RCA in the commercial property press:

Atlantic City casinos need overhaul to survive

Reuters reports: Just four years ago, Atlantic City was on top. It had record revenue, a packed boardwalk and was the undisputed gaming capital of the Eastern Seaboard.

But since then, the city has been dealt a bad hand by the economy and the growing number of slot parlors popping up in places like Pennsylvania and Connecticut. Crowds are thinner and the casino floor buzz has waned. The city's casinos pulled in $3.2 billion in revenue last year, a 25 percent drop since 2006.

Now Atlantic City's survival hinges on a complete overhaul of the seaside city's offerings, two casino executives said during the Reuters Travel and Leisure Summit this week.

The latest threat is a planned partnership involving casino magnate Steve Wynn to open a three-story casino in Philadelphia -- a market from which Atlantic City has traditionally drawn lots of business.

Sands sold its Atlantic City casino to Pinnacle Entertainment (PNK.N) in 2006. Sands has since opened a casino in Bethlehem, Pennsylvania, which competes directly with Atlantic City casinos.

If Wynn Resorts Ltd (WYNN.O) builds a Philadelphia casino, it could lure even more tourists away from the city, said Michael Leven, chief operating officer of Las Vegas Sands Corp. Another source of concern: the legalization of table games in Pennsylvania.

Loveman said he did not believe any of the hotel-casinos would close, but said some could change hands or "limp along."

But other analysts and Atlantic City executives have said some of the weakest casinos could go belly-up as the market weakens. Four of the 11 hotel-casinos there are in some state of distress, according to Real Capital Analytics, which does not account for halted projects or those in construction.

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Posted by: Nina Turner

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