Northeastern US Casinos Grapple with Online Wagering, Smoking Bans, and Looming NY Competition

The casino industry in the Northeastern United States is currently facing a perfect storm of challenges, as discussed at the recent East Coast Gaming Congress held at the Hard Rock casino in Atlantic City on April 17th. These challenges include the impact of illegal online operations, the debate surrounding the effects of internet gambling on brick-and-mortar casinos, and the potential implementation of a smoking ban in Atlantic City. Moreover, the imminent arrival of three new casinos in downstate New York is set to reshape the region's gambling landscape.

Mark Giannantonio, president of the Casino Association of New Jersey and Atlantic City's Resorts casino, emphasized the need for Atlantic City to prepare for the increased competition from New York. "We see New York gaming in general clearly as a threat," he stated, acknowledging that the new casinos will also impact competitors in Connecticut and eastern Pennsylvania.

Online Gambling the Future of Casinos?

To meet these challenges head-on, Giannantonio stressed the importance of Atlantic City improving its public safety, infrastructure, and cleanliness. "Casinos can only do so much. We provide the jobs, the capital. Let's match the streets with the beautiful aspects of the ocean. Let's take care of our homeless population once and for all," he remarked, calling for investment and programs to support the city's homeless population.

Stacey Rowland, president of the New York Gaming Association, confirmed that the forthcoming New York casinos aim to capture gambling revenue currently flowing to other states. "Competition is a good thing. The competition from New York City will be a motivation (for rivals) to step up," she said.

Another pressing issue facing Atlantic City casinos is the push by employees to ban smoking on gambling floors. Casino workers have called on lawmakers to pass smoke-free legislation and have filed a lawsuit to overturn a New Jersey law that exempts Atlantic City casinos from the state's indoor clean air regulations. Giannantonio warned that a smoking ban could result in significant losses in state tax revenue and the elimination of approximately 2,500 casino jobs. However, casino employees argue that a smoke-free environment would attract non-smokers who currently avoid casinos.

The conference also addressed the ongoing debate surrounding online gambling, which is now legal in several Northeastern states. While some, like Rob Norton, president of Cordish Gaming Group, believe that online casino gambling is cannibalizing brick-and-mortar casinos, others, such as Giannantonio, see it as a complementary offering. Resorts, for example, has successfully integrated its customer loyalty program across both online and physical platforms.

As the Northeastern casino industry navigates these challenges, it is clear that adaptation and innovation will be key to maintaining a competitive edge. Atlantic City must take proactive steps to improve its infrastructure and support its community, while also finding ways to integrate online gambling and address employee concerns about smoking. The arrival of new competitors from New York will undoubtedly shake up the market, but it may also serve as a catalyst for positive change and growth in the region's gambling sector.