Report Says More Casino Closings Possible in Atlantic City, Existing Regional Casinos May Struggle
A new report from Moody's Investors Service released Monday says as more casinos open in the Northeast, more casinos may close in Atlantic City.
Moody's says eight new casinos, worth about $5 billion, will be opening in the region over the next few years and that will put even more stress on business in Atlantic City. The firm did not predict how many casinos could close, but it did note that three Atlantic City properties are already "on the brink."
In their report, Moody's said, "As the number of casinos shrinks, some of the remaining casinos have seen revenues increase. But we expect increased competition will keep the heat on incumbents, and that number of casinos in Atlantic City will likely continue to shrink. We expect more casino closures to occur in Atlantic City as some struggle to grow their business and face additional competition."
And it's not just casinos in Atlantic City that may feel the crunch. Casinos in the Philadelphia area could also be impacted as the gambling pool continues to be divided further and further.
At least eight new casinos are expected to open between now and 2018 in Maryland, New York, Pennsylvania, and Massachusetts. Those new casinos will potentially impact existing gaming halls and race tracks across the Mid-Atlantic and Northeast regions.