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US – New York casinos could force closures in Atlantic City

The opening of three new casinos in New York would lead to the closure of at least one casino in Atlantic City, according to Hard Rock Chairman Jim Allen.

Speaking at the East Coast Gaming Congress, which took place on April 19 to 20 in Atlantic City, Mr Allen predicted that the added competiton of more local casinos would see New Yorkers play local, with them accounting for between 20 to 30 per cent of AC’s casino revenues. 

“Atlantic City receives 20, 30-plus per cent 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,” Mr Allen explained. You have three or four [Atlantic City casinos] 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 an enhancement to the perception of Atlantic City. If we lose 20 to 30 per cent of our business, it is not going to be a great day for Atlantic City.”

The New Jersey casino market is currently led by Borgata, Hard Rock and the Ocean Casino Resort.

David Schwartz, a gambling historian with the University of Nevada Las Vegas, added “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. 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.”