorts, the original boardwalk casino, is facing foreclosure.
Resorts Atlantic City's current problem is dire, although it has been in bankruptcy before -- it was also previously owned by Donald Trump's group and also Merv Griffin. It is now in a court battle to hold onto its casino license as a group called Column Financial, which is its main lender, attempts to take it over in a foreclosure action.
What has happened since Resorts opened as the first casino outside of Las Vegas in 1978? The casino ushered in an era of gambling expansion that has still not stopped. It set the tone for the building of the strip that was to come, and for the last 31 years has stood in the middle of all the glitz and glamor.
You can blame a lot of things for the downfall of this quiet giant, not just the sour economy. Resorts, and the rest of the casinos in Atlantic City, are throw-backs to an era when the notion of a "strip" seemed to work: All you had to do was stack up a bunch of casinos next to each other and try to create a destination out of it.
But that never really worked in Atlantic City. As Vegas learned to expand and create family attractions, lavish shows and concerts and celebrity dining experiences, Atlantic City did not. While A.C. has the advantage of the beach, Vegas has the advantage of land mass. It could expand beyond one street and create a kind of suburban destination that could support a lot more clout as a destination. The strip in A.C. stayed right along the boardwalk, however, and the rest of the little town suffered greatly. Walk even 50 feet from the bright lights of the casino lane and you are in a desolated area full of Cash4Gold shops and peep show halls.
The only expansion that went on was to the "marina" area, not an easy commute from the boardwalk. That area is still building, which signals more than ever that the traditional strip is dead. People who come to gamble and play want a kind of suburban experience, which the boardwalk was never able to provide. Perhaps the big spenders don't want to look out onto the cigarette-butt littered beach while they dodge panhandlers.
My family is from the area, and we've gone through every iteration of Atlantic City. My mom went to the illustrious Atlantic City High School, which sounds like a joke to most people who don't know the area. I spent a lot of my childhood standing on the beach watching old hotel after old hotel being blown up for new construction. My brother worked at Resorts to help put himself through college. I worked at Bally's Park Place. My grandmother was a bookkeeper for the casino workers union, and she died holding onto many secrets. Let's just say that when we took her to see Hoffa, she came out white as a sheet.
As a long-time resident, I'm not so upset to see the downfall of these iconic casinos, even Resorts. Atlantic City has always been at its best as a family beach resort, where local people converged in the nice weather to enjoy the waves. The casinos, to me, were simply a place where you could stop for a bathroom break on boardwalk bike rides. I won't be sorry to see them go.
So go home, shoobies. All I need to keep me happy is a few fudge shops and some skee-ball arcades.
What has happened since Resorts opened as the first casino outside of Las Vegas in 1978? The casino ushered in an era of gambling expansion that has still not stopped. It set the tone for the building of the strip that was to come, and for the last 31 years has stood in the middle of all the glitz and glamor.
You can blame a lot of things for the downfall of this quiet giant, not just the sour economy. Resorts, and the rest of the casinos in Atlantic City, are throw-backs to an era when the notion of a "strip" seemed to work: All you had to do was stack up a bunch of casinos next to each other and try to create a destination out of it.
But that never really worked in Atlantic City. As Vegas learned to expand and create family attractions, lavish shows and concerts and celebrity dining experiences, Atlantic City did not. While A.C. has the advantage of the beach, Vegas has the advantage of land mass. It could expand beyond one street and create a kind of suburban destination that could support a lot more clout as a destination. The strip in A.C. stayed right along the boardwalk, however, and the rest of the little town suffered greatly. Walk even 50 feet from the bright lights of the casino lane and you are in a desolated area full of Cash4Gold shops and peep show halls.
The only expansion that went on was to the "marina" area, not an easy commute from the boardwalk. That area is still building, which signals more than ever that the traditional strip is dead. People who come to gamble and play want a kind of suburban experience, which the boardwalk was never able to provide. Perhaps the big spenders don't want to look out onto the cigarette-butt littered beach while they dodge panhandlers.
My family is from the area, and we've gone through every iteration of Atlantic City. My mom went to the illustrious Atlantic City High School, which sounds like a joke to most people who don't know the area. I spent a lot of my childhood standing on the beach watching old hotel after old hotel being blown up for new construction. My brother worked at Resorts to help put himself through college. I worked at Bally's Park Place. My grandmother was a bookkeeper for the casino workers union, and she died holding onto many secrets. Let's just say that when we took her to see Hoffa, she came out white as a sheet.
As a long-time resident, I'm not so upset to see the downfall of these iconic casinos, even Resorts. Atlantic City has always been at its best as a family beach resort, where local people converged in the nice weather to enjoy the waves. The casinos, to me, were simply a place where you could stop for a bathroom break on boardwalk bike rides. I won't be sorry to see them go.
So go home, shoobies. All I need to keep me happy is a few fudge shops and some skee-ball arcades.
Reader Comments (Page 1 of 2)
2-17-2009 @ 2:39PM
bobby said...
Yes your memories are valid. But New Jersey should be upset with it's politicians they could have taken a strong look at the gambling business and moved it throughout the state to allow people a choice of destination. The Casino operators were very much at fault also they wanted nothing other then to keep a captive audience inside it's four walls, buffet's and space in front of the ocean.Until they gave passage to Trump to expand into other properties and Harrah's to buy up all the others. They all share the same response as to suffer from there Greed. You will get your beach back and very soon go back to a five month town. Good Luck!!
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2-17-2009 @ 2:50PM
BHarrison said...
Having been to Las Vegas many, many times during the last 15 or so years, I am really not a gambler, which is a losing proposition for more than 90% of the gamblers. The problem is that after decades, the economy of these areas becomes entrenched in and dependent on the casiono business . . . employees, contractors, vendors, hotel industries . . . an entire industry of many thousands of individuals structured to support the casinos. The loss of these "businesses" will require difficult and painful adjustments by all of these people. Then Atlantic City's shore line will be blighted by these monstrous empty white elephants that have no other practical, functional use. Then looking back to the orginal promises of the prosperity that all of this was supposed to deliver, one can only lament the gullibility of the citizens to approve it all from the outset. In the long run, was tehre ever enough profitability to justifyany of it for the good of society . . . especially when they have filed banruptcy so many times in the past?
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2-17-2009 @ 2:52PM
carmen said...
As a lifelong NJ resident I know firsthand what is happening to the casinos. Atlantic City is one of the most corrupt city governments ANYWHERE in America. You need a powerful computer to track all of the mayors, city councilmen, inspectors, etc who have either been indicted, gone to prison or just disappeared over the last 35 years.
The casinos are over regulated, and with the passage of the non-smoking bill that essentially eliminates smoking on the casino floor, the death knell has been rung. There were non-smoking areas before, but now there are only tiny smoking areas while the vast floor is non-smoking. I do NOT smoke, but when at a casino I know what to expect; people gambling, drinking AND smoking. The government just sent all these players out to PA, Foxwoods, Mohegian Sun with these regulations; and they wonder what is going on.
I laugh at the author who MUST be about 100 years old, because Atlantic City was not relevant for 30 years BEFORE the casinos came. Yes, there is still blight in the city, BUT there were many plans to bring the casinos off the ocean into the city, ALL of which were shot down be corruption. Yes, you'll get your boardwalk back, but the only people who will visit are those who can't go anywhere else, and those living under the boardwalk. Hope it brings back memories.
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2-17-2009 @ 3:17PM
stew said...
one of the biggest problems with atlantic city is the failure to have sports gambling. this would have brought untold amounts of revenue to the gambling halls. but, besides this, the writer is correct when he talks about the failure to improve the rest of the city. i've been to vegas many times, and to atlantic city numerous times. the boardwalk in atlantic city is rife with beggars. you can't walk 50 feet without being harrassed by them, or the "performers" looking for a donation. you don't see any of that in vegas. atlantic city could have become a destination for families....but, there is nothing besides the ocean (in the summer) and a few arcades for the kids. its pitiful that over-regulation has made atlantic city what it is.
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2-17-2009 @ 4:15PM
Vinny said...
the problem there si the fact that all of the major sport leagues would force their teams to leave the state if they allowed sports betting. The NFL, NBA, NHL and MLB state in their bi laws that no team in their league can play in a state that has sports betting. Thats why Las Vegas cannot get a sports team no matter how hard it tries
2-17-2009 @ 3:41PM
larna said...
I don't feel sad about it. These gambling spots just suck the money out of the addicted gambler, like a smoking room would enable smokers to blacken their lungs. One improvement on Pres. Obama's package would be to close all of them.
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2-17-2009 @ 3:42PM
Natsfromftmyers said...
Over- regualted indusrty and an under-regualted local governement. Perfect together.
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2-17-2009 @ 4:04PM
JTB said...
Carmen has the most valid view. The author's comments reflect no understanding of what AC was like pre-casinos - a decaying dowager of a resort ready to wash away in sepia-stained memories. The author yearns for the time when it was a "family beach resort." Please. From the 1920's to 1950..sure. But, as any slightest degree of research would reveal, the expansion and afforadability of jet travel after that time sent vacationers to more distant and exciting locales. Atlantic City had nothing to offer, except the Miss America Pageant. By 1970, it was on life support. And while she acknowledges she and her family enjoyed gainful employment through the casinos, she'd just prefer they all go away. Wonder what college education would have been funded by staffing a fudge shop...that only had her as a customer.
No doubt, Atantic City has had its problems and many steps could have been taken to improve the situation. But, by any financial measure, the "promise of prosperity" was delivered over 30 years with billions in investment, millions in taxes and thousands of jobs and careers.
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2-17-2009 @ 9:27PM
Marlene Smith said...
Right on!
2-17-2009 @ 11:41PM
HG said...
Completely agree with JTB and Carmen. Both have valid viewpoints. As far as the author, I get the impression that this article was written by a novice writer. She seems to lack any understanding of the real scope of the situation. "While AC has the advantage of the beach, Las Vegas has land mass"??? Hmm I'm still scratching my head trying to understand her point. Where would you like to vacation this summer, dear? Beach or Land Mass? I guess I'm missing her point if indeed she had one in mind. Atlantic City does indeed have top name entertainment (Thank you Borgata) world class dining, good (not great but good) shopping, and all that brings NJ and her shore town a good stream of revenue.Not only was this article poorly written, it was written from a teenagers emotional perspective. It would not have cut it as a college essay. It should not have cut it to a newspaper.
2-17-2009 @ 4:31PM
JOANN said...
RIGHT ON JTB. HAD STEVE WINN BEEN ENCOURAGED TO STAY AND OTHER FACTORS BEEN MORE WISELY CONSIDERED, ATLANTIC CITY WOULD HAVE THRIVED. CLOSING THE CASINOS NOW WOULD BE DEVASTATING TO THE AREA. YOU MAY LIKE TO BIKERIDE, BUT I LOVE ALL THE ENTERTAINMENT FACTORS THAT COME WITH THE CASINOS. YOU CAN'T GO BACK TO WHAT IT ONCE WAS, IT WILL GO BACK TO THE SLUM IT WAS BEFORE CASINOS. AND YES, I DID LIVE NEARBY IN NORTHFIELD TO SEE IT THEN AND NOW.
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2-17-2009 @ 6:54PM
Bill said...
The main reason the casinos in Atlantic City and even Vegas are hurting (besides the economy) is over the past 15 years or so casinos have popped up in many states. It use to be pretty much if you wanted to gamble you either went to Vegas or Atlantic City. Now for many people it is much easier and quicker to go to casinos in their state or surrounding states. For example, West Virginia, Delaware, Pennsylvania and soon Maryland have several casinos as well as a few North Easterner states. As a result, the casino industry has become no different than any other industry where more and more competition has caused the wealth to be shared among many others. As a result, the casinos are paying out less and less to its customers and are bringing in less and less revenue.
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2-17-2009 @ 4:47PM
Ray said...
What a shame. I opened Resorts way back when.
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2-17-2009 @ 5:01PM
Maureen said...
What do you mean opened Resorts? Did you own it or did you do a show on opening night? Or were you the manager on opening day?
2-17-2009 @ 5:17PM
Bronx Boy said...
Take away the Shoobies and the casino industry and the Jersey shore would be devestated. Three out of four people would be on government assistance. For every tourist or gambler that's lost, there is a corresponding hospitatlity industry job that will be lost, not to mention the merchants who survive on the tourist and gambling dollars and on the locals who work in the casino and tourist industries. Be careful what you wish for.
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2-17-2009 @ 5:11PM
eric said...
Dont believe in gambling. Do not like to lose my money.
Remember going to Atlantic City with my dad for business conventions. I remember the Traymore, Carlton, Convention Center, Mr Peanut and the penny arcades. Well maybe we are going full circle. Of course, the penny arcades will be dollar arcades but bring back skee-ball.
Lol...
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2-17-2009 @ 5:16PM
Anastasia Beaverhausen said...
Turn them into hi-rise apartments with shopping in the gaming area, a little bistro, a movie theatre, barber & beauty shops...there is always a silver lining if you look for it.
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2-17-2009 @ 5:25PM
Janet said...
I have to disagree with the writer of this article... My husband and I enjoy gambling trips. It is a form of entertainment for us and we have visited many destinations. I have been to AC many times over the past 20 years and it just keeps going downhill. There does not appear to be any effort made to control the pan handlers and derelicks. It is not safe to walk 100 feet into the city and forget the boardwalk after dark. I can't count the times we have been approached by some pretty scary people. We took the bus from the marina area to the boardwalk and it was frightening! No one wants to feel threatened on vacation. In fairness I have to say that we ran into the same think in New Orleans a few years ago and have not been back. In addition to the crime and filth,There is also the greed. Watered down drinks, flat beer, expensive (terrible) food and service, and second rate shows. We go gambling expecting to spend money and we budget for it but that does not mean we wish to be robbed or treated poorly! I also have to agree with Carmen. When they cut smoking they lost HUGE crowds. We no longer go to AC or to Deleware because of the no smoking. It is cheap enough to fly to Vegas,Reno, the Gulf Coast, CT or PA. You can have your regulations and your opinions about gambling, smoking and drinking but I can choose where to spend my money and it won't be in AC or Deleware.
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2-17-2009 @ 5:30PM
bob said...
good riddance. i went to a concert at the taj mahal recently. while the concert was great the rest of AC is one giant rip off. 7 bucks for one bottle of beer and 7 bucks for a small cup of plain coke. the poker rooms were crowded with a long waiting list and the slots just suck your money. and lets not forget the gangs of blacks terrorizing you as you try to walk on the boardwalk. i'll NEVER EVER go back.
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2-17-2009 @ 5:53PM
Caprae said...
I love Vegas, but "went" to Atlantic City 10 times more often. Loved the old time flavor of the little shops on the Boardwalk, didn't even mind the street performers, and the beach was an added attraction, if just for atmosphere. Even the marina was refreshing. It seems that as soon as the smokiing bans were placed, any casino struggling at all, was now headed for doom. I, personally, was waiting for the NJ government and people to wake up and give freedom of choice and capitalism a chance to redeem their state and AC, so that I could go back, donate my money, and enjoy myself. Do-gooders have once again saved the world as they have thrown the baby out with the wash water.
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