Will Online Gambling Ruin the Casinos in Atlantic City?

Covid 19 Atlantic City Hardrock Background

The past couple of years have been very interesting for the casino operators in New Jersey. The growth of online gambling now seems to be taking a toll on the casinos in Atlantic City. Some even feel this could eventually lead to many of the casinos here permanently closing down.

Officials in New Jersey are working to protect the state’s land-based casino industry. Now is a great time to talk about how these properties might fare in 2022.

Let’s get into it!

Online Gambling is Taking a Toll on the Casinos in Atlantic City

New Jersey has been one of the country’s major gambling hubs for decades. Atlantic City is home to many popular casinos. These gambling venues helped to draw in tourism from throughout the east coast and generated major tax revenue for New Jersey.

Some of the casino owners here have recently complained about the high tax rates set on their properties. An amendment to the PILOT bill was eventually introduced as a way to lower these tax rates. This amendment was approved last week in an attempt to protect the casinos here from possible closures.

New Jersey’s casino industry continues to face challenges. Many analysts are pointing toward the growing popularity of online gambling in the state. This form of gambling seems to be taking away from the revenue earned inside land-based properties.

Both online casino gambling and online sports betting are legal and regulated in New Jersey. Due to the Covid-19 pandemic, more residents in the state are choosing to gamble online, rather than inside a land-based property. It’s becoming a bigger problem for the casinos here and officials continue working to fix this issue.

It is an unusual time for the entire US gambling industry. Let’s take a quick look at how states in the northeastern area of the country are changing their gambling regulations.

Competition in the Northeastern Gambling Industry is Increasing

For years, Atlantic City was the only real gambling destination in the northeastern US. This small city is still home to a large number of popular casinos. Several other states in this region have expanded their gaming industries in recent years and competition is quickly growing.

Pennsylvania is now home to a massive gambling industry. A variety of popular tribal and commercial casinos are currently operating here. Sports betting is allowed in this state, too. Pennsylvania is also one of the few states to allow both online casinos and internet sportsbooks to operate.

New York once had some of the strictest gambling regulations in the country. Things have changed and both casinos and sports betting are now allowed here. Many are pushing hard to see a Class III casino opened in New York City in the near future.

Smaller states in this region including Maryland and Connecticut are expanding their gambling industries, as well. State leaders across the region are recognizing how much revenue can be earned. More gambling options are appearing in these states every month.

There is no doubt that Las Vegas remains the country’s biggest and most profitable gambling hub. Here’s a quick look at how this city might fare over 2022.

Analysts Expect Another Great Year for Las Vegas Casinos

Las Vegas has been on a roller coaster ride over the last few years. Throughout 2020, it appeared that the city’s casino industry was on the brink of collapse. Things completely turned around in 2021 and the casinos here set new monthly revenue records on several occasions.

Most analysts are expecting another solid year for this city’s casino industry in 2022. Casinos here continue working to provide a pre-pandemic experience for their patrons. That includes removing many of the intense regulations set in place in 2020.

Much of this depends on how the pandemic unfolds next year. New variants continue to surface, causing cases to rise and more health restrictions to be set in place. Even the best experts cannot predict how the pandemic will unfold next year.

2021 proved that Las Vegas can thrive even during these uncertain times. Just about everyone expects 2022 to be an even better year for the city’s gambling industry. Stay tuned for revenue reports to surface here as the months go on!

How do you think the casinos in Atlantic City will fare next year? Does online gambling threaten the properties here? Let us know in the comments section below!

Las Vegas Room Rates are Higher Now than in 2019

Las Vegas Sign With Strip And Fremont Backgrounds

Las Vegas remains the world’s gambling and entertainment hub. Throughout 2021, gambling revenue has been steadily increasing in this city. Tourism rates are going up, too. New reports claim that Las Vegas room rates are now higher than they were in 2019.

This is a very impressive statistic. It goes to show just how far the casino industry in Las Vegas has come in a short period of time. Today, we’ll talk about exactly how Las Vegas seems to be faring right now.

Let’s get into it!

Las Vegas Room Rates Have Continued to Rise Throughout 2021

A huge amount of attention has been put on Las Vegas over the past two years. Obviously, 2020 proved to be one of the worst years in history for this city. Things quickly turned around in 2021 and several monthly revenue records have already been set this year.

This week, reports surfaced claiming that Las Vegas room rates are now higher than they were prior to the pandemic. The Las Vegas Convention and Visitors Authority confirmed this to the media. Hotel room rates are about a third higher this last October than they were in October of 2019.

The daily average room rate in Las Vegas last October was $173.68. That is a high figure and represents a 28.3% increase compared to October of 2019. Some were also surprised to find that 3.39 million tourists flocked to Las Vegas in October, a huge increase compared to the same month in 2020 and 2019. Kevin Bagger, vice president of the LVCVA, spoke about this news to the media this week.

“With significant events and an improving convention segment, October saw the strongest visitation of the pandemic era both on weekends and midweek as the destination welcomed nearly 3.4 million visitors,” Bagger said. 

Many are now looking ahead to how Las Vegas will fare in 2022. There are certainly reasons to believe that the casino industry here will continue to thrive.

Las Vegas Casino Companies are Expecting More Success in 2022

Las Vegas is still home to many of the world’s most powerful gaming companies. That includes MGM Resorts International, Las Vegas Sands, and Wynn Resorts. All of these companies saw impressive revenue figures flowing in from their operations in Las Vegas.

Executives in these companies seem to be expecting another very successful year in 2022. As the LVCVA just reported, tourism rates continue to increase in the city. A massive number of individuals will likely make the journey to this city over the next few months.

Some exciting new properties opened in Las Vegas recently. That includes Resorts World, which opened its doors to the public over the summer. This property cost $4.2 billion to construct and is seeing more visitors every single month.

A huge number of major musical acts are making their way to Las Vegas soon, too. That includes Adele, who just announced a residency at Caesars Palace. More of these major 2022 residencies will be announced in the coming weeks.

The American Gaming Association’s prediction that 2021 would be the best year in history for the US gambling industry appears to be correct. Las Vegas is far from the only city to experience major revenue growth. Let’s take a quick look at how some of the other US casino hubs have been faring lately.

More US Casino Hubs Report Revenue Surges

Toward the end of 2020, gaming analysts seemed torn as to how 2021 would play out. Some pointed toward the easing of health restrictions as a sign that things would go well for casino companies. Others were unsure of how the pandemic would play out and expected another very difficult year for the industry.

The former proved to be correct. States around the country have been reporting very impressive casino revenue figures throughout the year. Some have fared better than others for one reason or another.

New Jersey is one state to see very impressive revenue figures. All of the casino companies in Atlantic City have seen very large increases in their monthly earnings. Sports betting revenue in this city has also hit several records throughout the year.

Places like Pennsylvania, Massachusetts, and Colorado have posted solid casino revenue figures, as well. Most feel that 2022 will be an even better year for the casinos in these states. Stay tuned for more information leading into 2022.

Are you surprised to see how high Las Vegas room rates are right now? How do you expect the casinos in Las Vegas to fare in 2022? Let us know in the comments section below.