Posted on: June 8, 2022, 03:06h.
Last update on: June 7, 2022, 05:43h.
Caesars Atlantic City is awarded the majority of Caesars Entertainment’s $400 million capital budget for its three casinos in the city.
When Caesars Entertainment sought to merge with Eldorado Resorts in 2020, the New Jersey Casino Control Board signed the union, but with one very expensive condition – the new Caesars Entertainment must spend $400 million to update its three properties in the state. Caesars agreed to the terms and a lot of work has already been done at Caesars, Harrah’s and Tropicana.
But this week, Caesars revealed that its eponymous casino in Atlantic City will receive the most renovation dollars. The company expects around $200 million to be poured into the Boardwalk property which opened more than four decades ago in 1979.
This major investment demonstrates our continued commitment to improving the guest experience at our resorts as well as advancing Atlantic City’s tourism economy,” John Koster, regional president of the East Division of Caesars Entertainment, told the Associated Press.
Koster explained that a sizable portion of the $200 million has already been spent updating 750 hotel rooms and suites at Caesars Atlantic City. The property has retained its Roman theme with the renovations.
Caesars Atlantic City opened in June 1979, three years after New Jersey voters legalized commercial gambling in the city in 1976. Caesars was only the second casino to open, following the launch of Resorts in 1978.
With most rooms finished and ready for guests, Koster says the Caesars Casino floor is the next to be renovated. While the table games and slot machine layouts won’t change much, the Caesars executive says the entrance to the casino lobby from the Boardwalk will undergo a major overhaul.
Other planned projects include the renovation of the casino’s rooftop swimming pool. Two famous restaurants are also in the works. Gordon Ramsay plans to open his first East Coast Hell’s Kitchen restaurant at Caesars Atlantic City this summer.
Nobu, the famous restaurant concept owned by celebrity chef Nobu Matsuhisa and Hollywood superstar Robert De Niro, plans to open a restaurant inside Caesars later this year.
Caesars’ partnership with Nobu doesn’t end there. The top three floors of Caesars Atlantic City will soon be rebranded – and completely renovated – as Nobu Hotel Atlantic City. The hotel in a casino hotel will ditch Roman decor in favor of a Japanese-inspired motif.
Returning luxury to Caesars
After a tough 2020 operating year that kept Caesars Atlantic City in obscurity from mid-March to early July on state orders amid the pandemic, the property returned to profitability in 2021.
Caesars Atlantic City reported that the casino earned $62 million in operating income last year on net revenue of more than $245.1 million. But of the casino operator’s three properties in town, Caesars Atlantic City was the least profitable. Harrah’s reported gross operating income of $99.5 million in 2021 and Tropicana of $118.7 million.
Caesars conceded to state gaming regulators during its merger with Eldorado that the company’s Atlantic City casinos were sometimes overlooked during the company’s financial woes, leading the Las Vegas-based gaming company to file for bankruptcy in 2015.
Harrah’s hasn’t been so shunned, as Caesars has invested in the Marina District property to keep it up to date and competitive with neighboring MGM Resorts’ Borgata. The Tropicana underwent an extensive renovation beginning in 2010, when it was still owned by Tropicana Entertainment Resorts.
The $200 million spent on Caesars Atlantic City will ideally give reasons for the company’s Caesars Rewards members and other guests to consider staying on the boardwalk in the future.