Atlantic City investments a must as New York casinos loom, gaming panel says

“We’ve always been a destination city,” said Michael Monty, general manager of Bally’s Atlantic City. “I don’t think that changes with the construction of New York casinos. I don’t think that changes with the construction of Pennsylvania casinos and casinos throughout the other states that have been legalized in the past few decades.”

Addressing fears of profits lost to emerging New York City casinos, a panel of executives hosted by the Greater Atlantic City Chamber at Stockton University’s City Campus suggested ways to stay competitive.

Atop Tuesday’s question list was how competition from New York City gaming could affect the resort. That concern lingers while casino revenues are flat and costs have risen from inflation, the panelists said.

Speaking at the East Coast Gaming Congress in the resort last week, Jim Allen, chairman of Hard Rock, said he envisioned lost revenue from the New York market having an impact on the city, possibly leading to at least one city casino closing.

Hard Rock, which owns a casino in the city, is among the New York bidders. In fact, all four of Tuesday's panelists at the chamber event work for companies that are making bids to join the New York market, said moderator David Danzis.

"Atlantic City receives 20, 30-plus percent of its revenue from upstate New Jersey and downstate New York, and there's no doubt it is going to have an impact on this particular market," Allen told The Associated Press.

But that may not be the case, said Gregg Klein, senior vice president and general manager of Harrah's Resort Atlantic City, who suggested that both states sharing players could create a pipeline for players on the East Coast.

Harrah's parent company, Caesars Entertainment, has bid on building a new casino in New York's Times Square. 

"To me, that's the benefit from it is that we're finding and discovering new players and, hopefully, bringing them down here to Atlantic City," Klein said.

The city's gaming industry has not fully recovered from the COVID-19 pandemic, the panelists said.

Several aspects of the city, including bus ridership to and from the resort, would need to be improved, said Mark Giannantonio, president and CEO of Resorts Casino Hotel.

"All but three casinos are down," Giannantonio said, referring to Borgata Casino Hotel & Spa, Hard Rock Hotel & Casino Atlantic City and Ocean Casino Resort. "We're not where we used to be, for sure." 

The panelists said to keep the resort a top destination in travel books, more investments must be made to improve the city's image, such as the new indoor waterpark being built next to the Showboat hotel.

Other expenditures should include upgrading the Boardwalk and improving transportation, including more flights to Atlantic City International Airport. "We need some investment," said Giannantonio. "The community itself will benefit, and the city will flourish for decades to come."

By Eric Conklin