Downstate New York's Proposed Casino Expansion and Atlantic City: Can They Peacefully Exist Together?
Atlantic City's gaming market is bracing for a significant shake-up as New York moves closer to awarding up to three new full casino licenses in the downstate region. The potential impact on Atlantic City's market is likely to be substantial and challenging.
New York's proposed casino locations, including Queens near Citi Field, Times Square, Coney Island, and the Bronx, will see the development of large-scale, fully integrated resorts with extensive amenities and gaming options. These resorts, with their massive gaming floors and luxury hotels, are designed to be destination resorts, potentially outshining some Atlantic City offerings.
The proximity of these new casinos to New Jersey's border, such as Yonkers Raceway, which is only about 8.5 miles from the George Washington Bridge, makes them convenient alternatives for New Jersey residents and visitors accustomed to Atlantic City.
The new casinos will feature full Las Vegas-style Class III gaming, surpassing the current limited offerings at New York’s racinos. This gaming variety and innovation could draw customers who seek more comprehensive casino experiences without traveling far.
Industry experts predict that millions of gambling dollars currently spent by New Jersey residents could shift to New York casinos if those new venues open and thrive. This shift could lead to a decrease in Atlantic City's in-person gaming revenues by 20% to 30%.
Atlantic City's core business, brick-and-mortar casinos, remained flat in 2024, while overall revenue rose by 9% due to the growth of online sports betting and iGaming. However, the introduction of large-scale, fully integrated casinos in New York could diversify revenue and introduce new dynamics to New Jersey's gaming market.
Atlantic City welcomed approximately 18 million visitors in 2024, down from 20 million in 2019. Despite the decline, the city's casinos contributed $883 million in taxes and supported about 23,000 jobs in 2024.
In response to the potential competition, New Jersey lawmakers are considering expanding full-service casino gaming to racetracks like the Meadowlands and Monmouth Park. This move could help Atlantic City maintain its competitiveness in the face of the impending New York casinos.
The situation in Atlantic City is complex, but one thing is clear: the introduction of large-scale, fully integrated casinos in New York’s downstate region is expected to create strong competition, potentially drawing significant patronage away from Atlantic City’s gaming market.
The proposed casinos in New York, with their extensive gaming options and luxury amenities, could draw financing from investors eager to capitalize on the new casino-and-gambling market in the downstate region, potentially overshadowing some Atlantic City establishments.
With the introduction of large-scale casinos in New York, there could be a significant shift of gambling finances from Atlantic City's casinos, leading to potential financial challenges within the market.
