Atlantic City Casinos Face Local and Out of State Threats

Atlantic City casinos have thrived for many years due to minimal competition in the local area and nearby New York State. However, that may all change soon as more gaming venues are set to arrive near the gambling town. Competitors will arrive in downstate New York by 2025-26, and the Meadowlands may soon have a new casino that will give the other New Jersey casinos a run for their money. The question now is, will the impact be major or minimal?

The new gaming venues will arrive at a time when Atlantic City's casinos are struggling to earn revenues. Seven of the nine casinos recently earned less than COVID-19 earnings, and the venues are falling far behind the NJ online casino revenues. 

In-person gambling totals continue to fall short, and with new gaming venues popping up, the numbers are expected to continue to dwindle. During the recent East Coast Gaming Congress at Hard Rock Casino, executives from casino companies across the US acknowledged the incoming New York City casinos and how they may create a real threat to Atlantic City gaming venues. 

During the conference, AC Mayor Marty Small stated that the city understands the threat of New York and will continue to do things to put Atlantic City in a prime position and diversify its options. Along with the New York casinos, there is also a threat in Northern New Jersey. 

The Meadowlands could be authorized to construct a new casino, which would create more competition. Proponents of the plan feel that voters in NJ will approve the casino. If they do, it would be another full-scale gaming venue in the Garden State. 

Casinos in AC may lose a large percentage of business due to the locations of the New York casinos. Take Hard Rock International, for example. The company operates a well-established casino in Atlantic City, having been in operation since 2018. The brand also teamed up with Steve Cohen, the owner of the New York Mets, to create a $8 billion casino at Citi Field. 

Opening three casinos in New York State could lead to a 20% or 30% loss for Atlantic City venues, including the Hard Rock. It’s essentially a win/lose situation. Hard Rock’s chairman, Jim Allen, says the company is prepared for the loss, but there is really no way to know just how much would be lost until the competitors are up and running. 

While Allen says Hard Rock is prepped and ready, he does not want to see competitors in AC close, and thousands of people lose their employment positions.

Many insiders feel that New Jersey must rely on the iGaming market to stay afloat. Online casino earnings continue to thrive, reaching new records every month. The totals will help if NYC casinos remove New York travelers from the Garden State. 

Atlantic City has two years to prepare for the incoming downstate casinos in New York. It’s unclear what brands will do to stay in the competition and how they will try to attract visitors. Will hotel rates go down, or will promotional packages ramp up?

No matter what happens, it will be a completely different market that players can use to explore a wide range of gaming options both online and in person. All eyes will be on New Jersey and New York as the new gaming industry unfolds. Will Atlantic City casinos be majorly affected by some shutting down? Only time will tell what will occur once the NY gaming market is fully operational.