Not solely New York casinos threaten Atlantic Metropolis. Developer predicts Meadowlands on line casino is coming

ATLANTIC CITY, N.J. — Atlantic Metropolis casinos are dealing with threats on a number of fronts from new opponents not simply in New York, however from inside their very own state.
That is not nice information for a seaside resort through which the amount of cash received from in-person gamblers continues to lag, with seven of the 9 casinos successful much less from on-premises clients than they did earlier than the COVID-19 pandemic hit.
On the East Coast Gaming Congress Thursday on the Onerous Rock on line casino, quite a few executives from a number of the main on line casino firms in America acknowledged the chance of three downstate New York on line casino licenses — and the danger they are going to current to Atlantic Metropolis.
And the operator of a racetrack in northern New Jersey, simply outdoors New York Metropolis, instructed The Related Press he believes New Jersey voters will authorize building of a on line casino within the Meadowlands shortly after New York casinos open and New Jersey gamblers tire of paying bridge tolls and sitting in visitors to get to playing halls in New York.
“Now greater than ever we all know there is a risk coming with New York Metropolis gaming coming,” Atlantic Metropolis Mayor Marty Small mentioned on the convention. “We perceive the risk. We need to proceed to work collectively to do issues proper to place Atlantic Metropolis into a first-rate place, irrespective of the place these casinos are, that we diversify our choices.”
Jim Allen, chairman of Onerous Rock Worldwide, is straddling each markets.
His firm operates a on line casino in Atlantic Metropolis that’s the second-most profitable out there. And Onerous Rock is partnering with New York Mets proprietor Steve Cohen on a proposed $8 billion on line casino complicated at Citi Subject within the metropolis’s Queens part.
If as many as three on line casino open in or near New York Metropolis, Allen mentioned, Atlantic Metropolis’s in-person playing revenues might fall by 20% to 30%.
“We’ve to be ready for that,” he instructed attendees on the convention.
Allen mentioned Atlantic Metropolis’s Onerous Rock will climate the storm of New York competitors. However he mentioned he doesn’t need to see any opponents within the metropolis shut, throwing 2,000 to three,000 folks out of labor in a repetition of a wave of on line casino closings in Atlantic Metropolis from 2014 to 2016 that noticed 5 casinos shut. Two have since reopened beneath new possession.
Tom Reeg. CEO of Caesars Leisure, which owns three of Atlantic Metropolis’s 9 casinos, additionally mentioned New York casinos will probably be a problem. His firm, too, is in search of a New York on line casino license with SL Inexperienced, and Roc Nation in Occasions Sq..
“We’re pursuing that license with fervor,” Reeg mentioned. “I share Jim’s concern about the place the (Atlantic Metropolis) market is headed as we head into New York.”
Soo Kim, chairman of Bally’s Company, which has a on line casino in Atlantic Metropolis, mentioned desk video games income from New York gamblers “will probably be more durable to draw” as soon as casinos open in New York Metropolis. “With casinos in New York, Pennsylvania and Delaware, there’s casinos all over the place.”
He mentioned New Jersey can depend on its sturdy web playing market to offset some anticipated losses.
Issues do not finish with New York.
Jeff Gural runs the Meadowlands Racetrack in East Rutherford, New Jersey, simply outdoors New York Metropolis, together with the Tioga Downs and Vernon Downs racetrack casinos in upstate New York.
He additionally has a cope with Onerous Rock to construct a on line casino on the Meadowlands Racetrack — a proposal that was placed on the again burner when New Jersey voters overwhelmingly rejected a referendum on increasing on line casino playing past Atlantic Metropolis in 2016.
“I am simply ready for New York to open,” Gural mentioned in an interview. “Individuals will say, ‘Why am I driving over the George Washington Bridge and paying an $18 toll and sitting in visitors to go gamble?’”
Gural mentioned the 2016 referendum failed largely as a result of it was written to allow a couple of on line casino in northern New Jersey with out specifying the place.
“Individuals do not desire a on line casino within the neighborhood,” Gural mentioned. “If we make it clear it is solely on the Meadowlands, widespread sense tells you there will probably be a on line casino within the Meadowlands.”
Gural mentioned that can occur in “quite a bit before 10 years.”
Mark Giannantonio, president of Atlantic Metropolis’s Resorts on line casino and of the On line casino Affiliation of New Jersey, mentioned throughout Wednesday’s opening day session of the conference that Atlantic Metropolis views New York casinos as a risk.
“New Jersey must be ready for this, to make Atlantic Metropolis extra enticing for folks to go to, and there is plenty of work to do,” he mentioned. “Desk video games clearly will probably be impacted.”
He mentioned Atlantic Metropolis has a “two-year window” to organize for New York competitors by cleansing itself up, enhancing its infrastructure, and assigning extra police to the Boardwalk and different areas so guests see a visual legislation enforcement presence. He additionally mentioned Atlantic Metropolis wants to resolve its downside with homelessness.
However Giannantonio mentioned Atlantic Metropolis can survive the appearance of recent competitors in an already cutthroat northeastern on line casino market.
“I am all the time going to depend on resort, leisure, retail and the expertise on the on line casino ground,” he mentioned. “I imagine in my coronary heart that Atlantic Metropolis, with some exhausting work, will probably be a chance. We’re excited in regards to the future.”
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Comply with Wayne Parry on X, previously Twitter, at https://twitter.com/WayneParryAC.