With GGR in New Jersey growing quickly, lawmakers are taking preemptivemeasures to limit the expansion of the gambling industry in a bid to weatherabrupt changes in the gaming climate, which is going to get difficult for theGarden State.
New Jersey to Reconsider Casino Expansion
With New Jersey’s Gross Gaming Revenue (GGR) growing at a headypace, officials are beginning to realize the long-term sustainability of thecasino industry in the Garden State may be close to a tipping point.
After New Jersey’s sports betting handle overtook Nevada’s several months in a row, the New Jersey Division of Gaming Enforcement (NJDGE) has cautioned that the bonanza would not continue for much longer.
Similar to Nevada, New Jersey may now consider to limit the number of physical properties that offer gambling products.
So far, NJ has nine land-based casinos, and based on a report presentedto a state Assembly Panel on Thursday and conducted by Rutgers University,no more properties should be allowed.
A Crowded Casino Market in the Northeast
Jim Johnson, a champion of economic stability in New Jersey whoworked with Gov. Phil Murph 7BALL CC y, has been among the people to voice concernabout expanding the casino industry any further.
Mr. Johnson referred to the sustainability of even existing casinos ‘avery serious concern,’ posing its own challenges. He painted a gloomy picturefor the entire industry:
“The trendlines suggest things are going to be down. The Atlantic City casino industry is vulnerable to challenges from within, and competition from outside the state. The data is really stark.”
Based on the report, a soon-to-arrive casino in Philadelphia’s stadiumdistrict would syphon off as much as $150 million from New Jersey.
The minimum projected amount that would swing the way of Philadelphia isat least $63 million. The upcoming property will feature some 2,000 slotmachines, proving a valuable hub for gaming operations.
Adding More Casinos – That’s Just a Bad Idea
Responding to a suggestion to convert the Snowboat hotel into a casinoestablishment, Democratic Assemblyman Ralph Caputo called the move a ‘badidea,’ as the gross operating revenue of casinos has started declining.
Mr. Caputo cited the arrival of the Hard Rock and Ocean Casino Resort as the main instigators of these problems. When Hard Rock bought Trump Taj Mahal – and rebranded it – the casino had lost $300 million already. Moving forward the state will take a closer look at what it can do to guarantee the sustainability of the industry.
The challenges are both internal and external. Casinos are adding moresquare footage and gaming tables whereas neighboring states are cozying up tothe idea of expanding their own gaming industries.
This leads to over-saturation in a rather constricted market that will eventually start biting into the work force, taxes, and more, lawmakers fear.
At least, the good news is New Jersey is working on the issue.
