Caesars Entertainment Unveils $400M Atlantic City Investment Plan

Atlantic City Casinos

When Caesars Entertainment merged with Eldorado resorts last year, the New Jersey Casino Control Commission or CCC put a big stipulation before signing off the merger. And that stipulation was for the company to invest a total of $400M in its Atlantic City casinos over a three-year period.

On Wednesday, Caesars Entertainment unveiled the details of that investment, which includes remodeled room towers, new restaurants and amenities, and more. The investment will kick off with a a $170M renovation that is expected to begin this summer.

Per Caesars President and Chief Operating Officer Anthony Carano in a press release:

“These exciting plans … will revitalize Caesars’ brand of hospitality, and will continue to position Harrah’s, Tropicana, and Caesars Atlantic City as leading resorts in the market. We remain bullish on Atlantic City, and this commitment will further position us for long-term growth and success.”

$170M Kick Off Renovation

The projects kick off with a $170M renovation of 600 guest rooms and suites at Caesars Atlantic City and Harrah’s Resort in Atlantic City.

According to the press release, the new room design at Caesars will feature a modern Roman aesthetic. The inspiration for the design was drawn from the local scenery in Atlantic City. These include beaches, the ocean, the boardwalk, and will feature hues of blue and cream accent colors that will be paired with contemporary furniture.

As for Harrah’s, its new design will display “rich elements that are fun, lively, and vibrant”. This theme will play off the resort’s sophisticated Marina District location. The refreshed rooms for Harrah’s Atrium Tower as well as Caesars’ Centurion and Ocean Towers will be open this summer.

Part of CCC’s Approval of Eldorado Merger

Caesars $400M investment in Atlantic City is part of the CCC’s approval of the merger between Caesars Entertainment and El Dorado. Apart from the required spending, Caesars was required to sell off one of its Atlantic City casinos to ease monopoly concerns. As a result, the company sold Bally’s to Twin River Worldwide Holdings in Rhode Island last year for only $25M.

Aside from Caesars and Harrah’s, the company also operates the Tropicana at the Boardwalk. Each of the three casinos are owned by VICI Properties, which is Caesars real estate investment trust or REIT. Caesars pays VICI annual rent to lease all operations inside the casino properties.

$24 Million Room Renovations at Harrah’s AC Are Set to Begin

Atlantic City has grown to become one of the country’s top gambling destinations. It’s home to several popular casino-resorts, including Harrah’s. This week, company officials announced an incredible $24 million plan for room renovations at Harrah’s AC. Harrah's Atlantic City Casino

It’s exciting news for fans of this hotel. Many have called for renovations over the past few years. Today, we’re going to talk about what will be changing here. We’ll also look at how the city is performing heading into 2020.

Let’s get into it!

Atlantic City’s Revenue Surges in Q3 of 2019

About a decade ago, Atlantic City was struggling to generate any money. The recession had taken a massive toll on the casinos operating in the city. Very few individuals were gambling here and as a result, many of the hotel-casinos were forced to permanently close their doors.

Things have completely changed over the past few years. Now, Atlantic City is one of the country’s top gambling destinations. It’s attracting visitors from around the country and most of the hotel-casinos here are now highly profitable.

For most of the year, gambling revenue has increased here. This was especially true in 2019’s Q3. Over those three months, gross profit from the city’s casinos increased to $26.5 million. This represents a massive 12.5% increase from the same period in 2018.

Borgata Casino continues to generate the most money here. In Q3, it earned $210,141,863. That’s more than double what the second-highest earner in the city, Hard Rock Atlantic City, brought in.

Harrah’s Atlantic City stands as a middle-of-the-pack casino in terms of revenue. This week, owners of this property announced a massive new renovation project.

Room Renovations at Harrah’s AC Will Soon Begin

Harrah’s Atlantic City first opened to the public in 1980. Since that time, the hotel-casino has undergone several renovation projects. Unfortunately, improving the conditions of the rooms hasn’t been a major focus point for the owners.

This week, officials in the company announced an incredible $24 million project. The money will go towards room renovations at Harrah’s AC. 416 of the rooms in the hotel’s Marina Tower will be redesigned and upgraded.

The project comes alongside a massive $300 million investment project by Caesars Entertainment, which controls Harrah’s. Ron Baumann, regional president of Caesars, recently commented on the renovation project to the media.

“We are thrilled to introduce our new Laguna Tower to our guests in 2020, which will complete over $86 million in upgrades to our rooms and suites within the last three years,” he said. 

If all goes according to plan, these plans will be completed in the early part of 2020. Hopefully, the room renovations at Harrah’s AC help to bring in more gamblers and increase the casino’s revenue.

Sports Betting Revenue Continues to Grow in Atlantic City

New Jersey was instrumental in getting the Supreme Court to strike down PASPA. Immediately after this decision, sports betting became legal throughout the state. Today, each of the casinos in Atlantic City operates both land-based and online sportsbooks.

Since becoming legal, sports betting revenue in the city has increased. Many of the casinos here are now working to improve their sportsbooks.

In September, Both Caesars Entertainment and MGM Resorts International opened brand new sportsbooks in the city. Caesars opened its new sportsbook inside Bally’s. It’s more than 15,000 square feet and features one of the biggest sports screens in the city.

MGM opened its new Atlantic City sportsbook in the Borgata.

The $24 million room renovations at Harrah’s AC are expected to be fantastic. We’ll need to wait a few months to see exactly what comes here.

Stay tuned for more Atlantic City casino news over the next few months!