Wednesday, September 17, 2008

Financial crisis could hurt the Tropicana

With the financial markets hurting recently, especially over the last week, gaming regulators fear that the Tropicana won't be able to find an owner, according to a report in The Press of Atlantic City on Wednesday.

The deadline to sell the Tropicana is looming. There is just one month left on the deadline, which has already been pushed back three other times. If that time comes without a hint of a buyer, the Trop could be sold in a bankruptcy auction.
The Trop isn't the only casino effected by the slow market. Pinnacle, which owns the former Sands property, razed the casino over a year ago and has yet to do anything more with the property. Pinnacle officials have said the shaky credit market has forced them to push back time lines for building the casino. Although, recently they have said they are committed to building the casino. All the billboards around town say so.
During tough financial times, casinos are going to be the companies that lose money. If people don't have money to lose, they aren't going to play (although that hasn't stopped some people in the past).

Poker tournaments have been a great way for casinos to get players. Take a $300 buy-in tournament. A person can win over $100K by taking home first place. That's a huge boost in the wallet and a massive upside based on the amount of money one puts into a tournament.
Winnings like that don't happen while playing craps or blackjack unless you're putting up the money first.
More problems are going to arise throughout Atlantic City has the economy struggles. Less gamblers means casinos will need less people to run the place. When layoffs and cutbacks begin to happen, then the Resort is really in trouble.

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