With two new casinos coming to Atlantic City this summer, there is worry that the industry will not be able to handle additional gaming options.
Atlantic City is booming, with gaming venues seeing top earnings from both land-based and online game play. The area seems to be in a revitalization period, coming back from a big hit when four casinos shut down in 2014 and one in 2016. This summer, the region will gain two new casinos and could possibly see even more casinos in the future. Is Atlantic City ready for more gaming? Will the industry become oversaturated? These are the questions that analysts and gaming experts have been asking. According to recent reports and financial info, the city is capable of handling the two new operators.
The Hard Rock Hotel and Casino Atlantic City and the Ocean Resort Casino are both set to open this summer, however, no launch date has been provided. Both casinos are located in former gaming venues, with the Hard Rock in the former Trump Taj Mahal and the Ocean Resort in the Revel. Each will offer land-based gaming and hotel stays along with dabbling in the online sector.
With the seven existing casinos doing so well in the region, many began to wonder if the two additions would be too much and that the industry might become oversaturated. However, this does not seem to be the case.
Information provided by the state’s Division of Gaming Enforcement as well as the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism of Stockton University, the area is actually pretty prepared to handle two new venues.
In reviewing the financials from 2017, the seven operating casinos were able to see an increase in overall revenue totals for the year. Six of the seven were able to see a profit increase when comparing year over year. It seems that tourism totals are up, and players are visiting the region in higher numbers than previous years which is helping to increase the earnings of each venue. With two more properties in the mix, it should only prove to add to the revenue numbers brought in via tourism and residents who travel to try out the new venues.
The Gaming, Hospitality & Tourism group conducted research of Atlantic City and found that tourism numbers are actually low. According to research, tourism numbers are actually lower than normal. However, even though tourism seems to be dropping, the occupancy rates as well as room rates increased last year. As far as hotel occupancy was concerned, the casinos of Atlantic City saw an increase of over 5% year-over-year. The rate was at 86.9%.
The average room rate for 2017 was $108.35 which is just a bit higher from the 2016 numbers of $106.71. Analysts only expect the trend to continue as the two new venues are added to the overall operations in the state.
It is expected that once the Ocean Resorts and Hard Rock open this summer, visitation to Atlantic City will increase. Players will be visiting both resorts to see what they offer and most likely hit a few other casinos while in town. It will certainly be interesting to see how the region fares once the two new casinos have been in operation for a few months. We won’t get a full report of how Atlantic City will change until next year when there are several months to compete. Hopefully, the region will be able to continue to see top revenue earnings as the two new casinos launch in the coming weeks.