Sunday, July 13, 2014

Atlantic City Casinos Biting the Dust

It appears the Atlantic City gambling establishment is reacting to Governor Christie's warning to shape up quickly.  As was predicted in an earlier post, how Atlantic City will deal with this warning is to retrench and close up some properties.  That is now happening.  The Atlantic Club casino closed in January and the Showboat casino will close in August.  It is reported that the Trump Plaza casino will close in September.  If the Revel casino can't find a buyer to rescue it and it closes, that would leave Atlantic City with just two-thirds of the major casino properties it started the year with.  Losing one-third in two-thirds of a year is a huge hit to the Atlantic City economy.

To save Atlantic City, a game changer is needed immediately.  Sports betting may be that game changer.  Now the raw revenues from sports betting will not be sufficient, but the fact that something new and unique to Atlantic City is in play will help draw casino patrons from competing jurisdictions like New York, Massachusetts and Pennsylvania.  It also helps New Jersey compete with sports betting that is currently underway in Delaware.

Can casino gaming in Atlantic City survive?  Time will tell.


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