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Atlantic City casinos reopen, but losses may linger

Hurricane Sandy silenced Atlantic City casinos for nearly a week, but have reopened again.

Atlantic City’s 12 waterfront casinos came through Hurricane Sandy largely unharmed, and many were able to reopen over the weekend.Despite major damage suffered on the Atlantic City Boardwalk, casino industry officials say the gaming properties have not experienced the type of physical damage that would keep them from reopening.One Atlantic City casino, The Golden Nugget, reopened Friday afternoon, just two hours after getting permission from New Jersey Governor Chris Christie. A second, the Borgata Hotel Casino and Spa also open late Friday afternoon.Tony Rodio, president of the Tropicana Casino and Resort and head of the Casino Association of New Jersey said that while most of the casinos there could reopen within days of the storm hitting, the question was if customers could get there.“The bigger question is the infrastructure: access roads, power and the situation in the local communities where our employees and our customers live,” he said “There’s no sense opening if we can’t get people in here.”It was only the fourth time in 34 years that Atlantic City Casinos had been forced to close their doors. The shutdown was costing the casinos a collective $5 million a day in lost revenue each day they were closed for business.And while the casinos may be reopening, ratings agency, Fitch says the losses may linger. Fitch says the longer term effects on physical infrastructure and consumer sentiment in New Jersey and surrounding states could have a material impact on fourth-quarter gaming demand.“The bigger question for the industry remains the status of roadways and other infrastructure in the Atlantic City and feeder areas, which may limit the ability of casino employees and customers to get to Atlantic City’s 12 gaming properties easily,” the company said. “We also believe that regular customers in the region may be preoccupied for some time with storm recovery, potentially lowering visitation volumes for a few weeks.”Hurricane Sandy made landfall with hurricane force winds just a few miles from Atlantic City last Monday.Nine of the casinos are on the Boardwalk, facing the ocean; three others are in the Marina district, by the Inlet and bay. But most reported only minor effects, like some small water leaks or a handful of broken windows.“We had no real damage at all; I don’t know how we didn’t, but we didn’t,” said Don Marrandino, eastern division president of Caesars Entertainment. The company owns four of Atlantic City’s casinos: Harrah’s, Bally’s, Caesars and the Showboat.The two Trump casinos, Trump Plaza and the Trump Taj Mahal, suffered little more than a few water leaks, said Bob Griffin, CEO of Trump Entertainment Resorts. The “M”s in one of the “Trump” signs at the Taj Mahal blew off, and there were a few broken windows.“The real question is how soon our feeder markets will bounce back,” Mr Griffin said.The Borgata Hotel Casino & Spa had a half-dozen broken windows, but was otherwise unscathed, said Joe Lupo, the casino’s senior vice president.The big white ball atop Revel, the city’s northernmost casino, remained atop the building despite 90mph winds that raked Atlantic City during the storm. A small portion of the Boardwalk north of Revel broke up and washed away during the storm; part of the section that washed away had been damaged by previous storms and was already closed off to pedestrians.Mr Rodio said none of the Boardwalk casinos suffered damage to the walkway in front of their casinos.The Golden Nugget also was unharmed during the storm, although the Frank S. Farley Marina next to it was damaged by a 70-foot yacht that broke loose during the storm, Golden Nugget general manager Tom Pohlman said.