ATLANTIC CITY, NJ—As expected, CaesarsEntertainment announced today that itsThe Showboat Atlantic City Hotel andCasino will close effective Aug. 31.

The Las-Vegas-based company in its prepared statement says thedecision to close the property was due to “persistent declines inbusiness levels in the area exacerbated by the high property-taxburden in Atlantic City.” Approximately 2,100 workers will beaffected by the closure.

"While we regret the impact that this decision will have on ourShowboat associates, we believe this is a necessary step to helpstabilize our business in Atlantic City and support the viabilityof our remaining operations in the vicinity," says GaryLoveman, chairman and chief executive officer of CaesarsEntertainment. "Since 2006, revenue in Atlantic City has declinedby more than $3 billion and competition in the city has increased.The dynamic in Atlantic City has led us to the difficult butnecessary decision to close Showboat in an effort to help stabilizeour business there and support the viability of our remainingoperations in the vicinity. We sincerely appreciate the service,dedication and professionalism shown by the employees of theShowboat over the years to provide our customers with incredibleexperiences."