ATLANTIC CITY — Atlantic City was feeling the heat last weekend — and it wasn’t just because two major casinos lost air conditioning. On Sunday, three Pennsylvania casinos just across the Delaware River opened their table games, bringing even more competition for the struggling seaside gaming capital. "The monopoly that we enjoyed for a long, long time is over,"...
Clik here to view.
On Sunday, three Pennsylvania casinos just across the Delaware River opened their table games, bringing even more competition for the struggling seaside gaming capital.
"The monopoly that we enjoyed for a long, long time is over," said state Sen. Jim Whelan (D-Atlantic) the city’s former mayor.
Atlantic City has seen revenue plummet over the past four years, as slots and tables built a ring around New Jersey’s border, choking off business. Casinos dipped in and out of bankruptcy, and new projects lost funding or were abandoned.
To the north, Yonkers introduced gaming in 2006. To the west, Pennsylvania debuted slot machines, also in 2006, creating what one gaming analyst called a "double whammy." And this year, both Pennsylvania and Delaware allowed table games to open, giving gamblers that real casino feel.
Atlantic City casino revenue dropped from a peak of $5.16 billion in 2006 to $3.91 billion in 2009, according to the Casino Control Commission. Things are looking worse this year.
Parx Casino, a Pennsylvania casino about halfway between Trenton and Philadelphia that has 15,000 daily visitors, is one of three near the New Jersey border that added table games.
"They couldn’t wait," spokeswoman Carrie Nork Minelli said. "We know now that we have [table games,] they’re going to be coming to Parx, versus getting on the Expressway."
Competition from the surrounding states has drained more business from Atlantic City than any other factor — including the recession, according to analysts. They say Atlantic City failed to take steps to fight back.
"Atlantic City just hasn’t become the destination it could have if it had prepared itself for competition," said Matthew Jacob, a casino analyst for Majestic Research.
During its 1980s heyday, when charter buses brought in millions of visitors clutching free meal vouchers and tokens, Atlantic City casinos actually turned away customers, preferring to lure high rollers with complimentary overnight stays.
Gaming grew by trial and error, unburdened by competition, said Israel Posner, a hospitality expert at Stockton College.
Meanwhile, many casino operators neglected their properties, failing to keep them "fresh," said Grant Govertsen, principal and analyst with Union Gaming Group. Investors and global casino companies shunned the city or withdrew from projects.
Whelan is pushing to reduce the room minimum from 500 to 200 for new casinos, which he said would make it easier for companies to enter the market.
Atlantic City doesn’t need new casinos — it needs a new vision and strong leadership, said Cory Morowitz, chairman and managing member of Morowitz Gaming Advisors. "It’s about people stepping up to the forefront to change," he said.
By Lisa Fleisher and Leslie Kwoh/The Star-Ledger
Related coverage:
• Gov. Chris Christie to make sure N.J. sports authority stays afloat
• N.J. Sports Authority faces $30M budget gap despite cuts to operations, payroll
• N.J. Sports Authority seeks $30M state subsidy as losses mount
• N.J. Sports Authority audit is sought by lawmakers amid mounting debt
• Gov. Chris Christie plans review of N.J. sports, shows, gaming management
• Gov. Christie creates oversight panel for struggling N.J. casino, sports industries
• Sports Authority needs N.J. bailout funds to continue operations, state auditor says
• Editorial: New Jersey Sports and Exposition Authority's time has passed. Let's kill it.