Jim Allen, the Chairman of Hard Rock International, recently shared his thoughts on potential threats to Atlantic City at the East Coast Gaming Congress which was held in the city’s Boardwalk casino and resort. Allen believes that the upcoming introduction of full-scale casinos in downstate New York may have a substantial impact on the profitability of Atlantic City’s nine casinos.
The New Jersey Division of Gaming Enforcement reported a 5% decline in profits for Atlantic City’s casinos despite a strong revenue of over $3.3 billion. Allen believes that the less profitable casinos in the city are likely to be adversely affected by the new competition.
Three casinos reported a gross operating profit of more than $100 million in the year 2022 – Borgata, Hard Rock and Tropicana. Meanwhile, Ocean, Harrah’s and Caesar’s reported a profit of $96.2million, $89.4million and $60.4million respectively. The Golden Nugget and Resorts both reported a profit of $30.6million and $21million respectively, while Bally’s reported a net loss of $1.9million.
Allen concluded that the casinos on the lower-tier of the market are the most vulnerable and could potentially be forced to close. New York is in the process of reviewing applications for three downstate casino licenses, two of which are supposedly earmarked for Resorts World New York City and the Empire City Casino at Yonkers Raceway.
To counter the potential downturn, Atlantic City’s mayor Marty Small proposed a $2.7 billion project to convert Bader Field into a multi-purpose development. The plan is currently under review by New Jersey’s Department of Community Affairs.
Additionally, the Showboat, a former casino-turned-non-gaming hotel, is close to opening its Island Waterpark. The 103,000 square feet facility will include water rides, a surf simulator, a lazy river and other amenities. The Showboat has also opened the Lucky Snake Arcade – the largest of its kind on the East Coast – which includes an indoor go-kart track and more than 600 arcade games. A mini-golf course, rollerblading course and a 40-foot-tall rock climbing wall are also in the works.
Jim Allen, Chairman of Hard Rock International, recently spoke out on potential risks to Atlantic City’s nine casinos at the East Coast Gaming Congress taking place in the Boardwalk resort. According to the New Jersey Division of Gaming Enforcement, the casinos reported a 5% decline in profits last year despite a record revenue of $3.3 billion. Allen believes that the lower-tier casinos in the city are particularly vulnerable to the arrival of full-scale casinos in downstate New York.
On the other hand, Atlantic City is looking to diversify beyond its traditional gaming sector. Mayor Marty Small proposed a $2.7 billion project to convert Bader Field into a multi-purpose development, while the Showboat is close to opening its 103,000 square feet Island Waterpark with a range of attractions, including water rides, a surf simulator, and a lazy river. The Showboat has also opened the Lucky Snake Arcade – the largest of its kind on the East Coast – which includes an indoor go-kart track and more than 600 arcade games, along with a mini-golf course, rollerblading course, and a 40-foot-tall rock climbing wall.
Jim Allen, Chairman of Hard Rock International, recently raised concerns over potential threats to Atlantic City’s nine casinos at the East Coast Gaming Congress. According to the New Jersey Division of Gaming Enforcement, profits for the casinos declined by 5% last year despite a strong revenue of $3.3 billion. Allen believes that the lower-tier casinos in Atlantic City are particularly vulnerable to the imminent introduction of full-scale casinos in downstate New York.
In response, officials in Atlantic City are attempting to diversify the city away from its traditional gaming sector. Mayor Marty Small proposed a $2.7 billion project to turn Bader Field into a multi-purpose development, while the Showboat is close to opening its Island Waterpark with a variety of attractions, including water rides, a surf simulator, and a lazy river. The Showboat also opened the Lucky Snake Arcade – the largest on the East Coast – which includes an indoor go-kart track and more than 600 arcade games, along with a mini-golf course, rollerblading course, and a 40-foot-tall rock climbing wall.
