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With New Jersey Governor Chris Christie lifting evacuation orders in Atlantic City, casinos were expected to re-open in the coming days. All operators report nominal damage, mostly to their roofs.
On Thursday it was also revealed that The Borgata Casino’s $393.5 million of 9.875 percent notes due August 2018 have fallen 2.25 cents on the dollar since the largest tropical storm in the Atlantic slammed the East Coast on Oct. 29.
“This was a lot lower than we thought,” said Susan Berliner, an analyst at JPMorgan & Co. She said in a telephone interview that she was “shocked” because the company had provided guidance of $47 million to $49 million. JPMorgan estimated $42 million, she said. “The monthly numbers appeared to be holding up OK, so that’s why it was pretty surprising.”
Fitch Ratings believes that Atlantic City will suffer from a loss of customers as New Jersey and New York residents deal with storm damage.
“The bigger question for the industry remains the status of roadways and other infrastructure in the Atlantic City and feeder areas,” Fitch analysts Michael Paladino and Bill Warlick wrote in a report today. That “may limit the ability of casino employees and customers to get to Atlantic City’s 12 gaming properties easily.”
The good news is that Gambling911.com reports decent search traffic inquiring about the reopening of Atlantic City casinos from neighboring Pennsylvania.
- Aaron Goldstein, Gambling911.com
