Hard Rock Boss Paints Grim Picture About Future of Atlantic City
In January last year, New York launched its mobile sports betting market. Immediately the state set new records for betting handle, surpassing markets that had been operating for years. Then, the state sought to expand further the gambling options for residents and visitors, introducing a plan for three downstate casinos.
Announced a few months ago, the ambitious plan for new casinos in downstate New York is expected to attract significant investment and once operational, bring economic stimulus on a local and state level. But while establishing new casino locations may bring benefits for New York, this may not be the case for nearby New Jersey.
Casinos in New York May Impact Atlantic City
Earlier this week, Jim Allen, the chairman of the global casino, entertainment and hospitality company Hard Rock, participated in the East Coast Gaming Congress. During the congress, he painted a grim picture of the future of the gambling vertical in New Jersey, in light of the proposed construction of three new casinos in New York.
“I can tell you this: If we lose 20 to 30% of our business, it is not going to be a great day for Atlantic City.“
Jim Allen, chairman of Hard Rock
Allen was interviewed by the Associated Press and explained that recent revenue numbers create a deceiving view of the gambling sector in Atlantic City. He said that this is because internet gaming, as well as sports betting revenue is included.
According to Allen, land-based gambling “has been going backwards or flat, depending on the property, since last May” and this is not something that iGaming or betting can offset. Hard Rock’s chairman spoke about the impact of New York casinos explaining that losing 20% or 30% of the business would create difficulties for the gambling operators in Atlantic City.
“Atlantic City receives 20, 30-plus percent of its revenue from upstate New Jersey and downstate New York, and there’s no doubt it is going to have an impact on this particular market,“
Focusing on revenue, Allen said that approximately 20% to 30% of the revenue in Atlantic City is generated from downstate New York and upstate New Jersey. He predicted that this specific market is likely to be impacted by the plans for three new casinos in New York.
Currently, Allen’s company owns a casino in Atlantic City which is among the top-performing gambling venues on the market. Additionally, Hard Rock is one of the gaming companies that is a part of the bidding process for the proposed New York casinos.