Is reversing Atlantic City's fate possible?

2 August 2010

ATLANTIC CITY, New Jersey -- New Jersey Gov. Chris Christie has proposed a slate of reforms to revitalize Atlantic City.

One idea is a state takeover of Atlantic City's gaming and tourism district, removing the Boardwalk and adjoining areas from city stewardship. The gaming market has crumbled the past four years because of the recession and increased competition from neighboring states.

"Atlantic City is dying," Christie said in one of the great understatements of his short tenure as governor.

Gaming revenues fell to $3.9 billion in 2009, the lowest levels since 1997. Atlantic City has lost 12,000 jobs.

The Republican called current and past Atlantic City elected leaders "corrupt and ineffective." Christie believes the state can shore up the city's existing 11 hotel-casinos. A revitalized Atlantic City could attract investment and improve visitation and convention business.

If Christie is serious about reforms, he might want to start with state gaming regulators. New Jersey's Division of Gaming Enforcement chased MGM Resorts International from the market when it denied the suitability of the company's Macau joint venture partner. It was the only gaming body in the country to rule in that manner.

MGM Resorts sold the land underneath Borgata for $73 million last week. The company needs to sell its 50 percent share of the resort. We may get an idea this week if Boyd Gaming Corp., which owns the other half, will pony up an estimated $500 million to acquire MGM's stake.

Other development has dried up.

Pinnacle Entertainment killed plans for a 19.5 acre site on the Boardwalk and is selling the land, most likely at a 70 percent discount from its original $340 million acquisition cost.

Christie wants to salvage the $2.5 billion Revel project, which shut down construction in April after financing dried up and lead investor Morgan Stanley bailed.

Deutsche Bank gaming analyst Andrew Zarnett doesn't think saving Revel is a good idea, especially for Borgata. The resort and the market will suffer when Philadelphia's Sugar House Casino opens in the fall.

"On a long-term basis, we believe that (cash flow) at the Borgata will continue to trend down as the competitive landscape is expected to intensify," Zarnett told investors. "Atlantic City revenues, especially Borgata, will plummet if Revel Casino is fully built."

Some believe Christie's efforts might be a little late.

"In the long run, (Christie's plan) has got to help the market, but it won't prevent the market from shrinking in the short run," Moody's Investors Service gaming analyst Peggy Holloway told the Asbury Park Press.

Related Links
New Jersey Online Gambling
Deutsche Bank Securities Inc. Gaming Vendor Information
Borgata Hotel Casino and Spa Details


Copyright GamingWire. All rights reserved.
Featured Vendors
Casino Schedule Ease
House Tech Ads
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
House Tech Ads
Drive quality casino-gambling traffic to your brand from over 70 countries from our premium assets!
GamblersPick
Sunkist Graphics, Inc.
GamblersPick
Share & Read other players' reviews! A top player community-driven portal for online casinos.
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Betson Imperial Parts & Service
OCR - Online Casino Reports
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
OCR - Online Casino Reports
Delivers highly targeted casino traffic from over 70 countries! Get your casino listed today at OCR!
Kallop
TribalHub
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas
Talisman Group Creators of EZ Baccarat
Slot Machines Unlimited
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Patriot Gaming & Electronics, Inc.
Acres Manufacturing
Patriot Gaming & Electronics, Inc.
Patriot Gaming…Parts is what we do. Visit us: www.patriotgaming.com
Acres Manufacturing
Cashless Loyalty & Bonusing in a Single Mobile App
Regulatory Management Counselors, PC
Casino Trac - Table Trac, Inc.
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Casino Trac - Table Trac, Inc.
CasinoTrac™ is a full CMS platform, operating in 225 locations, across 13 countries, since 1995.
AmericanChecked
Global Gaming Expo (G2E)
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Global Gaming Expo (G2E)
The largest gathering of global, commercial and tribal gaming professionals in North America.
Dable Advisory & Consulting Services
Goldfinger Monitors
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
Goldfinger Monitors
Innovative touch-screen solutions - vibrant lighting, high-def imagery, bright, bold colors
Casino Network
Top One Tech Limited
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Top One Tech Limited
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
Oklahoma Indian Gaming Association (OIGA) Conference
Casino City Press
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.


Your Guide to 14,848 Gaming Industry Suppliers