Experts suggest New York casinos could steal Atlantic City business
Panelists have said the three potential NYC casinos could cost New Jersey casinos up to 30% of revenue, or force them to close.
The East Coast Gaming Congress recently discussed the effects of three future New York casinos on Atlantic City gaming. Panelists have suggested that New Jersey casinos could suffer a 20-30% loss in revenue.
Jim Allen, Chairman of Hard Rock International, warned that Atlantic City casinos could be driven to close. He said to the Associated Press, “It could happen. Atlantic City receives 20, 30-plus percent of its revenue from upstate New Jersey and downstate New York, and there’s no doubt it is going to have an impact.”
Hard Rock is one of the bidders for a New York casino license, but also owns an Atlantic City casino.
Wall Street analysts at the conference also predicted that New York could compete with Atlantic City. Duane Bouligny, MD of Wells Fargo, said Atlantic City casinos must continue to invest in their businesses. Bouligny added, “The ones that don’t will get shut out of the market.”
Atlantic City has aimed to become less reliant on gambling. New hotel rooms, restaurants, entertainment venues, retail and other amenities have been built; a $100m water park is set to open this year, as is a Vegas-style residency show produced by Caesars Entertainment.
This is a theme that is becoming prevalent globally, with Macau, for example, also looking to diversify, having seen the success of Las Vegas in doing so.
Allen also said diversification into sports betting and internet gambling has, however, “created a misleading picture” concerning the revenue numbers reported by the state each month, as the money must be shared with third-party providers, rather than going only to casinos.
David Schwartz, gambling historian with the University of Nevada Las Vegas, said, “There is also an opportunity for casinos to expand their offerings and give New Yorkers a reason to drive to Atlantic City. Millions of people who live within a short drive of casinos fly to Las Vegas every year.”
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