Atlantic City business struggling in the current market, while Caesars looks for solutions to cut back costs from business operations.
The recent economy forced businesses to reconsider their strategies, as they try to regroup their plans from the dim situation. Caesars plans to cut cost by downsizing in the number of properties they hold in their name.
The recent popularity for mobile casinos in the state has not aided the casino group as well. Consumers have not been flocking to their casino as fervently as before, however one of the more serious issues remain with the fact that they still maintain a heavy debt from before.
In 2008, they were rescued from the financial meltdown by a leveraged buyout that left them with a debt of over $23 billion. In efforts to alleviate the damage, in March the casino announced plans to shut down the casino in Tunica, Mississippi.
Caesars’ CEO is highly concerned
CEO of Caesars Entertainment, Gary Loveman, conveyed his concern about the current market conditions in Atlantic City, as the casino looks at ways to reduce losses. “We are looking at all of our options to reduce the cost of doing business here.”
He further added that the trend is bad for all businesses in the once prosperous casino city. “All the businesses in AC are under tremendous pressure.”
Loveman gave his views on how the market works in regards to the recent gambling news, as he explains doing the opposite at times is the right way to go. “These markets can reach points when no new supply is indeed the right answer. In some cases reducing supply is the right answer.”