The state of New York intends to create three additional terrestrial casinos, one of which will be a lavish casino and hotel built on the former train yard located in Hudson Yards. The proposal encompasses an impressive array of features, such as more than 1,500 hotel rooms, numerous entertainment venues, and a remarkable selection of over 20 restaurants.
The emergence of the new development in Atlantic City has sparked concern. After overcoming the challenges brought by the pandemic, the city’s nine land-based casinos now confront various obstacles, such as the potential smoking ban scheduled for 2024.
Because Atlantic City is located near New York, its success is reliant on tourists from the neighboring state who visit the renowned gambling destination. At a conference focused on the casino industry, experts on the panel expressed concerns that the upcoming development could potentially lead to a significant decline of 20% to 30% in revenue. Additionally, they warned that certain casinos in Atlantic City might not be able to withstand this impact and could face closure.
Only the Atlantic City casinos generating the highest revenue will be able to withstand the current challenges and remain in operation.
At present, Borgata, Hard Rock, and Ocean are the top revenue generators in Atlantic City. Jim Allen, the chairman of Hard Rock Casino, acknowledged that the largest casinos will undoubtedly endure the upcoming changes in the industry. However, he also expressed apprehension regarding the ability of smaller casinos to adapt and thrive.
“It is a possibility. The revenue of Atlantic City heavily relies on upstate New Jersey and downstate New York, accounting for 20 to 30-plus percent. Undoubtedly, this will significantly affect the specific market.”
According to David Schwartz, a gambling historian from the University of Nevada, he believes that Atlantic City casinos have the potential to endure if they manage to create a compelling and appealing experience.
Although it is conceivable that some casinos may choose to close and leave the market, there is also a chance for casinos to broaden their range of attractions and entice New Yorkers to visit Atlantic City. It is worth noting that numerous individuals residing close to casinos opt to fly to Las Vegas annually. By diversifying their amenities and prioritizing excellent customer service, casinos might counterbalance the convenience of having “local” establishments in New York.
