After reviewing the news and insights from the East Coast Gaming Congress this past Monday and Tuesday, I was not thrilled to say the least. Analysts were agreeing with Caesars CEO Gary Loveman that "right sizing" may be in order for Atlantic City casinos. This is the millennial way of saying "we are about to downsize and make ourselves profitable". This way does little for the economy. Another closing similar to the Atlantic Club will put over 1,000 people out of work and lower tax revenue.
The other notable information from the conference came from Hard Rock CEO James Allen. He indicated that Hard Rock had minimal interest in Revel at this time. The amount of property reinvestment needed appears to be a huge factor. This may seem peculiar since Revel is the newest hotel in Atlantic City. The design is appealing to a tourist but not to the gaming public. Any buyer would be able to get this stunning resort for a fraction of what it cost to assemble.
The glowing news came from the IGaming seminars. Regulators from New Jersey,Nevada and Delaware expressed optimism in the potential growth of the online gaming market. The compact between Delaware and Nevada was cited as one the methods to increase liquidity. The marketing opportunities in the state of New Jersey are abundant. The general public in the Garden State is still unaware and uneducated about online gaming. This is from a region where gambling is one of the major industries. There is a tremendous upside here.
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