The latest numbers for the state’s casinos provide a mixed bag for the industry. Revel broke the $20 million mark in casino revenues in August, and Atlantic City’s 12 casinos collectively saw their monthly revenue increase by 12.6 percent compared with a year ago. While the numbers show an increase, the comparison is to August 2011 when Hurricane Irene forced the casinos to close for three days. To find out what the figures mean for Atlantic City, Senior Correspondent Desirée Taylor spoke with Guy Michael, an attorney specializing in gaming law and one of the founding members of the New Jersey Division of Gaming Enforcement.
Michael interprets the latest report as a good sign. “I would try to look at these as optimistic figures rather than mixed,” he said. “There’s certainly some of the casinos that didn’t perform the way they would have liked but others, they increased their revenues which is certainly encouraging.”
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Since its high profile launch in May, Revel has had a difficult time gaining a firm footing in the gaming landscape. According to Michael, the timing couldn’t have been worse for opening a $2 billion facility.
“They have opened at a time as many have said the perfect storm of difficulty — sluggish economy combined with enormous competition that encircles the city — north, south and west. And so it is difficult for them to generate the kinds of revenues that are necessary to keep up the payments on a $2 billion facility.”
He says the situation in which Revel finds itself isn’t necessarily the fault of the individual operator and instead points to a flaw in legislation. As a former member of the New Jersey Division of Gaming Enforcement, he acknowledges his own part in the creating the legislative structure. “As someone who had a part in that I take some blame for what we intentioned well but may not have been good in the execution,” he said.
The stakes are high for Revel’s success and not just for Revel. “If Revel should fail it would certainly be a black mark on Atlantic City. People like to come to a place they feel are successful and happening resorts. If the information about Atlantic City is all negative then it will not be an attractive location for people to enjoy.”
What can help Atlantic City, Michael says, is for Internet or sports betting to be legalized. “The ability of New Jersey to stamp its own brand on gaming as opposed to just being another place you can go and play the same games is very important to the city.”
The city’s current situation is a far cry from the boom years when it was the place to go for gambling on the East Coast.
“Unless you went to Las Vegas or out of the country, you were unable to enjoy casinos. So it was a bonanza for those who were able to open it at that time,” Michael said. “As competition grew, those days waned.”