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Atlantic City Casino Force to Layoff Employees as Gaming Revenues Continues to Drop

Casino facilities in Atlantic City in the state of New Jersey cannot withstand much more of the pressure and problems that they have been experiencing over the past few years. The latest setback came in September 2009, when the casino industry slashed more than one thousand jobs in an effort to keep operating expenses down.

The casino gaming industry in Atlantic City has been severely affected by gaming facilities in neighboring states. New Your, Connecticut and Pennsylvania have all expanded their gaming option and it has led to a significant decrease in gaming business in Atlantic City. Casino officials said on October 5th, 2009 that something must be done to solve the problem immediately or they will be force to resort to do more drastic options to keep their heads afloat.

For the most part of the past thirty years, Atlantic City facilities had the gaming market cornered. That all started to change in recent years with neighboring states deciding to modify or change their gaming laws. Gamblers from other states are not travelling anymore to Atlantic City to play. It is not surprising at this time of the year for the casinos to terminate casino employees but the 1,067 job cuts this year was much bigger than in previous years.

The gaming industry is still the pillar of Atlantic City but the work force has now been scaled down to 37,337 employees. That total figure is almost four thousand employees lighter than it was a year ago. Aside from stiff gaming competition, the fragile condition of the economy is causing revenue at the AC casinos to continue to drop and the employees are going with it.

In July 1997, when Atlantic City gaming earnings was at its peak, employment total was over fifty-one thousand individuals. That means that over the past twenty years, more than fourteen thousand jobs have been lost, with many of those job layoffs coming over the past 2 years.

 

Sunday, October 25 , 2009
Brian Letendre