ATLANTIC CITY — Casinos in the northeastern United States are facing a number of challenges as they prepare for the arrival of new competitors in New York City.
A possible smoking ban in Atlantic City, continued debate over whether Internet gambling hurts or helps brick-and-mortar casinos’ revenue, loss of business due to illegal online operations, and more were discussed at a major conference held in Atlantic City on Wednesday. This was one of the issues identified at the casino conference.
Panelists at the East Coast Gaming Congress held at the Hard Rock Casino talked about the disruption to the industry, especially in preparation for the influx of three downstream New York casinos that are widely expected to redefine the region’s gambling market. Discussed.
New York State is in the process of selecting a casino site and answering hundreds of questions from potential casino operators before getting closer to awarding a license.
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Mark Giannantonio, chairman of Atlantic City’s Resort Casinos and New Jersey Casino Association, said the city “has two years” to prepare for new competition from its neighbor to the north.
“We clearly see a threat to gaming in general in New York,” he said, predicting increased competition for customers from regions and other countries who choose to come and gamble in New York.
He also said the New York casino would impact competitors in eastern Pennsylvania and Connecticut.
Giannantonio said Atlantic City needs to improve cleanliness, infrastructure and public safety to meet the challenges of new competition.
A group of Atlantic City residents called on the Casino Reinvestment Development Authority to say no to expanding the city’s weed-friendly green belt.
“There are limits to what casinos can do,” he says. “We will provide jobs and capital. Why not combine our cityscape with beautiful views of the ocean? Let us take care of our homeless population once and for all. We will take homeless people off the streets and under boardwalks and provide them with the services they need. We need investments and programs that will help us.”
Mayor Marty Small did not immediately respond to a request for comment Wednesday afternoon.
Stacey Rowland, president of the New York Gaming Association, said new casinos in the state will seek to capture gambling money that is currently going to other states.
“Competition is good,” she said. “Competition with New York City will be an incentive for (rivals) to step up.”
Atlantic City also faces persistent pressure from casino workers who want to eliminate smoking in gambling halls. They are pushing lawmakers to pass smoke-free legislation and recently filed a lawsuit to overturn a state law exempting Atlantic City casinos from the state’s Clean Indoor Air Act.
Giannantonio said the smoking ban is “one of the biggest threats to our business right now.”
He predicted this would result in the loss of up to 2,500 casino jobs and millions of dollars in lost state tax revenue. He favors a compromise that would move away from table games and allow smoking to continue in areas where employees are not forced to work.
Casino employees reject these claims, arguing that gambling establishments will be better off financially by attracting non-smoking customers who currently avoid gambling establishments.
A referendum petition containing the signatures of approximately 1,100 residents opposing the expansion of a cannabis “green zone” onto Albany Avenue has been submitted to city staff, according to a Wednesday news release from City Councilman Jesse Kurtz.
“Casino executives continue to make the same discredited claims and promote false compromises that only continue to force our own employees to breathe toxic air at work every day.” said Lamont White, a Borgata dealer and casino organization leader. “They don’t care at all about the cancer, heart disease, stroke, COPD, and countless other illnesses that result from this unacceptable work environment that every other worker in New Jersey should not have to face. not.”
Some states are reconsidering Internet gambling as a way to raise new revenue. It is currently legal in New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island.
Giannantonio said online gambling is contributing to Atlantic City’s physical casinos. Resorts has had success with its online division, partnering with sportsbook DraftKings.
But Rob Norton, president of Cordish Gaming Group and Live!, whose casinos include facilities in Maryland, Pennsylvania and Florida, said Internet casino gambling is having a negative impact on brick-and-mortar casinos.
“It’s cannibalism,” Norton said. Speaking on behalf of the industry at large, he said: “The approach we are currently taking pits us against ourselves.”
His views are disputed by industry insiders who argue that Internet gambling is complementary to the brick-and-mortar casino business.
“For New Jersey, it was an add-on,” Giannantonio said. He said Resorts has successfully integrated its customer loyalty program into its physical stores and online divisions.
Online sports betting has become a “funnel” for “i-gaming” and in-person gamblers, he said.
In a unanimous vote after a short closed-door meeting, the Casino Reinvestment Development Authority named former Atlantic County Sheriff Eric Scheffler as its new executive director.
“A lot of people who bet on sports online are also coming to a physical location to place their bets,” Giannantonio said.
All panelists cited illegal offshore gambling dens and land-based unlicensed and unregulated slot machines as another threat to the casino industry.
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