Atlantic City has always been a tourist city known for its gambling venues, stunning beaches, and boardwalk. This New Jersey-located city is also a resort city and one of the visited Atlantic County cities. Back in 2010, Atlantic City had a great population of almost 40,000 residents while today’s number is significantly bigger. Needless to say, Atlantic City is best known for its entertainment and casino industry which spans back to 1976 when the state of New Jersey legalized casino gaming.
The very first Atlantic City-based gambling venue opened its doors in 1978. This move came as the major effort by the state’s officials to revitalize this area. The state’s voters passed a referendum that approved casino gaming in Atlantic City. Once the referendum was passed, the Chalfonte-Haddon Hall Hotel owners jumped on the new opportunity, converted the firm into the Resorts International and opened its casino on the 26th of May 1978.
A series of other casinos were constructed soon later along the Atlantic City Boardwalk and later in its marina area. However, the introduction of gambling in the area was not enough to eliminate the city’s other issues which made Atlantic City less popular than the gambling’s capital Las Vegas. Back in the 1980s, the city was revitalized thanks boxing matches by Mike Tyson which took place here. Today, Atlantic City is one of the most popular gambling resorts in the United States.
Modern Day Atlantic City
When it comes to Atlantic City today, one of the latest state-powered investigations has shown that the casino market in this area is doubtlessly oversaturated. The same investigation on the city’s nine-casino industry has also shown that several issues are plaguing the city which are hampering local casino operators as they invest in their casino venues.
The investigation was fully commissioned by the city’s Working Group of New Jersey Governor, Mr. Murphy and the main goal was to aid the big debate as to whether the state of New Jersey should institute a certain cap related to the number of casino licenses for the city’s Boardwalk area. Even though generated gross gaming revenues in the city increased by a massive 22.9% to reach around $293 million in October, seven of the city’s nine casinos have enjoyed rather modest rises.
The same investigation has shown that the biggest improvement in generated gross gaming revenues was down to the success at the Hard Rock Hotel and Casino AC and the Ocean Casino Resort. Both of these casino resorts have entered the market in 2018 and it seems that they have been taking customers from their older rivals rather than attracting new gamblers.
Hard Rock Hotel and Casino and Ocean Casino Resort
The investigation conducted by the Working Group of the state’s Governor focuses on these two venues. The investigation’s evaluation reads that the second quarter of the year marked a great year of operation for the new gambling venues. In this time, the city’s gross gaming revenues have reached $280 million which is the average gross gaming revenue of a single casino in the area for the four-quarter period.
However, despite significantly rising numbers related to gross gaming revenues, the study has also suggested that the two new casinos lack a business scheme, hence they are falling when it comes to profitability. This, when combined with oversaturation issues, lead to the operators not being able to invest more in their venues and this way keep their regular customers and bring new visitors. The study also suggests that the situation will get worse following year thanks to the growing competition by the anticipated opening of the currently-constructed Live Hotel and Casino Philadelphia.
