Atlantic City May Suffer More Casino Closures By 2020

Atlantic City May Suffer More Casino Closures By 2020In 2014, Atlantic City saw four of its casinos shut, including the Atlantic Club (Jan), Showboat (Aug), Revel (Sept), and Trump Plaza (Sept). This year, New Jersey’s remaining eight casinos have benefited from the reduced competition, with adjusted revenues, not including the now defunct casinos, higher by 5.3% year-over-year.
While this may seem rather encouraging, Moody’s Investors Service believes that the casinos will not be able to enjoy their consolidated position for much longer, with the credit rating company ominously predicting that increased competition from neighboring states will heap extra pressure on AC’s remaining casinos, forcing some to go out of business. The competition mentioned revolves around eight new casinos costing a total of $5 billion which are expected to open over the next three years across the states of Maryland, Massachusetts, New York and Pennsylvania.
Adding to Atlantic City’s misfortunes is the fact that as the number of alternative gambling venues increase, gamblers are unlikely to go out of their ways to reach AC casinos, which are located far from the regions major population centers. As Moody’s analyst Peter Trombetta explains; “It’s very unlikely someone is going to drive past one casino to go to another casino if they have similar offerings.”
While Moody’s did not specify which of Atlantic City’s casinos are likely to fail over this period, the three which spring to mind are those which are already in Chapter 11 bankruptcy, and so are obviously most at risk of going belly-up. These include Trump Taj Mahal, Caesars and Bally’s, and as a Moody’s statement explained:
“As the number of casinos shrinks, some of the remaining casinos have seen revenues increase. But we expect increased competition will keep the heat on incumbents, and that number of casinos in Atlantic City will likely continue to shrink. We expect more casino closures to occur in Atlantic City as some struggle to grow their business and face additional competition.”


Poker News
Japan Introduces Responsible Gambling Bill
28 May 2018
Japan’s bicameral legislature, known as The National Diet, consists of an upper House of Councillors and a lower House of Representatives, with the latter having started discussing the Integrated Resorts Implementation Bill last week. Being debated is the regulatory framework required in order to set up an efficient and well functioning casino market in the
Ohio Casino Revenue Up 1% to $71.8m in April
17 May 2018
The Ohio Casino Control Commission has released its gambling results for April, with the state’s four casinos collecting $71.8 million last month, up by almost 1% compared to the prior year. Meanwhile, the Buckeye State’s seven racinos fared considerably better, with their revenue rising by 8% to $89.7 million from their slots and video gaming
NJ Generates Record iGaming Revenues in February
15 May 2018
In April, New Jersey’s online gambling market saw its revenue rise by 10.6% to $23 million versus the same month in 2017, with the amount posted second only to the record $25.6 million collected in March 2018. As a result, the Garden State has now generated $92.5 million over the first four months of this
Virginia Poised For Historical Gambling Expansion
11 May 2018
Virginia is among the country’s more conservative states when it comes to gambling, and for many decades has resisted the allure and revenues that the industry might bring. In the 1990s, for instance, its legislature turned down a push for riverboat gambling, and the following decade Internet gambling cafes were outlawed. For the past five