"Atlantic City is not a market in which we're currently exploring opportunities. We see the market there continuing to contract over the next couple of years," said Eric Schippers, a spokesman for Penn National Gaming Inc.This type of industry (at least in AC) reminds me of the newspaper industry where a new business model needs to be implemented.
Sunday, February 14, 2010
Atlantic City
Atlantic City has appeared in trouble since the Pennsylvania casino's have opened. Increased competition drives down what economists call 'economic profit' (unusually large profits). What we should (and have) witnessed is the industry moving from one more monopolistic toward more competitive (look in your text for more on those types of industries). This article outlines the past few years in the industry and gives the general pessimistic tone for those who remember AC in its glory years. Should the government do anything about it? (like maybe legalize sports betting to give AC back its competitive edge... an issue more complicated than it appears... and a good one for a position paper in this class) Maybe a more relevant question is CAN New Jersey actually do anything about it. The money quote:
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It seems the excitement built around AC has slowly been forgetten, due to several new casinos built elsewhere, especially in Pennsylvania. It seems many investors are either withdrawing their plans for casinos in AC or scaling back size. It is true.. Ac is no longer where its at. A very recent article was written in the Philly Inquirer by Suzette Parmley about this issue. Check it out...
ReplyDeletehttp://www.philly.com/inquirer/business/20100214_Reversal_of_fortunes_for_A_C_casinos.html
It seems that the casino companies are fishing out more then they can reel in. They are paying very large sums of money for land and reconstruction, but then leaving them unfinished? They should finish the building and open them up for business. That will bring more jobs and revenue to Atlantic City. On the other side of it, in today economy people just do not have leisure money that they can be at risk of loosing at casino’s.
ReplyDeleteI don't foresee the government or the state of New Jersey getting involved in the problem.I agree with the fact that it's similar to the newspaper industry issue. I think the casinos of Atlantic City need to come up with new plans and ways of bringing in more money. This is something that is typical to a competitive parketplace. If Atlantic City can come up with a way to make themselves preferable to other casions, then it works out better for the business and the consumer alike. If Atlantic City can find an innovative way to increase business, then perhaps more gambling companies would be willing to invest in them. I wish them luck, it's going to be difficult.
ReplyDelete-dana ricci
I think a lot of the customer loss for Atlantic City is mainly because of the downfall of the economy. Yes, casinos are popping up everywhere especially in Pennsylvania but none of them compare to AC. There is no beach, fancy hotels and gourmet resturants at these other locations. Unfortunatly in order for people to indulge in these things they need money. In a year or two I am sure AC will pick back up again. I think legalizing sports betting in Jersey is a bad idea. That could get wayyyy to messy.
ReplyDeleteThe downfall of the Atlantic City casino scene is pretty shocking to me. From what I thought, it was still a popular place. I was even more shocked to hear the Pennsylvania now holds a possible pull in the casino industry. I can see how certain economic factors may contribute to the loss of interest and money in New Jersey; however, I did not think it would be so bad that a one casino would be left uncompleted and so many other companies would completely pull out of future construction.
ReplyDeleteAtlantic City is slowly dying due to the fact that there is increased competition from the surrounding areas. Within a two hour ride from Temple you would be able to gamble at atleast three different casinos. The only thing these small casinos offer are slots and computerized roulette and blackjack. However, when these small casinos bring in table games, people will not want to make the trip to Atlantic City when they could just go 10 minutes down the road. Therefore Atlantic City will be forced to offer comp rooms to get more business.
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