Recently, a report by a Rutgers University’s professor hit the shore. And it sent a shock wave across the gambling industry on November 17th. In fact, in a certain way, it predicts the imminent Doomsday of Atlantic City. And one that a market saturation could cause if no one acts fast.
But here it’s important to mention that the said report was in fact commission by NJ’s Gov. Phil Murphy. Plus, it was also delivered at a time where governing bodies are considering capping the number of licenses to avoid market cannibalization.
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All and all, the reports highlight concerns previously raised. And the first time it was by counsel man Johnson. And the second time by no other than the Golden Nugget’s owner, Tillman Fertita who believe that Atlantic City is not a 9 casinos city. But let’s look at some of the key points the report highlights.
The Showboat to get a gambling license?
If you live in Atlantic City, like many, you probably wonder if the showboat will get its gambling license. Well, officially, this casino was never going to be a gambling establishment. However, some have entertained the idea given the high GGR (gross gambling revenue) operators produce nowadays. With that said, the report has clearly shown that.
In Q2 of this year “Atlantic City’s gaming revenues have grown by about $280 million”. But according to sources, this figure is more or less equivalent to the average revenue of 1 casino for 1 quarter. So, it doesn’t necessarily mean that new gambling money is reaching Atlantic City. Nor does it mean that the city can support at 10th casino and its upkeep either. So the Show Boat might have to wait a bit.
Slot revenue dipped
Now while the full effect of the legalization of gambling in Pennsylvania is yet to be understood in New Jersey. Rutgers University’s report did highlight a dip in the GGR figures from $336 Million to $283.6 Million. And this figure drop was noticed when Ocean Resort and Hard Rock brought around 2000 new slots in town. But the figure also coincided with the launch of many online casinos.
So this isn’t that problematic. However, it’s worth keeping in mind that the Cornish Companies is opening soon in Philadelphia. And it too will bring around 2,000 new machines. So maybe the figures will dip again given its proximity to New Jersey. Well… Time will tell. And the good news is that Doomsday isn’t here yet. And by the look of things, experts are keeping a close eye on the GGR curve to act before it’s too late.