New promise and old problems due in 2019 for Atlantic City
ATLANTIC CITY >> The new year holds promise and peril for Atlantic City, with new benefits facing off against old problems.
The East Coast gambling resort is on something of a roll, having regained its balance as a smaller market following years of casino closings and job losses.
It is part of New Jersey’s skyrocketing sports betting market, which could rival that of Nevada before too long. Atlantic City reversed some of the casino closings and job losses by reopening two of the five casinos that shut down since 2014, and a new college campus has brought thousands of students and renewed economic activity to the downtown area.
But the city also faces some familiar problems in 2019. Some analysts and industry executives worry Atlantic City could be making the same mistake that helped bring about the casino crisis in the first place — having too many casinos in a market that can’t support them all.
And after a period of political calm, the city again finds itself in the crosshairs of outside law enforcement agencies: The FBI raided the home of Mayor Frank Gilliam Jr. in December, carting away boxes and computer equipment. No charges have been filed as a result of the raid, and authorities have been tightlipped about it since.
Here’s a look at some big questions facing Atlantic City in the new year:
GETTING (AND BETTING) IN THE GAME
Sports betting has been on a rocket ride since it began in New Jersey in midJune, with $928 million worth of bets having been made between then and the end of November. That has provided the state’s casinos and racetracks with $73.2 million in revenue, and generated nearly $8 million in taxes. That kind of money, while nice to have, won’t make or break a casino. But when coupled with winnings from internet gambling, sports betting provides another revenue stream for Atlantic City’s casinos. All eyes will be on the city in the run-up to the Super Bowl and the March Madness college basketball tournament to see if enthusiasm for sports betting translates into occupied hotel rooms, packed restaurants and busier casino floors.