Atlantic City gambling industry worth USD 3.7B

Despite losing half its value over the past decade, the gaming industry represents a more than $3.7 billion economy, a robust industry for a city of any size, Press of Atlantic City reported. 

Figures through the first nine months of the year put Atlantic City on a similar trajectory in 2016 — there was $2.8 billion in total revenue through September. The impact of Trump Taj Mahal Casino Resort’s closing in October is still to be determined.

Still, the size of the industry supports development and can do so further with not only gambling revenues, but sales of food, beverages and other nongambling sources making up a larger percentage of the pie, developers and analysts say.

“I think any mayor in the state would raise their hand right now if you said, ‘Hey, who wants $2.5 billion going through their town?’” said Wasseem Boraie, vice president of Boraie Development.

Drawn to the size of today’s casino industry, his company is building the $81 million Beach at South Inlet, which features 250 apartments with hardwood floors, granite counter tops and stainless steel appliances.

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A decade ago, gaming revenue totaled $5.2 billion. But competition from outside the market contributed to the closing of five casinos since 2014

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“A.C. will never be the casino resort we were in the ’80s and ’90s, but, like the Vegas Strip, we could turn our rooms, restaurants and convention departments into true profit centers while also helping the noncasino properties as well as other South Jersey resorts,” said Steve Norton, a former Atlantic City casino executive who runs a consulting company, Norton Management LLC.

Atlantic City derives about 67 percent of its revenue from gambling.

Las Vegas derives 35 percent of its revenues from casino gambling, he said.

Over the past couple of years, Atlantic City properties increased their nongaming attractions. The increase in nongaming attractions has led to a steady growth in nongaming revenue.

In 2012, nongaming revenue totaled $252 million, while last year, nongaming revenue totaled more than $998 million, according to state records.

Attracting more private-sector business and entrepreneurs could lead the city back, said Michael Pollock, managing director of Spectrum Gaming Group.

“I don’t know — and will not try to predict — the precise nature of which ventures will succeed and which won’t, but I do know this: Businesses ranging from small restaurants to the Borgata have shown that, with the right business plan and the right capital investment, you can still make money in Atlantic City,” Pollock said.

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Las Vegas’ gaming economy generates more than $16.7 billion a year

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The Orlando tourism industry is responsible for more than $31.7 billion in revenue.

Despite the comparative size of Atlantic City’s casino industry, without the introduction of gaming to the city four decades ago, the resort would have met the same fate as other older New Jersey cities, said Richard Perniciaro, director of the Center for Regional and Business Research at Atlantic Cape Community College.

“If you look around the state, there is not one older city that has resurrected itself — Camden, Paterson, Asbury Park, Newark, etc. All remain a drain on the state’s economy,” he said. “This is a pretty good indicator that if not for casinos, Atlantic City would have been like those cities over the last 30 years.