As New York prepares to introduce expanded casino gaming in the Big Apple later this month, New Jersey Governor Mikie Sherrill is keenly conscious of the dangers brought by the arrival of one of the world’s most iconic cities.
The introduction of table games at Resorts World New York City next week has sparked new discussions about whether the Garden State should approve a constitutional amendment authorizing land-based casinos outside Atlantic City. For certain northern New Jersey residents, the journey to Aqueduct Racetrack and the nearby Resorts World casino is under 30 miles. For those individuals, the drive south to Hard Rock Atlantic City is roughly 115 miles, making for a one-way trip of almost two hours. Last week, Sherrill attended the Hard Rock for the East Coast Gaming Congress, one of the country’s oldest gaming conferences.
The growth of casino gaming in New York City has revived discussions concerning the addition of casinos at The Meadowlands and Monmouth Park to halt the leakage of tax income to the Empire State. In January, two state senators pre-filed a constitutional amendment intended to legalize two casinos at the racetracks. The proposed legislation faces strong opposition from Atlantic City stakeholders, who contend it would deliver a heavy blow to the casino sector along the South Jersey coastline.
Sherrill, who assumed office in January, tackled the dilemma during a keynote lunch.
“Indeed, we are encountering fresh challenges as rivalry from New York City becomes tangible. I understand the legislature is weighing options for that at present, but my attention is on Atlantic City,” Sherrill stated. “I am developing this city and the neighboring area in a manner that will create a collective vision for what lies ahead.”
Bally’s Kim considering AC transformation
Before Sherrill’s lunchtime speech on April 15, Bally’s Chairman Soo Kim delivered a short talk at the conference. The firm runs Bally’s Atlantic City, a casino offering 83,000 square feet of gaming area. The resort sits on Park Place and Boardwalk, two spots made famous by the Monopoly board game.
Kim provoked surprise when he proposed that some properties along the Boardwalk might be adapted to take advantage of the land’s value. Along the Atlantic coastline, Kim informed the crowd that there is no single piece of beachfront real estate that is not built upon at a “very high acreage dollars per square foot”.
Long Branch, a seaside town roughly 80 miles north of Atlantic City, has experienced double-digit increases in condo sales for units priced at $1 million and above. Last June, Business Insider characterized Long Branch as a formerly quiet town that is “rebranding as a luxury travel destination”.
Kim reflected on his time on Wall Street when he served as an analyst for the capital management division at Bankers Trust. Kim remembered a discussion with an oil trader who provided him with a plan for achieving success in the investment arena.
“Here for some cause, we have plenty of vacant land – we have deserted structures,” Kim remarked. “I sense that Atlantic City itself may have overlooked a saying that this oil trader shared with me, which was, ‘you’ve got to do one thing really well.’”
The threat from New York
Bally’s is among three casinos that were awarded a downstate New York casino license in December. Bally’s Bronx, a $4 billion venture, is situated in Ferry Point Park on a golf course previously owned by US President Donald Trump.
After his talk, Kim informed iGB that he anticipates a sharp decline in Atlantic City gaming revenues when Resorts World NYC reveals its enlarged operations. Resorts World plans to inaugurate the city’s first complete casino on April 28, the casino announced this week.
Kim, in the meantime, proceeded to characterize New York City as one of the “finest markets in the country”, if not globally. He holds that the potential in New York “overshadows” that of Chicago, where Bally’s is preparing to launch a downtown casino.
Regarding northern New Jersey, Kim acknowledged that Bally’s Bronx has not yet estimated the proportion of footfall that will originate from patrons in that area. However, he observed that the establishment will be situated near multiple New York City attractions including LaGuardia Airport and Yankee Stadium.
“How many Yankee caps are in northern Jersey?” he inquired instinctively.
However, Kim refrained from declaring imminent intentions to shut down Bally’s Atlantic City. Unlike Resorts World, Bally’s Bronx is not anticipated to open before 2030.
“I’m not claiming that gaming cannot exist in Atlantic City,” Kim stated. “I’m suggesting that perhaps now is an opportune moment for operators here to consider that this land could be more effectively utilized or that the most valuable investment for this property is a fantastic beach experience.”
Other key takeaways
– Talking about the Windy City, Kim gave an update on Bally’s Chicago, a $1.8 billion integrated resort. Although Bally’s has run a temporary casino at the Medinah Temple since 2023, the firm will be compelled to close the venue in September unless it gets an extension. A proposed law in the Illinois legislature could allow Bally’s several extensions to maintain the casino at Medinah Temple operating past this autumn.
Kim seemed unfazed by the possibility of closing the temporary casino, telling iGB that he still anticipates the permanent facility will open next year. “If we close the temporary casino, it’s not a catastrophe, we will still complete the real project,” he stated. “We are finishing in under 12 months.” Last October, S&P Global assigned Bally’s a ‘B-‘ Issuer Credit Rating, while cautioning that it might downgrade the rating if there are additional delays with the project.
– As anticipated, prediction markets featured prominently at the conference. Former New Jersey Governor Chris Christie appeared on April 15 representing the American Gaming Association. During a fireside discussion with AGA President Bill Miller, Christie was interrupted by a security alarm that sounded loudly multiple times. The alarm delayed the discussion for at least five minutes. Christie humorously attributed the interruption to prediction markets. “It’s Kalshi again,” Christie joked. “They are everywhere.”
– This year’s East Coast Gaming Congress represented the 29th iteration of the notable gathering, according to Michael Pollock, senior policy advisor at Spectrum Gaming Group. Pollock characterized the conference as having one of its finest rosters in the event’s history. The 30th edition next year will align with the 50th anniversary of a 1976 referendum that legalized casinos in Atlantic City.