From Atlantic City’s Credit Rating Cut Two Steps to Junk by Moody’s:
“The downgrade reflects the city’s significantly weakened tax base, revenue-raising ability and broader economic outlook,” analysts Vito Galluccio and Julie Beglin said in the statement. “These result from ongoing casino revenue declines, expected near-term casino closures, and the impact of sizable casino tax appeals, all of which has stemmed from increased competition from casinos in neighboring states.”
Atlantic City lost its regional monopoly as states including Pennsylvania, Maryland and New York legalized casinos or expanded betting to increase tax revenue. Casino revenue in the city has dropped for seven straight years, falling to $2.86 billion last year from a high of $5.07 billion in 2006, according to Bloomberg Industries.
The city’s 11 gambling houses account for almost half its jobs: 5,883 positions in a workforce of 13,500. The Atlantic Club closed in January, putting 1,600 people out of work. The closing of Caesars Entertainment Corp.’s Showboat on Aug. 31 will wipe out 2,133 jobs. Trump Plaza Hotel & Casino said it plans to close Sept. 16, taking away another 1,009. Revel, the $2.4 billion complex that employs 3,106 people, is seeking a buyer in bankruptcy.
But rejoice! Nevele Casino is going to be the answer to Ulster County economic woes…
– Jon Dogar-Marinesco
An aspect of junk is the thought that gambling is going to solve a state’s financial problems.
IF…. there is a casino chosen for Ulster County, they will import many experienced. laid off AC employees instead of trying to train the rubes that live in the hills surrounding Ellenville. Let’s face it, that area is filled with red necks and gang bangers, neither of which are suitable for casino employment outside of the kitchen, cleaning, or tending to the grounds. Nice try Hein, but the only thing that will solve the unemployment problem in our lifetime for Ellenville is another jail. You can use the red necks to staff it and send the gang bangers to their new home.