Whoever asks players about the most popular travel destinations in the USA will get two answers here: Las Vegas and Atlantic City. In fact, “Sin City” and “AC” clearly dominate the gambling industry in the USA, although a clear imbalance has developed here in recent years. While in Las Vegas visitors are still pouring into the city, this has changed in Atlantic City. This is not the first time, however, and the former players’ paradise believes that a turnaround can succeed. There are already investors, but profits cannot yet be reported.
Crisis? Nothing new in Atlantic City!
Who is concerned with the history of Atlantic City will soon find out that the word crisis is by no means a new term here. Again and again the city had to go through enormously hard times, but so far it has actually been able to assert itself more or less. As early as 2006, the financial crisis also led to horrendous problems in Atlantic City. Numerous properties and real estates lost in value, the visitors stayed away and many casinos had to close their doors. 2014 saw the last major slump, which lasted for two years until 2016. A total of five casinos closed their doors in the two years, with unemployment rising rapidly. The problem then was the legalization of gambling in New Jersey’s neighboring states, so that the “gamblers” from Maryland, New York or Pennsylvania suddenly no longer had any reason to travel to “AC”.
2016 The unemployment rate was finally more than 20 percent, at the same time sales fell by as much as 50 percent compared to 2006. Instead of 5.2 billion, only 2.7 billion euros were suddenly turned over, and at the same time 38,000 Atlantic City residents fell below the poverty line. Curiously, a certain resemblance to 2016 is also recognizable today, because only a few months ago the Supreme Court in the USA lifted the ban on sports betting at federal level. This means that all states can now decide for themselves whether sports betting is legal for them. This should not make the situation any easier for Atlantic City. However: In comparison to 2016 the casinos do not flee and close. Instead straight only new investors were found, who are to provide now again for full roads and above all full cashes.
Who secures itself the new customers
In the detail the investors for the Ocean Resort Casino and the hard skirt Casino were found, both before short time again were opened. That is altogether naturally an enormously good message, might alone however not bring the necessary upswing to Atlantic city. Instead it is up-to-date also in such a way that the city can be pleased about good conversions, the profits however in the comparison to the third quarter from the previous year around whole 15 per cent decreased. How can that be? This is justified in a report by New Jersey Division of Gaming Enforcement by the fact that new competitors have entered the city and companies have to spend more money on advertising. Logically, this has a negative impact on profits. At the same time, however, this realization naturally also means that after these investments corresponding increases should be recorded.
To accelerate the whole thing, the various gambling companies have long since resumed the newly inflamed competition in the city. Horrendous sums were invested into the advertisement, at the same time professional support in the form of marketing experts was flown in. Not only the new “settlers” but also those who have been active in the city for some time can profit from this targeted upswing. One positive example is the Golden Nugget Casino, which compared to the previous year at this point in time can boast a plus of 6.6 percent in profit.
Gambling Commission wants to encourage
In principle, however, the report of the responsible gambling commission has revealed that the new casinos are a little better positioned thanks to the fresh investments. Nevertheless, the Commission does not tire of stressing how important the investments are for all parties involved in Atlantic City. “The declines are due to the more difficult competitive conditions in Atlantic City. On the positive side, however, there are over 6,300 jobs, including just under 5,400 full-time jobs, created by the casino industry within a year,” said James Plousis, Chairman of the Gaming Commission. At the same time he explained that besides a conversion increase of whole 17 per cent in the comparison to 2017 is to be registered.
Not under the table to speak can Plousis however that there are winners and losers with the reorientation of the city. Definitely one of the losers is for example the Casino Bogota, which had to accept a minus of more than 22 per cent in the comparison to 2017. The Tropicana Casino has earned a whole 30 million US dollars less, so that here, too, one cannot really speak of a successful year 2018.
Even if it hurts: The role model is the Las Vegas
The city would like to tackle the problem, however, not only at the gaming operations, but also at the supporting program. That means in detail that also here in the future on more is to be set, than only the fun at the play tables. Exactly this model is currently exemplified by the city of Las Vegas, which seems to have been sublime for years against all crises and break-ins. In fact, Vegas is doing so well that the construction of another airport is currently being discussed in order to handle the huge masses of tourists. A few years ago “AC” thought it was on a par with “Sin City”, but now it has to accept a clear backlog. So even if it hurts for Atlantic City to say: Las Vegas is currently the big role model.
Possibly Atlantic City can also orientate itself successfully on the good example from Las Vegas, if similarly big shows and similarly much entertainment are offered. So far, however, it might also be difficult to get artists interested in performing in Atlantic City. AC” can’t keep up with the millions of dollars Lady Gaga and Co. earn on the strip yet again.
Online Casinos increase the pressure
Sicher wird die Situation für die Stadt wird nicht einfacher durch dass auch in den USA mittlerweile ein breiter Markt für die Online Casinos und Online Buchmacher gefunden hat hat. The players profit here from a certain comfort and can their Nervenkitzel directly at the domestic computer experience. Thus a journey becomes superfluous to Atlantic city, particularly since on-line offerers can convince also in the United States with a larger selection and different bonus actions. However: Online gambling is still far from being possible in all federal states – so a small glimmer of hope for “AC” can also be discovered here.