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 26^th 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.

After being sold to the Virgin Group owner, Sir Richard Benson back in February 2018, the Hard Rock Hotel and Casino Las Vegas officials have stated that the facility will close its doors to the public during the process of rebranding which is set to begin this February. The facility will be rebranded as Virgin Hotels Las Vegas which will probably open its doors to visitors by the beginning of 2021. However, the reconstruction process may be completed even sooner.

As announced back in the spring of 2018, the twenty-four-year-old facility Hard Rock Hotel and Casino was sold to Virgin Hotels. The Virgin Hotels company was founded by the Virgin Group owner and founder, Sir Richard Benson back in October 2010. The story starts when Virgin Hotels purchased the Old Dearborn Bank Building located in Chicago for around $14 million from the Urban Street Group LLC.

Back in January of 2915, the very first Virgin Hotels-owned and operated hotel facility opened its doors. Four years later in February 2014, the company opened its second facility located in San Francisco very close to Yerba Buena Gardens. Since its beginnings, one of the major Virgin Hotels’ business plans was to acquire different properties across North American during the downturn. However, this business plan was stopped by banks which decided to hold these kinds of properties and real-estates until the real-estate market rebounds.

Purchasing Hard Rock Hotel and Casino Las Vegas

However, this did not stop Virgin Hotels from expanding across many other locations in the states. The company plans on building hotels in Nashville and New York. When it comes to its New York-located facility, the site is located near Broadway while its Nashville property is situated at One Music Row. The Virgin Hotels-owned, Dallas hotel is located near Downtown Dallas while the latest facility operated by the company opened its doors in San Francisco in February of 2019.

Moreover, the United Kingdom-based Virgin Group also owns other properties including casinos and luxury resorts among others. The company aims to have facilities in at least twenty locations by the end of 2025 while it hopes to have nine hotels across the United States by the end of 2020. When it comes to the purchase of the Hard Rock Hotel and Casino, it is planned to be both rebranded and renovated. The property is located on the corner of Paradise and Harmon Road.

Some of the main facility’s features include a massive hotel tower, casino floor, beach alongside a swimming pool, six restaurants, several cocktail lounges, a spa, poker room, retail stores, a massive music venue and much more. As reported recently, the facility earns more than thirty percent of its gross revenues from its gaming facilities which Virgin Hotels plans to renovate as well.

The most recent plans for the Las Vegas-based Hard Rock Hotel and Casino also include renovations of other areas including hotel rooms and restaurants. As it was reported, the renovations will probably take place this February. The owner also plans to temporarily close the facility for at least four months and to re-open sometime after the presidential campaign 2020.

The Official Statement by the Virgin Hotels’ CEO

Commenting on the news about temporarily closure of Hard Rock Hotel and Casino for rebranding, the Virgin Hotels’ CEO Richard Bosworth stated that the facility should re-open as Virgin Hotels Las Vegas in January of 2021 even though it may be ready sooner. He also stated that the renovation plans include investing around $200 in the facility’s nightlife, gaming, and dining areas.