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New Jersey mulls reducing casinos in Atlantic City

New Jersey mulls reducing casinos in Atlantic City

New Jersey are considering placing a limitation on number of casinos operated in Atlantic City. The former Governor of the city as well as Democratic Assemblyman suggested that the northeast U.S casino market is saturated and the new casino will probably hurt Atlantic City.

Giving some suggestions a cap on the number of casino licenses, the former Governor of Atlantic City, Jim Johnson called the ongoing health of the existing casinos “a very serious concern.”

As new casinos continue to open in neighboring states, “the trendlines suggest things are going to be down. The Atlantic City casino industry is vulnerable to challenge from within and competition from outside the state. The data is really stark.” He added further.

As per the predicted report of Rutgers, in Philadelphia’s stadium district, a casino is due to open next year with 2000 slot machines which could divert $63 million to $150 million in gambling revenue that is currently being spent in Atlantic City casinos.

A former Atlantic City casino executive and a Democratic Assemblyman Ralph Caputo panned a proposal to restore casino operations to the Showboat, which currently operates as a non-gambling hotel.

According to him, ‘AC’s overall gambling revenue has increased in the 15 months since two new casinos opened last year: Hard Rock, the former Trump Taj Mahal, and Ocean Casino Resort, the former Revel.’

But since the new entrants joined the market, the gross operating profit of the casinos has declined. On the other side the Republican Assemblyman Ronald Dancer also said a cap on casino license should be taken in notice and studied. In a statement, he said, “There are only so many gambling dollars to go around. This certainly needs to be part of the discussion.”

But whether all these concern will result in the limitation of the casinos or not that still has to be seen.