Caesars Looks at Cutting Costs in AC
Describing its properties in Atlantic City as being “under tremendous pressure,” Caesars Entertainment is looking at ways to cut costs.
Chief Executive Officer Gary Loveman tells Bloomberg that its closing of a casino in Tunica, Mississippi could make it easier to shut down one of their four properties in Atlantic City: Caesar’s, Showboat,. Harrah’s and Bally’s.
“These markets can reach points when no new supply is indeed the right answer,” Loveman told Bloomberg News adding. “in some cases reducing supply is the right answer.”
The company has already made small cuts such as reducing restaurant hours.
Caesars Entertainment has reported a wider first-quarter loss as gambling revenue fell and the company’s casinos outside of Las Vegas faced stiffer competition and bad weather.
The Las Vegas-based company lost $386.4 million, or $2.82 cents per share in the period ending March 31. A year earlier it lost $217.6 million, or $1.74 cent per share.
All 11 of Atlantic City’s casinos have struggled, bringing in $221 million in March, down 7 percent from the same month last year. The Atlantic Club closed in January and Revel continues to look for a buyer. Caesar was rumored to be one of the interested buyers.
- Caesars Weighs Closing Atlantic City Casinos / Bloomberg
- Caesars looking to cut costs, could close casino / Press of Atlantic City
The Associated Press contributed to this report