Last Monday, New Jersey’s Division of Gaming Enforcement (DGE) released the full 2018 earnings report for Atlantic City’s nine casinos. Which of course didn’t include the Ocean Resort nor did it include Hard Rock since the report highlighted figures from the previous year. And both properties were not under the current management. Which means that the slow growth rate is perhaps not as alarming as it seems. Yet, some cannot help to wonder how NJ will react to the slow growth shown in 2017 to 2018 which only shows that the market has the potential to become saturated.
The solution to avoid market saturation
Let’s be frank since the DGE report landed in the media it sure created some concerns among operators who’ve invested millions in upgrading their casinos. But it’s just too early to panic. Atlantic City already has a solution to prevent market saturation. Indeed, operators are creating new products and verticals as soon as the legislation change. And let’s not forget to mention that AC is also investing in the future by banking on eSports and data centre.
Yet even if the casinos and the city are becoming more appealing. It’s still a difficult place to reach. And perhaps Senate President Sweeney’s proposal for Port Authority to take over Atlantic City Airport traffic until it expands is one worth considering. After all, today’s AC is very different than the one the DGE reported on last Monday. And it’s worth shouting about it to bring more traffic in.
2019 a record-breaking year
Now that we’re well into 2019, it’s time to start looking ahead. Indeed, this year continues to break revenue and profit records month after month. At the same time, the online gaming industry, including sports betting, is expanding daily. In other words, 2019 might show a more stable report at the end of the year. But in terms of profits, well, it might take a little longer to see a lot of that.
After all, the past renovations were expensive. And are of course long term investment that may only affect the figures slightly over the years. And yet contribute towards making a positive graph curve at the end of the day. So, in other words, AC is once again becoming a gaming and resort destination. With millions of dollars pouring into the city, it’s anyone’s guess as to how this year is going to end. So don’t panic.