Saturday, May 16, 2009
Atlantic City Casinos: It's Only a Flesh Wound
As if the times weren't already tough enough for the casinos in Atlantic City, Delaware Governor Jack Markell has signed his controversial sports betting bill into law, paving the way to sports betting and table games to make their way to Delaware's 3 racinos (one of which I pissed off with this cartoon).
Atlantic City’s casinos have been taking a beating, with gaming revenue down 15.7 percent for the first four months of 2009 and headed for a third straight year of declines.
It's estimated that table games in both Pennsylvania and Delaware would cut into Atlantic City’s $4.55 billion annual gaming revenue by about 5 percent, although he has also calculated a worst-case scenario of about 10 percent.
If Atlantic City wants to survive, it needs to get on the path following Las Vegas to a family destination. Atlantic City still offers something that no casino in the surrounding area can ever compete with - the beach.
Unless the Delaware racinos, protected by a state-run monopoly, get smart and build a casino at Rehoboth Beach.