The Gambing expectation in Atlantic City
The casinos in the US states of New Jersey and Nevada have suffered greatly since the financial crisis in 2008, with revenues plummeting drastically. Since then, many of the famous land-based casinos have had to close their doors. Atlantic City lost many of its casinos and now there are only eight establishments open, although there is the expectation that two more will be reopened in the future.
Since the situation has stabilized in recent years, operators are once again optimistic about their prospects with revenues expected to grow in 2018. Resorts Casino Hotel president Mark Giannantonio estimates that the Hard Rock Hotel and Casino Atlantic City (formerly the Taj Mahal) and the new Revel Casino will once again attract many players to the city. The benefits of reopening the two casinos outweigh the potential short-term negative effect they could have on the other casinos in the city. The operator is optimistic that sales will increase over time, as the new competition could make the city more attractive to players again since it would offer more choice.
Renovations in the millions
The casinos are doing a lot to make themselves more attractive to gamblers by investing millions of dollars in renovations. Hard Rock is spending an additional $400 million on the renovation and remodelling of the Taj Mahal, acquired by the Group, to be opened as the new Hard Rock Hotel and Casino Atlantic City. The Revel Casino was purchased by builder Bruce Deifik of Colorado and is expected to spend $200 million on refurbishment work there.
Whether and how the reopenings and refurbishments of the two casino hotels will have the desired effect on casinos in Atlantic City remains to be seen.