Atlantic City casinos are under threat from new competitors in New York and potentially within New Jersey, according to industry leaders speaking at the East Coast Gaming Congress. The seaside resort has seen in-person gambling revenues lag, with seven of nine casinos winning less from on-premises customers than before the COVID-19 pandemic.
Jim Allen, chairman of Hard Rock International, warned that if three casinos open in or near New York City, Atlantic City's in-person gambling revenues could fall by 20% to 30%. Hard Rock operates a casino in Atlantic City and is partnering with New York Mets owner Steve Cohen on a proposed $8 billion casino complex at Citi Field in Queens.
Tom Reeg, CEO of Caesars Entertainment, which owns three Atlantic City casinos, also acknowledged the challenge. His company is seeking a New York casino license with SL Green and Roc Nation in Times Square. Soo Kim, chairman of Bally's Corporation, noted that table games revenue from New York gamblers “will be harder to attract” once New York casinos open.
Jeff Gural, operator of the Meadowlands Racetrack in northern New Jersey, predicted that New Jersey voters will authorize a casino in the Meadowlands shortly after New York casinos open. He believes New Jersey gamblers will tire of paying bridge tolls and sitting in traffic to reach New York gambling halls. Gural has a deal with Hard Rock to build a casino at the Meadowlands, a proposal that stalled after voters rejected a 2016 referendum on expanding casino gambling beyond Atlantic City.
Atlantic City Mayor Marty Small said the city must work together to diversify its options and remain competitive. Mark Giannantonio, president of Resorts casino and the Casino Association of New Jersey, said Atlantic City has a “two-year window” to prepare for New York competition, noting that table games will be particularly impacted.
