CASINOS

Irene Leads to Washout of a Busy Summer Weekend

Atlantic City’s three-day shutdown is being estimated to have cost $40-$45 million in gaming revenue.

By Mike Pritchard
Add Comment Add Comment | Comments: 0 | Posted Aug. 31, 2011

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ATLANTIC CITY — One of the most economically damaging aspects of Irene comes from the loss of an August weekend’s business in Atlantic City and the rest of the New Jersey shore.

Atlantic City’s three-day shutdown is being estimated to have cost $40-$45 million in gaming revenue.

A similar three-day shutdown in 2006 (over a state budget showdown) cost the casino more than $50 million in revenue, but casino revenues have fallen since then.

Casino executives speaking to various media have estimated the following revenue losses: Golden Nugget, $1million; Resorts $3-$4 million; Caesars Entertainment (four casinos) $25 million.

Harder to estimate is the losses for Boardwalk and other shore businesses, who have lost a key summer weekend. Traditionally, shore businesses make back the bulk of their rents and overhead by late July to mid-August.

Late August weekends and Labor Day weekend are when most of those businesses make their profits. 

That impact is also felt along the entire New Jersey Shore, from Monmouth County to Cape May.

The state has announced an assistance program for businesses damaged by the storm, which also caused severe flooding throughout much of the state. Along with help with clean-up and repairs, It includes:

Access to lines of credit of up to $500,000 for businesses that need access to cash to improve their damaged property while awaiting insurance proceeds;

The availability of Disaster Unemployment Benefits to provide income security for those displaced workers suffering temporary storm-related job loss.

But the storm’s impact caused less physical damage along shore areas and for most businesses, the biggest loss was the washout of a busy summer weekend.


 

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