Atlantic City’s Boardwalk gambling palaces will have a heavy competition once New York’s three downstate casinos are built, while another threat could loom as New Jersey’s Meadowlands also seeks a casino license.
Let’s take a look at the main concerns behind this expansion and analyze its potential impact on the region’s top-rated sportsbooks.
Boardwalk Blues
Licenses have not been issued nor have developers and gaming operators been chosen for the three available downstate New York casino licenses. Still, that time is nearing and although New York City is a 2 ½ hour drive from Atlantic City’s famous Boardwalk casinos, those yet-to-be-built casinos in and around the area could siphon as much as 20 to 30 percent off of the casino business at any of the nine Boardwalk gaming resorts.
Jim Allen, chairman of the global Hard Rock casino, entertainment and hospitality company, spoke at a gaming industry conference last year and said, “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 on this particular market.”
Allen also added, “So you have three or four that are very strong, and then I think there’s a question as to what happens in that next level down. I think it’s a concern that if these other casinos don’t perform, then inevitably from a business standpoint, is there vulnerability? I don’t think that changes unless there’s enhancement to the perception of Atlantic City.”
When asked about the far-reaching consequences of increased competition from downstate New York casinos, David Schwartz, a gambling historian with the University of Nevada Las Vegas, believes much of the damage can be neutralized if changes are made early enough.
“While it’s possible that one or more casinos could fold their tents and exit the market, there is also an opportunity for casinos to expand their offerings and give New Yorkers a reason to drive down to Atlantic City,” Schwartz said. “After all, millions of people who live within a short drive of casinos fly to Las Vegas every year. Diversification of amenities and a focus on superior customer service for gamblers might offset the convenience of ‘local’ casinos in New York.”
Meadowlands Threat
In addition to New York’s three downstate commercial casinos, there is also the potential for another threat a bit closer to home. The Meadowlands has already tried to get a casino off the ground but in 2016 New Jersey voters rejected a referendum question on the expansion of casino gambling in the state outside of Atlantic City.
Nevertheless, Jeff Gural, owner of the Meadowlands Racetrack in East Rutherford, New Jersey, remains undeterred. The referendum had asked voters to decide if they wanted casino gambling in northern New Jersey, which opened the door for several casinos to be built. However, had the question been asked another way, limiting it to one casino specifically at the Meadowlands, Gural feels the outcome could have been different.
“People don’t want a casino in the neighborhood,” Gural said. “If we make it clear it’s only at the Meadowlands, common sense tells you there will be a casino in the Meadowlands.”
Mark Giannantonio, president of Atlantic City’s Resorts Casino and the Casino Association of New Jersey, was optimistic, saying, “We have a two-year window to put Atlantic City in the best light … We need to reinvent ourselves as a real entertainment destination.”
