New York Gambling Expansion Could KO Atlantic City Casinos
It’s still considered a long shot, but if the New York gambling expansion bill passes a special session on December 15 it could put the final nail in the coffin of Atlantic City casinos.
The bill was put onto the docket in the final moments of the Republican powered Senate. That power will be gone in January when Democrats take control in New York so the Republicans are attempting to get through all their final initiatives.
If the bill passes it would actually mean great things for New York. The state would bring in an extra $175 million from all electronic casino games that would be added to the state’s race tracks. However, the bill would likely be the death knell for already fledgling Atlantic City economy.
The casinos in AC have actually improved in quality, but they have been on a steady decrease in revenue since Pennsylvania passed a law that allowed casino gaming in their state. New York and New Jersey residents simply go to the closest place that offers gaming entertainment, and Atlantic City seems to be getting further and further away. With even more local places to play, Atlantic City will have a tough time bringing in new revenue, as well they will find it difficult to retain players who they have had a relationship with for years.
Trump’s stock, which only owns his gaming and casino developments, right now most of which are located in Atlantic City, is trading for about $0.20. That’s twenty cents per share, down from $8 per share earlier in the year. The company is looking for expansion in other areas to help save them, as well they are looking to the sale of the Tropicana, a failing casino they own, in order to raise their earnings. However, if New York passes this bill neither of those things will matter.
The bill if passed would allow racetracks to operate electronic style gambling machines. This would allow players to play games like blackjack, roulette, and slots.