Atlantic City Executives Fear NYC Casinos Will Harm Gaming Revenues

New York City has the potential to add a brand-new casino to the downstate area, and executives of Atlantic City casinos are worried about revenue decreases. During the recent East Coast Gaming Congress, a panel of executives of New Jersey Casinos discussed the potential NYC casino and how it could impact Atlantic City earnings. Many feel that investments are needed to ensure the gaming town stays afloat.

During the panel, casino executives discussed the casinos coming to New York City and how it would affect the industry of New Jersey. Recent legislative changes allow NYC to provide three licenses for full casino gaming. Two existing venues are expected to receive a license, leaving only one for a new venue.

It is expected that a profit loss may be eminent due to the number of players that travel from the downstate area of New York to Atlantic City for gambling. Having an option in their backyard will keep many from making the trip.

Panelists discussed how costs have increased due to inflation and revenues remain flat. Add in the potential for new competition, which does not create a good scenario for Atlantic City. Jim Allen, the Hard Rock Casino AC chairman, stated in the panel that he feels revenues will be lost once the NYC market is operational. Depending on the impact, it could lead to at least one casino closing down.

The Hard Rock brand is among the bidders for the NYC license. All four individuals participating in the panel are connected to companies with a hat in the ring. Atlantic City currently receives 20-30% of revenue from the upstate area of New Jersey and downstate New York. It will certainly have an impact once the industry is operational.

Opinions do vary on what the market could look like once NYC casinos are offering standard slots and table games. Gregg Klein, Harrah’s Resort Atlantic City senior vice president, and general manager, stated that it could be that NY and NJ will create a ‘pipeline’ for players who are living and visiting the East Coast.

Caesars Entertainment, the parent company of Harrah’s, is yet another company hoping to offer services in NYC. The company has a plan to build a casino in Times Square. For Klein, he feels that the benefit is that both areas will find new players and bring them to Atlantic City via the NYC venues.

If a company can secure a license in NYC and they already offer gaming in Atlantic City, promotions or experiences could be created to join the two. With a little effort, the brand with two licenses could bring players from both areas to the other, which would help push traffic.

More investments must be made to keep the Atlantic City area as a top destination. Suggestions during the panel include upgrading the Boardwalk and improving transportation options. More flights to the local airport would also help to boost the number of tourists visiting the area.

New amenities are entertainment are also a plus. A water park is coming to the area next to the Showboat Hotel, and many casinos in the area are working on updates and renovations to guest rooms and the property overall.

It is unclear what would be in the works, but we should see plans coming to fruition or at least ideas for changes soon. The process of creating fully functioning casinos for New York City is still in the early stages. Atlantic City officials still have plenty of time to develop ideas to try and keep tourism thriving as the competition in nearby New York grows.