We are seeing the adverse effect that Hard Rock and Ocean Resort Hotel and Casino are having on the Mid Atlantic Gaming region prior to opening. This side effects will not diminish the magnitude of each property and their opening dates. We like the concept of both new properties opening on the same day. They have brought attention back to Atlantic City along with thousands of jobs and tax revenue.
The side effects are the secondary problems for casinos that operate in Pennsylvania and Maryland. Many workers at those facilities migrated to them when Revel, Showboat and Taj Mahal closed. Many still have residences in or near AC and were looking for an opportunity to return. This will create a deficit in the short term for casino operators in those aforementioned states. The positions that will take the biggest hit are food & beverage, player development and table games.
Another secondary effect is the anticipated entertainment that both properties will have. Ocean Resort will have Top Golf as part of their amenities. Hard Rock announced they will have over 300 diverse live performances. The experience of going to Atlantic City will trump the convenience of gaming locally in the short term. Since entertainment dollars are judiciously spent, customers will be selective about what acts and events they are going to see.
We will elaborate in a future post as to what alternative methods the casinos within 2 hours of Atlantic City can do to respond. A link to "Side Effects of You" by Fantasia is here in the meantime.
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Look forward to seeing you at the East Coast Gaming Conference in AC.
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