Big Apple casinos could take a big bite out of Atlantic City gaming when they open. But opinions differ on the potential impact of full-scale casinos in the New York City area.
A recent panel discussion hosted by the Greater Atlantic City Chamber suggested ways to stay competitive even as AC recovers from the Covid-19 shutdowns and deals with inflation and flat gaming revenues, according to the Press of Atlantic City.
Speaking at the East Coast Gaming Congress earlier this month, Hard Rock International Chairman Jim Allen said at least one casino in AC could close due to competition a few hours to the north. Hard Rock operates a casino on the Atlantic City Boardwalk.
That said, the threat could become a benefit for any Atlantic City operator that manages to win one of the three available New York City licenses, valued at $500 million each.
The bidding will be fierce, as two of the licenses will likely go to Resorts World New York City in Queens and Empire City Casino in Yonkers, racetracks that offer slot machines but have no live-dealer table games.
“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 told the Associated Press.
But Gregg Klein, senior vice president and general manager of Harrah’s Atlantic City, said the operator who wins the final license could cross-market to players across two states. Harrah’s parent company, Caesars Entertainment, has bid on a casino in Manhattan’s Times Square.
“To me, that’s the benefit from it, that we’re finding and discovering new players and, hopefully, bringing them down here to Atlantic City,” Klein told the AP.
Michael Monty, general manager of Bally’s Atlantic City, sounded upbeat on Atlantic City’s continued relevance. “We’ve always been a destination city,” he said. “I don’t think that changes with the construction of New York casinos.”
But Mark Giannantonio, president and CEO of Resorts Casino Hotel, conceded that every casino in the market save three “are down” when it comes to gaming revenues. The winners are Borgata, Hard Rock and Ocean. “We’re not where we used to be, for sure.”
Panelists agree the resort should add new tourism-friendly attractions, like the indoor waterpark now under construction next to the Showboat hotel (once a casino). The city also needs better streets and increased transportation options, including more inbound flights to Atlantic City International Airport.
“We need some investment,” Giannantonio told the AP. That way, “the community itself will benefit, and the city will flourish for decades to come.”
