Reno and Atlantic City casinos are the negative recipients of legalized gambling and a long-lasting recession.It’s business as usual for the Silver Legacy Resort Casino in Reno. It’s also a pending, voluntary Chapter 11 bankruptcy. In the 1,700-room resort, there are 1,800 employees whose jobs are presently secure. The casino is owned by Circus and Eldorado Joint Venture, and opened its doors in 1995. Bingo is one of the casino’s featured attractions too.
Staggering Debt at Reno Casino
A positive note by Gary Carano, CEO of Circus and Eldorado, assures that a healthy cash flow continues. The purpose of the bankruptcy is to reorganize the casino’s $142 million debt. The bankruptcy gives the Silver Legacy protection against creditors and time to negotiate with those creditors. The parent companies hope to establish a stable financial position through the negotiation process.
Joining Other Casinos & Bingo Halls in Bankruptcy
A University of Nevada economist, Bill Eadington, has observed that the worst gaming markets in America are concentrated in Reno and Atlantic City. The proliferation of Indian casinos, legalized gambling throughout the states and a lengthy recession have taken their toll on the former centers of the gaming industry. According to Eadington, bankruptcy has touched, or is being considered by MGM Resorts International. The CityCenter Las Vegas property, owned by MGM Resorts International, is carrying billions of dollars in debt. Another endangered casino, Harrah’s properties, a subsidiary of Caesars, has present debts in excess of $20 billion.
By contrast, the Chapter 11 that the Silver Legacy filed, was the result of a $142.8 million mortgage note due on the first of March. Various other Nevada and Atlantic City operations have filed a Chapter 11 bankruptcy. The Station Casinos of Las Vegas remained in bankruptcy proceedings for two years. After completing their reorganization, they emerged as a stable financial entity. Several Atlantic City properties owned by Donald Trump have gone through the process of Chapter 11. In 2010, the Siena Hotel Spa & Casino of Reno was closed down after filing for bankruptcy. That property was sold at auction. The new owners re-established the casino in 2011.
Legalized Gambling in 50 States – It’s True
Gaming has been legalized in every state in the U.S., other than Hawaii and Utah. Poker, blackjack, bingo, craps, slots, roulette and a host of other games are present in almost everyone’s backyard. As an added attraction, online gaming has brought the casino to the living rooms of America. Sweepstakes arcades, with poker, keno and bingo, have opened in Hawaii. Additionally, the Hawaiian legislature has been considering the legalization of gambling in an attempt to reduce their huge state deficit.
In Ohio, the voters approved the establishment of casinos in the cities of Cleveland, Toledo, Cincinnati and Columbus. A comprehensive gambling bill has yet to be enacted by the state legislature. Nevertheless, the first of the casinos opened its doors in Cleveland on Monday, May 14, 2012. Eadington, the economist and Reno gaming expert, has concluded that this is the wrong time, and Reno and Atlantic City are the wrong places for the existence of casino enterprises.
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