In the past few months, there has been a lot of discussion surrounding the Atlantic City, it’s current state and its speculative feature. Some analysts believe the city grew too fast despite it lacking the ability to accommodate so many casinos, as evidenced by the many shuttered properties in the city.
On the other hand, some folks believe the city has the ability to withstand the growth rate it has been going at. This particular theory is supported by the fact that revenue in Atlantic City continues to increase, a trend that has so far continued upwards in three consecutive years. However, recent reports including a new article that is appearing in CalvinAyre.com is that Jim Allen, CEO of Hard Rock International (HRI), feels that the city is in its worst shape. He speculates that it’s, in fact, going down slowly.
According to Allen, the city has been declining day by day since the gaming giant first set up shop in the city in 2017. He blames the poor state of the city on the leadership. In a statement to Associated Press, he said that simple things that are needed to help one feel secure are lacking in the city.
There are streetlights that have been out of service for a long time, yet no one seems bothered to repair them. In a city that is overflowing with gaming venues, security should be the topmost priority for any leader.
HRI bought the Trump Taj Mahal from billionaire Carl Icahn for only $50 million. The gaming giant then went ahead to spend $562 million to renovate the property. In 2017, Hard Rock Atlantic City was launched and has been in business ever since.
However, Allen seems to be questioning the investment as it has not been bringing in the revenue it was expected to. Last year, it fell short of its goal by 10 percent to earn a total revenue of $350 million. It came in third after Borgata and the Golden Nugget.
Besides, last year it earned a gross profit of $29.5 million in the first three quarters. Its net revenue was $310 million. With the current trend, the company has quite some time before it can earn back its investment capital which was $612 million.
Frank Gilliam, the former mayor of Atlantic City was dismissed after he was found guilty of misappropriating funds. He was accused of misusing $87,000 belonging to a youth basketball program. Since then, debate on how the city should be run has been going on for a while.
The current mayor, Marty Small, wants the city to be run by the large city council as it has always been. On the other hand, some politicians and several casino owners feel the council should be disbanded and a smaller group created. The only way Small is going to win this debate is if he proves that his way works better by improving and maintaining high standards in the City.