Caesars Entertainment, the largest operator of casinos in Atlantic City, New Jersey, is looking for ways to downsize in the struggling market, including closing properties.
“We are looking at all of our options to reduce the cost of doing business here,” CEO Gary Loveman said after reporting a wider first-quarter loss. “All the businesses in AC are under tremendous pressure.”
Caesars has been struggling to remain solvent amid a glut of casinos and weak consumer spending, following a 2008 leveraged buyout that left the company with about US$23bn in debt. The company said in March it would close a property in Tunica, Mississippi. That move may set a precedent for other markets like Atlantic City, Loveman said.
“These markets can reach points when no new supply is indeed the right answer,” Loveman said. “In some cases reducing supply is the right answer.”
The company owns four casinos in Atlantic City - Caesars, Bally’s, Harrah’s and Showboat. Loveman didn’t say specifically that a casino would close. The company has already taken steps to cut costs, such as reducing restaurant hours, according to a spokesman.
