For more than a year, Atlantic City has experienced a huge surge in its casino gambling industry. The legalization of sports betting has brought new life to this city. Unfortunately, new reports indicate that Atlantic City’s gaming revenue dropped in this year’s second quarter.
It’s surprising, as earnings from the gambling industry have increased here for most of the year. Now is the perfect time to look at how this city’s gambling industry grew so much, and how much revenue fell in the second quarter of 2019. Let’s get started!
Atlantic City Becomes One of the Top Gambling Hubs in the US
Decades ago, Atlantic City was thought of as one of the hottest gambling destinations in the world. Many top casinos operated here, bringing the state of New Jersey thousands of dollars in additional revenue every year. Over time, this city began to decline.
Under the Indian Gaming Regulatory Act of 1988, Native American Tribes can legally operate casinos on sovereign land. Starting in the 90s, tribes began opening casinos around the country, including New York, Pennsylvania, and Delaware. This led to fewer people visiting the casinos in Atlantic City.
With tourism down, casinos in Atlantic City began to decline. When the Great Recession hit in 2007, Atlantic City was already struggling to stay afloat. The recession crippled the gambling industry, leading many casinos here to permanently close their doors.
Fortunately, things began to change in recent years. The economy has improved, and several major casino companies have opened gaming venues in Atlantic City. The state’s legalization of sports betting also helped to drive in gamblers from other states.
Today, Atlantic City is thought of as one of the hottest gambling hubs in the US. For months, many casinos in this city have managed to bring in huge amounts of money. Interestingly, Atlantic City’s gaming revenue has dropped over the past three months.
Atlantic City’s Gaming Revenue is Now Dropping
As we just mentioned, this city has experienced a huge surge in gambling revenue. Things seem to have taken a slight turn in the year’s second quarter. According to the Press of Atlantic City, casino revenue in this city is beginning to drop.
Between the months of April to June, state-wide gambling revenue here dropped by 6.8% compared to the same time period last year. Casinos here brought in $159.3 million during the year’s second quarter, $11.5 million less than 2018’s second quarter.
Borgata was the only casino in this city to see its revenue increase last quarter. Gambling earnings here rose by 4.7% compared to the same period in 2018.
James Plousis, Chairman of the New Jersey Casino Control Commission, maintains that net revenue is still increasing this year, despite the gaming revenue drop. Speaking to the media, Plousis maintains that the future of Atlantic City’s gaming industry is still strong.
“Results from individual casinos show the market was still adjusting to the new level of competition through the second quarter,” he said. “Next quarter will provide an opportunity to compare year-over-year results in Atlantic City’s nine-casino market.”
Casino Competition Gets Fiercer in the US
Some gaming analysts feel that the increase in casino competition is leading to Atlantic City’s gaming revenue decrease. Many states are beginning to embrace the gambling industry, including Pennsylvania.
Lawmakers in Pennsylvania recently approved ten new satellite casinos to open up. Penn National Gaming recently gained approval to open a new gambling establishment in York County. Hope is that these mini-casinos can help to bring the state more revenue.
Illinois is also working to revamp its gambling industry. Governor JB Pritzker recently approved a new bill that allows five new casinos to open here. A casino is set to be built in Chicago for the first time in history.
Atlantic City is in no danger of failing. This city remains one of the hottest gambling markets in the United States. It’s very likely that Atlantic City’s gaming revenue will increase once again during the year’s third quarter.
Make sure to stay tuned for more updates to this AC’s gambling industry over the next few months!