State Government To Take Over Some Control Of Struggling Atlantic City Area

July 21, 2010-  By Bryan Cross

It is no secret that the Country’s second-largest gambling market is struggling due to the economy and new competition arising on the east coast.  As a result New Jersey Governor Chris Christie is scheduled to announce a proposal that would give control of Atlantic City over to the government and state officials.

From the proposed control, officials would create plans in in a detailed “block-by-block” analysis to come up with ideas on how to bring back the struggling area.  As such, the local government right down by the area would not retain any sort of management of the area.

“In Atlantic City, you have to revitalize the Boardwalk and the marina district and deal with the night life,” remarked a city official. “Turn it back into a brand that attracts people.”

Back in February, the governor appointed a committee to research the state’s gambling industry problem, and to try and figure out ways and come up with solutions and ideas on how to fix the struggling gaming industry.

The new casinos and competition popping up on the east coast is very damaging to Atlantic City.  Casinos in the states of Maryland,  Delaware and Pennsylvania have emerged in the industry by opening new casinos and bringing in table games.  Specifically, Pennsylvania is currently in the process of opening their table games to the public, with the goal to take some of the tourism from Atlantic City as well as keeping resident gamblers within the state borders.

In total, revenue from gambling has gone down by 20 percent since 2007.  The revenue has decreased from $5 billion to $4 billion.

Of the 11 casinos in the Atlantic City area, there are six of them that have declared bankruptcy or restructuring their debt thorough a complex process.  There were plans to open a 12th casino, that is already under construction, however there is not sufficient funding to support the remainder of the project.

“This is not going to be popular with the vested interests,” the anonymous advisor. “But it will be with taxpayers.”

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