New York gambling expansion could harm Atlantic City casinos | Yogonet International
With more local places to play, it will have a tough time bringing in new revenue

New York gambling expansion could harm Atlantic City casinos

2008-12-18
United States
Reading time 1:08 min

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 us$ 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 us$ 0.20. That’s twenty cents per share, down from us$ 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.

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