Atlantic City Gambling Industry Incurs Huge Losses and Counting

Atlantic City the once high roller Mecca of the East Coast has taken the world of casinos by surprise as it slowly and surely began to deteriorate and sink over the past few years. Main attractions like Trump Plaza, The Revel, and The Showboat have shut their doors and closed down for good.

casino ACIn 2006 neighboring state Pennsylvania granted lease and license to a number of casinos within its boundaries. In addition, the impacts of economic recession have had disastrous effects on economic revenue in Atlantic City.

Competitive industry

New Jersey has been in the casino industry for decades with the first ever casino in the state was opened in 1978 along the coast in Atlantic City. With a remarkable history of over $2.80 billion generated in revenue earned from casino games set in its records, New Jersey has been premium holiday destination that has catered to footfall of over 27 million visitors and tourists a year.

Gambling has been of crucial importance in terms of state economy, with a majority of jobs and positions oriented around the casino industry alone. As more casinos opened up in neighboring states like Delaware, New York, Pennsylvania, and Maryland, regular players and frequenters of casinos in Atlantic City preferred to stick to casinos located closer to their homes rather than travel distances to find a legal casino table or slot machine.

Same ‘ole AC?

Completely dependent and reliant on gaming revenues to sustain and thrive, Atlantic City is now suffering as residents face increasing unemployment caused by the crumbling casino industry.

Instead of taking advantage of its coastal features, Atlantic City has so far focused mainly on gambling market to survive. Neighboring states on the other hand have molded and diversified to offer indigenous entertainment attractions to keep people interested and eager to visit.

Atlantic City has started working on the frills as well spaces that offer complete family entertainment in aquariums, restaurants, shops and picnic spots in addition to the ever infamous boardwalk and marina. Even though the casino market has hit a speed bump, Atlantic City is beginning to reinvent itself as a more wholesome holiday destination. Moreover, the city is looking for people to come live in and utilize the immense expanses of available land to set up homes and businesses of their own.

Record Powerball Jackpot to be Split Between Two Winners

The lottery company Powerball claims that winners have been identified for their biggest ever lottery jackpot. The company is saying that two winning tickets have been bought, one in Arizona and the other in Missouri.

powerballThere is still a hunt going on to identify the winners. They know where the winning tickets were purchased, but have not gotten calls from either of the winning players. With a lottery this size, it is only a matter of time before people come to claim their prize.

This is the largest Powerball lottery in history. It is said to be worth around $590 million, with a cash out option of $390 million. That money would be equally divided among the two winners.

There were plenty of other prizes available. Powerball says that around 9 million people won some amount of money from this lottery. There are 60 people who won ONE million dollars each. These individuals got the first five numbers correct, but did not get the Powerball number of 6.

We do not know if the winning tickets were bought by an individual or by a group of people. This information will become available as soon as someone comes forward to claim their grand prize. Officials in Arizona and Missouri are remaining tight lipped for now. They will tell the public where the winning tickets were sold, but would prefer to wait for a few days.

It is being reported that this lottery reached record figures due to a late rise in the purchasing of lottery tickets. With news that the lottery was reaching record levels, even more people went and bought tickets. This positive buzz only added to the overall jackpot.

The odds of someone winning the Powerball grand prize are 1 in 180 million. 160 million people bought tickets for this lottery. Florida was a particular hot spot for lottery ticket purchases, with the state reporting that 200,000 tickets were sold EVERY MINUTE last Wednesday.

For more on this story, click here.

Canadian Businessman Ordered to Pay $13 Million to LV Casino

Semion Kronenfeld, a prominent businessman and high profile Canadian gambler, is embroiled in a court case in the United States. He is being charged with failing to pay a casino the money he owed. His debts to the casinos add up to a remarkable $13 million, with most of the money being due for over five years. The Las Vegas casinos spent a long time chasing after Kronenfeld in an attempt to get their money back, running out of patience after 5 years.

casinoThe 43 year old Canadian had an arrest warrant issued against his name in Clark County, with the charges listed as writing bad checks, getting money through false statements and felony theft. This is one of the most high profile and largest debt recollection cases in Las Vegas history, with Kronenfeld facing a lengthy jail term if he is found guilty.

False Information –

This case showcases the depths of Kronenfeld’s deception towards the casinos. When he first gambled with this money in 2009, he claimed that he was the owner of a wealthy investment company. It was on this basis that he was given a line of credit at both casinos. In addition, he made claims about having Israeli citizenship, incorrectly telling the casinos his name was Cronenfeld.

The money is owed to the Las Vegas casinos The Venetian and Green Valley Ranch Resort. He owes $8 million to The Venetian and $5 million to the second casino. Unfortunately for Kronenfeld, Nevada laws allow prosecutors to treat these documented IOUs as if they were bad checks. The government can collect 10% of the owed amount in various fees, giving them an additional incentive to prosecute.

It is not untypical for such cases to come before the prosecution’s desk, with many rich businessmen dealing in IOUs when they gamble millions in Las Vegas. However, 90% of these cases are resolved before they go to court, with the individuals in question returning the money they owe. Kronenfeld has made no attempts to pay back the casinos, which means criminal proceedings are a certainty.

Mr. Kronenfeld has now filed for bankruptcy. He is attempting to get away without having to pay back the money, but is unclear whether his bankruptcy filing will spare him in this case. A ruling on this case is expected within the next few months.

For more information on this Las Vegas court case, click here.

Deutsche Bank Sells Cosmopolitan Casino

Deutsche Bank has sold its primary gambling investment, Cosmopolitan Casino, for a whopping $1.7 billion. Cosmopolitan was bought by private equity company Blackstone, who are seeking creative management in order to assist in turning around the casino’s fortunes. The casino is a magnificent site, consisting of two modern towers and containing some of the best gambling areas in the world. However, the casino has failed to make a profit in any of the years since its $4 billion opening in 2010. The initial developer defaulted on the loan that was taken out to complete the project, handing the site to Deutsche Bank.

bar and casino

A straightforward statement by Deutsche Bank alluded to the casino’s lack of profits as the primary reason for its sale: “The bank is committed to reducing non-core legacy positions in a manner that benefits its shareholders.” Few financial experts are questioning this decision, while there are quizzical glances being thrown towards Blackstone private equity. Unless they have a great plan up their sleeve to get Cosmopolitan into the green, they are going to struggle to profit from this purchase.

The two Cosmopolitan towers are 52 stories high, with the casino having space for more than 3,000 rooms. It is perfectly located on the Las Vegas strip, yet fails to perform as well as its more storied gambling rivals. The site has lost at least $100 million every year since its opening. Experts have blamed this on the general slowdown in Las Vegas, but there are many who do not believe Cosmopolitan can succeed.

Sales figures for all Las Vegas businesses have shown that the strip is finally bouncing back from the 2008 recession. Hotel room prices, visitor arrival rates, and overall spending is on the rise. However, it remains to be seen whether Cosmopolitan Casino can do enough to prove that it is a better option for guests when compared to other casino spots on the strip.

For more information on this casino, check out the official website.

Scientists Create a Casino for Rats to Study Gambling Addiction

Scientists have taken a significant step towards understanding the chemical and scientific nature of gambling addiction. By setting up a rat casino, they are attempting to find new ways to treat compulsive gambling problems. Initial results have shown that the dopamine receptors in the brain must be blocked in order to beat this addiction.

Casino for RatsThis research was conducted by creating slot machine by situations for rodents to try out. The rats would gamble for sugar pellets by using a slot machine with three flashing lights and two levers. Many of their reactions, especially to near misses and wins, were similar to the reactions of humans when they are using slot machines.

The team from the University of British Columbia are focusing on the dopamine D4 receptor, which is said to be at the center of many behavioral disorders. When the rats at the rat casino were treated with dopamine, their behavior was noticeably different.

Paul Cocker is the leading author of this study. Teh PhD student from UBC had the following to say about this research:

“More work is needed, but our findings offer hope for the treatment of gambling addiction, which is a growing public health concern. Pathological gambling is now seen as a behavioral addiction in the same way as alcohol or drug addictions. However, we know so little about how to treat gambling addiction.
This study is the first step in showing that by blocking certain brain receptors we will be able to reduce the rewarding aspects of near-misses that lead to more gambling. These findings shed new light on the brain processes involved with gambling and gambling addictions.”

The study took 16 months to complete, with 32 lab rats used in the process. The lab rats were introduced to the small and easy to use slot machine. One lights combination signaled a win and the other combination signaled a loss. The rats that got the winning combination were rewarded with ten sugar pellets.

For more information about this study, visit this link on the UBC website.