Casualties mount in AC market

March 04, 2008 7:00 AM
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Staff & Wire Reports | Atlantic City’s casinos, once thought virtually recession-proof, are now becoming victims of the sluggish economy.

The credit crisis has claimed two projects so far, and could spread out to threaten other developments and the sale of the Tropicana Casino and Resort, analysts told the Press of Atlantic City.

The Atlantic City Hilton Casino Resort, hurt by a nearly 8 percent drop in gaming revenue last year, disclosed in late January that it would put a proposed billion-dollar expansion on hold until the economy picks up and the credit markets recover.

The second casualty came last week, when Pinnacle Entertainment Inc. announced it would delay construction of its proposed $1.5 billion megaresort until 2009 and could scrap the project altogether if the credit markets don’t improve.