Will New York casinos hurt Atlantic City? What NJ needs to know

🎰 New York approves three new casinos, raising fears they could siphon off Atlantic City gamblers from NYC and North Jersey.

🏖️ Experts say Atlantic City’s beach, boardwalk and destination appeal give it long-term staying power despite short-term hits.

🚬 A proposed smoking ban and possible North Jersey casinos add fresh pressure to an already competitive landscape.

ATLANTIC CITY — New York State recently granted licenses to three casinos---Bally’s in the Bronx, Hard Rock Metropolitan Park near Citi Field, and Resorts World near the Aqueduct Racetrack in Queens.

The $64 million question is, “Will this hurt Atlantic City casinos and their customer base?”

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Many of Atlantic City’s current visitors come from the New York City area, so this will hurt AC in the short run as people want to check out what the new places have to offer, says Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism.

“But in the long run, Atlantic City has a lot of unique properties that New York doesn’t have, so they can be successful in the long run after everyone sees the initial casinos and then hopefully chooses to return to Atlantic City,” Bokunewicz said.

New York casinos could hit Atlantic City in the short term

Atlantic City properties have also been planning for the possibility that New York would get casinos, so they’ve been implementing strategies to try and separate themselves from New York in several ways, Bokunewicz said. Plus, with two of the New York casinos not scheduled to open until 2030, AC has time to get things in order, she added.

One way Atlantic City separates itself from New York is with the city’s iconic beach and boardwalk. “Atlantic City has a lot of history, and it’s developed a customer base that is loyal to the city through loyalty points, and they like to return to their favorite casino in a beautiful destination with a beach and boardwalk,” she said.

Why Atlantic City still stands out as a destination

Another way Atlantic City has a leg up over New York is that AC is more of a destination, Bokunewicz said.

The New York casinos, although they will have all the amenities similar to those in Atlantic City, are located in separate geographic locations. In contrast, Atlantic City has nine properties in one small geographic area and a lot of other entertainment options, so it’s a destination, she said.

Destination-style gaming markets are very popular, and the two top gaming markets with destination styles in the U.S. are Las Vegas and Atlantic City, Bokunewicz pointed out.

Millions poured into renovations and new attractions

Last year, Atlantic City properties spent more than $200 million in renovations to keep customers coming back.

They added new attractions, upgraded hotel rooms, dining options, spas, and added new celebrity-chef restaurants, so they have been reinvesting a lot in their properties, she said.

There’s also been a lot of investment in Atlantic City in non-gaming attractions that will help solidify AC’s position as a destination. Bokunewicz said.

For example, the Orange Loop, which is a destination within a destination, has a lot of development in unique restaurants, small hotels, and housing.

“It’s really become an area that entrepreneurs have invested in the last couple of years, and I think that’s an example of some new developments to the city to provide new attractions,” she said.

Also, the Island Water Park at Showboat, Steel Pier invested in a new roller coaster, the aquarium reopened in AC, the city is improving the roads and the boardwalk, so there’s a lot of development in the city outside of the casinos.

Let’s not forget about events. Bokunewicz said that with increased concerts, boxing matches, and festivals, it gives people a reason to travel to Atlantic City from New York.
“Having that outside of your home is an attraction for people who want to get away for the weekend,” she said.

Smoking ban and North Jersey casinos raise new concerns

Despite some AC casinos closing in recent years, there has been an increase in gross gaming revenue even in the off-season, after summer. This year, gross gaming revenue was up in the brick-and-mortar casinos in Atlantic City.

“So, I think it is still a popular destination, and I think it has a lot of potential for the future,” Bokunewicz said.

However, there are still concerns. Will the proposed smoking ban in Atlantic City casinos be a problem if New York City casinos allow it?

Bokunewicz said Atlantic City operators are concerned not only about a potential smoking ban, but also about its timing.

“If you look to what happened in the past when Pennsylvania was opening casinos, around that same time, there was a smoking ban was implemented, and revenue did suffer. So they ended up reversing the ban and allowing smoking on 25% of the casino floor,” Bokunewicz said.

Atlantic City is justifiably concerned about what could happen if a smoking ban is implemented at this time, when New York is getting ready to open casinos, she added.

There’s also been a push to open casinos in North Jersey as a way for the state to increase its tax revenue if there are gross gaming revenue losses because of the New York casinos. This would, however, be more competition for the Atlantic City casinos, hurting profits, and having to increase their marketing expenditures, she said.

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