In the face of seven years of declining revenues, Atlantic City casinos may be turning to strip clubs to reverse their fortunes.
Atlantic City’s Trump Taj Mahal Casino Resort is bringing in New York City’s Scores to open one of its “gentlemen’s clubs” in early September, the first in the 35 year history of gambling in the New Jersey shore.
The success of the venture may ultimately affect the financial health of the city’s government, currently rated Baa1 by Moody’s and A-minus by Standard & Poor’s. The city’s casino revenues are off by more than 40% since 2007.
The city’s property assessments of the casinos are based on the casinos’ business volume. With declining volume, the casinos have been appealing their assessments. Continued successful appeals could put credit pressure on the city government, Standard & Poor’s associate director Andrew Teras said.
Property taxes account for 77% of the city’s revenues.
The club will allow Atlantic City to offer something Las Vegas does not have; while Las Vegas has strip clubs none are in their casinos.