New AC casinos could hurt the existing ones
The opening of more gambling facilities in Atlantic City could jeopardise the activity of the ones who are currently open.
US.- Atlantic City’s economic situation has severely changed through the last few years, with an oversaturated gaming market that forced four casinos to close their doors. Nevertheless, it is expected that at least two facilities will reopen next year, and the recently stabilised industry in New Jersey’s gaming hub could be jeopardised once again.
Colin Mansfield, director and lead analyst at Fitch Ratings, said: “There is a concern with the increased supply that will be created by the opening of the Hard Rock. The market has shown signs of stabilization after the closures, the remaining operators are seeing increased profits and more supply will take away from the existing properties.”
Moreover, other analysts like Standard & Poor’s Global Ratings said that the ongoing expansion of the casino industry in the region could lead to future closings. “Whilst there could be short-term economic and budgetary gains, they are unlikely to improve state credit quality. With declining tribal gaming revenues in Connecticut and the erosion of the Atlantic City gaming monopoly in New Jersey, long-term risks from commercial casino gaming are an ongoing credit risk.”
“As states in the region continue their gambling expansion, coupled with the region’s weak demographic trends, the likelihood that these revenues will meaningfully supplement state revenues over the long term diminishes and will have long-term credit implications.”
The city’s seven casinos increased gambling revenue by 7.9 percent in September when compared to the same period in 2016. Total casino gambling revenue, including online gambling, totaled approximately US$235 million in September, up from the US$128 million raked in September 2016, when Atlantic City counted with the now closed Trump Taj Mahal.
