Gaming News

Credit crisis hits Atlantic City

ATLANTIC CITY, New Jersey -- As reported by the Trenton Times: "The credit crisis that has rippled through the mortgage and banking industries has made its way to Atlantic City.

"Dan Lee, the chairman and chief executive of Pinnacle Entertainment, said yesterday he may be forced to abandon plans to build a $1.5 billion gambling resort on the site of the former Sands if the credit markets don't improve.

"...Now, analysts say, Pinnacle's project may not be the only one put on hold.

"'The credit crisis has now effected Atlantic City,' Deutsche Bank analyst Andrew Zarnett said. 'These large projects are going to have a hard time on a temporary basis getting financed.'

"...The credit crisis is the latest in a string of bad luck that has plagued Atlantic City. Competition from Pennsylvania and a partial smoking ban caused revenue to plunge 5.1 percent last year -- the first time in A.C.'s 29-year history the industry ended on a down note. And the next few years will only bring more competition for gamblers as new slot parlors continue to open in Pennsylvania and New York..."

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