Taj Mahal Casino To Close In December
By Dan Wing
PHILADELPHIA (CBS) -- 2014 continues to be a horrible year for Atlantic City, as news came Friday that the popular Trump Taj Mahal Casino and Resort would be closing on December 12th. It's the 5th casino closure this year. KYW discussed the impact with a local gaming industry analyst.
With 11,000 people out of job, it's obviously not a great day for Atlantic City.
"It's never good when thousands of people lose their jobs, so it is negative right now. But the state realizes that there's some serious problems there, and I think they're willing now to step in and help the city out," says Roger Gros.
Roger Gros is the Publisher of Global Gaming Business Magazine, and says that's the silver lining here. He feels the city has hit rock bottom, and there's nowhere to go but up.
"I think people are really going to be able to decide where we move forward, and I think that's the important thing at this point, that the city needs to look to the future and not to the past."
Gros says one of the first things that needs to change is the city's property tax, which has risen 50 percent in the past two years.
"For not only the casinos, but also the residents of the city who are, you know, starting to consider leaving because the tax rates are so high."
Gros doesn't feel there will be any more closings in the near future, but says that Bally's may be in a similar situation to the Taj somewhere down the line.
"I think the owners of Bally's, which is Caesar's Entertainment, they're going to be looking at how the market shakes out now that these other casinos have left the market, and we'll see if their revenues will increase enough so that they will survive too."
But Gros says that isn't likely to happen anytime in 2014, giving the city some time to get a new plan and focus in place for the future.
Atlantic City Mayor Don Guardian released a statement Friday night, saying he was sorry to hear about the latest closing.
"I know this is a very difficult time for all the employees who will be losing their jobs. I want them to know that the City of Atlantic City did everything they could to help keep the Trump Taj Mahal open. However, they still must pay their fair of taxes, just like our residents do.
Atlantic City has been an entertainment destination for over 160 years, and this one-of-a-kind entertainment destination is not going away anytime soon. We still have several other casino properties operating here in Atlantic City. As the casino gaming market right sizes itself, we will continue to focus on developing our non-gaming attractions and all the other great opportunities that Atlantic City has to offer."
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