Update: Showboat Atlantic City to Close Aug. 31

ATLANTIC CITY, NJ—As expected, Caesars Entertainment announced today that its The Showboat Atlantic City Hotel and Casino will close effective Aug. 31.

The Las-Vegas-based company in its prepared statement says the decision to close the property was due to “persistent declines in business levels in the area exacerbated by the high property-tax burden in Atlantic City.” Approximately 2,100 workers will be affected by the closure.

"While we regret the impact that this decision will have on our Showboat associates, we believe this is a necessary step to help stabilize our business in Atlantic City and support the viability of our remaining operations in the vicinity," says Gary Loveman, chairman and chief executive officer of Caesars Entertainment. "Since 2006, revenue in Atlantic City has declined by more than $3 billion and competition in the city has increased. The dynamic in Atlantic City has led us to the difficult but necessary decision to close Showboat in an effort to help stabilize our business there and support the viability of our remaining operations in the vicinity. We sincerely appreciate the service, dedication and professionalism shown by the employees of the Showboat over the years to provide our customers with incredible experiences."

Caesars remains the largest operator in Atlantic City. The companuy is developing a new, state-of-the- art meetings facility adjacent to Harrah's Atlantic City and is pursuing other opportunities to stimulate new visitation and growth, including recently overhauling the gaming floor at Bally's and investing in new dining options throughout the company's Atlantic City footprint. The company has not yet determined what will become of the Showboat property and land. Caesars states that it intends to collaborate with city and state officials as it evaluates alternative uses.

Showboat will remain fully operational until its closure and will honor all room reservations and events until that time. Customers with reservations after Aug. 31 will receive assistance in finding alternate accommodations.

Caesars Entertainment acquired Showboat Atlantic City by purchasing Showboat Inc., in June 1998.

Reports surfaced earlier today of the impending closure anouncement when Unite Here Local 54, stated that The Showboat Atlantic City Hotel and Casino woud announce today that it will be closing soon. Local 54 President Bob McDevitt says that workers will be receiving required WARN notices today of the impending closure of the casino hotel.

“I know that the workers are getting issued WARN Act notices tomorrow,” McDevitt said on Thursday. “We were notified by the company today and we began notifying the workers immediately.”