How many casinos can AC successfully have? Which casinos will hold shares once Ocean Resorts and Hard Rock open? It’s the burning question on everyone’s lips at the moment. Indeed, some think that seven casinos is the right amount for AC. Others believe that there’s still plenty of room for the market to grow.
Which casinos will hold shares once Ocean Resorts and Hard Rock open?
All and all, there’s no doubt that once both casinos re-open the existing ones will feel the impact. Perhaps positively, since the venues will draw crowds thanks to their entertainment programs. And other casinos may feel a pinch we think.
It could be the case for Caesars.
As you already know Caesars owns two properties in Atlantic City, Caesars and Harrah’s. Harrah’s is in a pretty good position once the two new casinos reopen because it is right next to the new hotels. Also, it’s worth knowing that Harrah’s recently completed a $140 million renovation. This massive project included an upgrade to the rooms and will draw crowds on their own merits.
But, it’s not the case for Caesars, because it’s a bit further from the hot new casino zone. Not to mention that it’s land-based revenues have not flourished in the past months. So Caesars entertainment, could if they wanted to, only keep their best property and capitalize on their assets. Especially since the casino real estate market is booming at the moment. Plus, the ShowBoat is rumored to open a casino next to Harrah’s.
Caesars CFO expresses concerns about the new competition.
Indeed in a March 19th interview Eric Hession, CFO of Caesars reportedly said. “We also expect more competition in Atlantic City as the Hard Rock (ex. Taj Mahal) is to open in the summer of 2018, and the Revel casino is to reopen at some point. Both openings will add competition and will negatively impact our Atlantic City operations.”
Anyhow, let’s see what the future has in store for Caesars. Will he conquer and thrive or fall under a very hard rock?