Nothing but snake eyes for Atlantic City casinos

ATLANTIC CITY, N.J. — Uncertainty has always been a way of life for casinos who make their money on games of chance. But now, Atlantic City casinos are looking at their own futures with uncertainty.

Donald Trump quit as chairman of the casino company he once ran, and wants his name off the three casinos that have been synonymous with Atlantic City for decades, now that they're in bankruptcy for the third time.

The Tropicana Casino and Resort will file for bankruptcy next month, and Resorts Atlantic City — the first casino in New Jersey — could also become the first to be foreclosed on.

Since gambling was legalized here nearly 31 years ago, never has the country's second-largest casino market gone through this turbulent a time.

In addition to the economic slump, which leaves people with less money to gamble, Atlantic City's 11 casinos are being battered by fierce competition from slots parlors in Pennsylvania and New York. Those gambling halls are attracting people who recently had no choice but to come here unless they wanted to get on a plane to Las Vegas, or drive to faraway casinos in other states.

"We've never seen it like this," said Linda Kassekert, chairwoman of the New Jersey Casino Control Commission. "This is a global recession, and the impact on discretionary income, you just see it immediately."

Last year, gambling revenue at Atlantic City's casinos fell 7.6 percent. The year before that, it was down 5.7 percent.

About 2,700 fewer people are now working in Atlantic City casinos than were employed a year ago. That's a 7 percent decline, and additional layoffs are being threatened.

"None of us could have predicted two years ago the way the world is now," said Nicholas Ribis, co-owner of Resorts, which is among the worst-performing casinos in Atlantic City. "I'm not saying this town is going to be back where it was two years ago. I wish it was.

"It's tough to get people to come," he said.

Resorts became the first casino outside Las Vegas when it opened in May 1978. But it remains one of the smallest gambling halls in town, and has not kept pace with newer, hipper casinos like the Borgata Hotel Casino & Spa.

Resorts' parent company, an affiliate of Los Angeles-based Colony Capital, stopped making payments on a loan in November, saying they just couldn't afford it.

That prompted the lender, Column Financial, to ask the casino commission for permission to foreclose on Resorts. A decision could come in two weeks.