Atlantic City Casinos Struggling With A Recent Increase In Competition

July 6, 2010-  By Bryan Cross

Casinos on the East Coast over the last several months have planned, implemented, and now possess table games throughout their casinos.  States like Pennsylvania and Delaware, which had never previously had table games, have taken steps to increase their gambling revenue in the states.  As such, the staple for gambling on the Eastern seaboard, Atlantic City, has had to deal with the increase in competition in an industry that is struggling and saturated.

“It’s an extremely competitive marketplace right now. And everybody’s got to get out there just to protect their own share,” said Andrew Gentile, who is a Delaware casino general manager. “Slots players typically are female, 45 and older. The poker player is predominantly male, and a lot of retirees. You’re also seeing a lot of that younger generation that grew up in the last 10 years watching the World Series of Poker on ESPN.”

Ernie Goss, who is a Economics professor at Creighton University says that it is not hard to figure out why states are choosing to try and increase their gaming industry.

“It’s a way of getting tax revenues at a very fast clip,” he said. “So there’s a real, real incentive on the side of the state, on the side of the city to approve casinos.”

However, Goss stated that the problem with the increase in the type of games offered in casinos, also breeds an increased amount of competition, for which could be too much for some to survive.

“To some degree, you’re going to cannibalize casinos in other states,” he added “The industry is going to get much more competitive, particularly in the northeast portion of the U.S.”

The only casino that has been good for Atlantic City over the last year has been Borgata, which recently received a five-year extension from the Gaming commission to continue their operations despite half the casino being without an owner.

“It’s the fine dining we have at Borgata, it’s the entertainment program, the spa — it’s those other amenities that I think turned Las Vegas into the gambling mecca,” he says. “I think you’re slowly seeing non-gaming revenue slowly increase here in Atlantic City.”

New Jersey Casinos are also rejecting a notion that would set up websites for each for online gambling.  They say that Online Casinos In New Jersey would not be the profit-wheeling idea that some believe.

Share
Tags: , , , , , , , ,

One Response to “Atlantic City Casinos Struggling With A Recent Increase In Competition”
  1. Terry Gallagher Says:

    Bryan, what everyone forgets is Atlantic City went through a similar scenario when Foxwoods and Mohegan Sun opened in Connecticut. People were writing AC’s epitaph at the time and yet, after a brief dip, we rebounded. We will do so again for the same reasons – while states can come up with casinos, there is literally no destination on the East Coast like Atlantic City that combines a choice of MULTIPLE casinos (a preference for most gamblers), abundant dining and top-notch entertainment choices (Lady Gaga — the biggest name in showbiz right now performed here on July 4) PLUS a beautiful beach and the Atlantic Ocean. We literally have something for everyone. Not one of the destination’s competitors can claim this, nor will they in the forseeable future. Non-gaming revenues are going to continue to increase and make AC a more fully realized resort experience — more than just a bunch of casinos. Unfortunately we happen to be in a down global economy right now (see the gaming revenue hits that places like Vegas, Reno, etc have taken too) and this has made things appear worse but occupancy levels, non-gaming spending, etc are all moving ni the right direction for Atlantic City.

=
Best USA Gambling Sites
Top USA Casinos
Visit Casino
Top USA Sportsbooks
Bookmaker Sportsbook
DSI Sportsbook
Top USA Poker Rooms