For the first time since Resorts Atlantic City opened New Jersey's first casino 28 years ago, Atlantic City's 12 casinos have done something unprecedented: closed their doors. At 8 am, all the casinos were forced to close as a casualty of a New Jersey state budget impasse between Democratic Governor Jon Corzine and the state's Democratically controlled legislature. Corzine imposed the shutdown on all non-essential government services including state parks, beaches, historic areas and motor vehicle offices along with gaming activity as he attempts to force the legislature to address the state's on-going financial troubles. The shutdown will certainly have an impact on Atlantic City casinos earnings, which took in $16.3 million per day last year. The casinos, which failed to win court approval to operate without gaming commission oversight, are obviously hoping the shutdown ends sooner than later. Deutsche Bank analyst Bill Lerner estimates that MGM Mirage, which co-owns the Borgata with Boyd Gaming, would have to be closed 13 to 15 days to lose a penny per share of quarterly profit. Competitor Trump Hotels & Casino Resorts Inc., which emerged from Chapter 11 on May 20, 2005, would be put in an even more unsettled financial footing if the shut down continues. Trump's three casinos along with the other Atlantic City casinos will temporarily lay off 10,000 to 15,000 casino workers. "Certainly, during any period of a shutdown, the anticipated revenue loss would have a devastating financial impact, not only upon the casino industry, but also upon those who benefit from programs funded by the (casino) gross revenue tax," Linda M. Kassekert, the Atlantic City Casino Control Commission Chairman, said in a recent article from The Press of Atlantic City. — Gerald Magpily
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