Are New Atlantic City Casinos A Good Thing?
Atlantic City will be getting two new casinos during the month of June 2018. However, some industry experts have reservations about whether the openings are actually a positive thing. Both locations are not new sites, but instead revamped versions of land-based casinos that failed to compete with other venues.
Hard Rock Hotel and Casino will be opened in June and is a renovation of the Trump Taj Mahal, which was bought by Hard Rock International during 2017. Ocean Resort Casino is a major overhaul of the location previously inhabited by Revel Casino Hotel. Revel is infamous for being one of the biggest failures in Atlantic City. The casino opened its doors in 2012 and shut down after only two years.
The tourist destination of Atlantic City had been going through some rough times prior to 2017. Revenue and profits experienced a steep decline over the course of a few years, and a handful of Atlantic City casinos had to close. However, in 2017 the casinos in operation reported a total profit of $723.3 million. This is about a 24-percent increase over the previous year. The increase was mostly seen during the last quarter of 2017 and generated a more optimistic outlook for the city.
A downside of such an impressive profit increase is fewer casinos, according to those in the industry. Since Atlantic City only had seven casinos as opposed to twelve in 2017, many believe it caused an inflated combined profit report. The addition of two new casinos might strain the overall industry in Atlantic City, which would put another damper on the progress that gambling tycoons hope for.
Both the Hard Rock Casino and the Ocean Resort Casino plan to officially open on the 28th of June. If the planned dates turn out to be accurate, it becomes quite clear that the two venues are serious about competing with each other. Casinos that are currently open in Atlantic City should be concerned as well, considering that the two newcomers are bound to push hard for players. This scenario does not even factor in competition from other states like Pennsylvania and Connecticut.
Atlantic City in itself has always been an interesting example of success and failure. Instead of other gambling destinations which happened organically, Atlantic City was specifically designed to be a resort town. The strategy worked for quite some time and Atlantic City was undoubtedly the biggest tourist town on the East Coast. However, it lost much of its appeal when casinos started popping up in neighboring states.
Hard Rock will be kicking things off in a big way with 300 nights of live entertainment and 60 acts in the lineup. Ocean Resort Casino has partnered with Topgolf to create the largest Swing Suite in the world. However, neither new venue is a guaranteed success.