Resorts Casino in Atlantic City is struggling to keep its head above water during this time of economic uncertainty. Opening for business in May of 1978 it was the first Casino to open its doors to the public and began the whole casino culture on the Boardwalk of Atlantic City.
Resorts Casino was the only casino in Atlantic City until 1979 when others began to open along the Boardwalk. People would stand in line to get in to the Casino and it was very popular. The new casinos being built were larger and more grandiose, but Resorts decided to stay small in order to fill a niche of small but very good service and satisfaction.
It is unfortunate but Resorts Casino hasn’t paid its mortgage since last October and payments are around $360 million a pop. In August a petition was filed with the New Jersey Casino Control Commission so that ownership could be transferred to its lenders. If this petition is granted this would be the first time that a lender would take control of a casino. It has happened twice in Las Vegas with Greek Isles Casino and Cosmopolitan Casino but has never happened in the 31 year history of Atlantic City gambling. Once the transfer is made there is a real possibility that the casino could be closed or the new owners may decide to try and make a go of it in a less than satisfactory economy.
Because of the decision for the individual Resort Casino to stay small the casino enjoyed loyalty of customers and provided exceptional customer service. That didn’t seem to help in the recent recession in the Casino business. Smaller casinos did not fare any better than large ones; in fact they probably had worse problems. Resorts Casino’s is showing down 20.1 percent for the year to date. When all statistics are combined for all casinos in the Atlantic City market revenue is down 15.1 percent year to date. Because they are so small they are feeling the sting of the recession more than the larger casino and hotels. Lenders and the state are hoping that someone will want to take over the casino and see if they can turn it around.
If the transfer to the lenders is approved the Resort International Hotel, Inc. will continue to manage and control operations but the title will transfer to RAC Atlantic City Holdings LLC, an entity owned by Wells Fargo Bank NA. It is expected that the new owners would immediately put $8 million into the casino so that it has enough cash to meet its $15 million required reserve through 2010. The holding company will try to get the property up and running so it can be sold. The only other option for the small casino is to begin foreclosure and close it and no one wants to see that happen.
The Resort employees more than 2,300 employees and some have been there for years and even remember when the dealers, both men and women, wore tuxedos while at work.
Employees and patrons alike are hoping for the best with this little casino that has seen everything that has transpired on the Boardwalk.
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