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Originally Posted by bobaby007
ATLANTIC CITY, SUDDENLY SURROUNDED
Go back 30 years, and there were, of course, really only two gaming markets: Las Vegas and Atlantic City, notes Alex Calderone, who provides turnaround and crisis management services to the gaming sector at Conway MacKenzie. Between 1980 and 1990 only a few more jurisdictions legalized gaming, like Iowa and South Dakota. From 1990 to the present, however, 30 additional states have legalized gaming or implemented tribal gaming.
I still wonder why AC never really took-off. I was naive enough to think the city-by-the-sea could actually compete with Vegas. (This was back in the 80s.)
I guess there are/were many factors, local and state politics, greed, etc.
It’s really a shame.
Saying AC "never took off" isn't exactly right. Gaming revenue in 2005-2006 was nearly the same in Las Vegas and Atlantic City. However AC had about 90% less non-gaming revenue.
The reasons are pretty easy to discern: no real airport, very minor convention business, crappy weather most of the year, far stricter regulations to obtain a casino license, late to the party with upscale shopping/dining/entertainment/clubs, driving out visionaries such as Wynn, old facilities (some rooms at Bally's, Resorts and Caesars are _still_ the original, pre-casino hotel rooms), ultra-corrupt and misguided government, very little cheap land.
AC had no new casinos built from 1990 to 2003. Meanwhile, Las Vegas opened MGM, Bellagio, Hard Rock, Mandalay, Paris, NYNY, Venetian, and many more. Investors spoke with their wallets. The city was growing, lively, exciting, while AC just stayed the same. Las Vegas was also the fastest-growing city in the US nearly every year in the 1990's, allowing smaller non-Strip players to thrive (as well as many non-gaming businesses). AC has no "locals" and you aren't allowed to build a locals-style casino anyway (west of Pacific Ave, less than 500 rooms).
Don't forget that the 1980's were pretty grim in Las Vegas. AC did initially take a huge amount of business away. I read that in 1985 airlines cancelled the last direct flights from NY to Las Vegas. But most of the US population had not been exposed to casino gambling and thus the growth potential was still enormous. AC gave East Coast people a taste, then once the Mirage was built, the floodgates opened. Las Vegas took off and never slowed down until the current recession, save for a speed bump after 9/11. Can AC pull off a similar turnaround?