“The closure makes financial sense for Caesars and is a positive for the oversupplied Atlantic City market,” Bumazhny said. The Showboat generated $187 million in revenue and $28 million in cash flow for the 12 months that ended March 31. Shares of Caesars, traded on the Nasdaq, closed at $17.67, down 5 cents or 0.28 percent. Caesars had reportedly been trying to sell the casino but couldn’t find any possible buyers. Showboat’s revenue has declined 16 compared to 2013.Īnalysts said the closing wasn’t a surprise. “Showboat is generating positive (cash flow) and the move has the potential to move business away from Caesars Entertainment to Caesars Growth Partners.”Īccording to the New Jersey Division of Gaming Enforcement, the 1,331-room Showboat has collected $66.2 million in gaming revenue through May, which ranks the casino seventh out of Atlantic City’s 11 properties. “We believe the closure of Showboat will be more contentious among Caesars creditors than the closure of Harrah’s Tunica,” Fitch Ratings Service gaming analyst Alex Bumazhny said. The move, however, is expected to exacerbate the already strained relations between Caesars Entertainment and factions of the company’s debt holders, who are worried they could be left holding the bag as Caesars attempts to restructure its damaged balance sheet. Caesars has undertaken several reorganization efforts, including selling more than a half-dozen hotel-casinos and its interactive gaming business to an affiliated company, Caesars Growth Partners. The closings are being done as Caesars battles to get out from underneath its gaming industry-high $23 billion in long term debt.

31, the smallest and least profitable of the four casinos Caesars operates in New Jersey.Įarlier this month, the company closed Harrah’s Tunica in northern Mississippi. The Las Vegas-based casino giant said Friday it was shutting down operations at the Showboat in Atlantic City on Aug. has announced it will close an under-performing hotel-casino. (AP Photo/Wayne Parry)įor the second time this year, financially strapped Caesars Entertainment Corp.

25, 2013 for using unshuffled cards and violating money counting room procedures. New Jersey casino regulators fined the Showboat $7,000 Nov. This Jphoto shows a slanted hotel tower, left, of the Showboat Casino Hotel in Atlantic City.

Caesar hotel and casino atlantic city