ATLANTIC CITY, NJ—As expected, Caesars Entertainment announced today that its The Showboat Atlantic City Hotel and Casino will close effective Aug. 31.

The Las-Vegas-based company in its prepared statement says the decision to close the property was due to “persistent declines in business levels in the area exacerbated by the high property-tax burden in Atlantic City.” Approximately 2,100 workers will be affected by the closure.

"While we regret the impact that this decision will have on our Showboat associates, we believe this is a necessary step to help stabilize our business in Atlantic City and support the viability of our remaining operations in the vicinity," says Gary Loveman, chairman and chief executive officer of Caesars Entertainment. "Since 2006, revenue in Atlantic City has declined by more than $3 billion and competition in the city has increased. The dynamic in Atlantic City has led us to the difficult but necessary decision to close Showboat in an effort to help stabilize our business there and support the viability of our remaining operations in the vicinity. We sincerely appreciate the service, dedication and professionalism shown by the employees of the Showboat over the years to provide our customers with incredible experiences."