With New Jersey’s Gross Gaming Revenue (GGR) growing at a drastic speed, officials are beginning to realize the long-term sustainability of the casino industry in the Garden State may be close to the point at which even small changes or incidents becomes significant enough to cause a larger, more important change.
After New Jersey’s sports betting handle overtook Nevada’s several months in a row, the New Jersey Division of Gaming Enforcement (NJDGE) has cautioned that the good fortune would not continue for much longer.
Just like some other states such as Nevada, New Jersey might follow their example. They might put a certain limit on the number of accessible physical properties that offer any kind of gambling products.
With the current statistics and information, New Jersey state has nine land-based casinos. There was presented report at a state Assembly Panel last week, which was conducted by Rutgers University. After the report, it has been conducted that no more than those nine properties should be allowed in the state for gambling purposes, which can stand as a solution.
The Northeast Market On Its Crowdest
Jim Johnson, a champion of economic stability in New Jersey who worked with Governor Phil Murphy, has been the one among the people to voice concern about expanding the casino industry any further.
Not only the further expansion is the topic of concern, but as Jim Johnson has referred to the already existing casinos, those are mentioned as the very serious concern as well. He further states in his comment regarding the subject, with painting quite a grey remorseful picture referring to the sustainability of the entire industry.
“The trendlines suggest things are going to be down. The Atlantic City casino industry is vulnerable to challenges from within, and competition from outside the state. The data is really stark.”
Based on the report, a soon-to-arrive casino in Philadelphia’s stadium district would draw oof as much as $150 million from New Jersey.
The minimum projected amount that would swing the way of Philadelphia is at least $63 million. The upcoming property will feature some 2,000 slot machines, which is one of the biggest on its account, proving a valuable hub for gaming operations.
Thinking Of SOme More Casinos? – Do Not!
Responding to a suggestion to convert the Snowboard hotel into a casino establishment, Democratic Assemblyman Ralph Caputo referred to the idea as a “bad idea” as the gross operating revenue of casinos has started declining.
Ralph Caputo cited the arrival of the Hard Rock and Ocean Casino Resort as the main instigators of these problems. When Hard Rock bought Trump Taj Mahal – and rebranded it – the casino had lost $300 million already by that time. Moving forward the state will take a closer look at what it can do to guarantee the sustainability of the industry and to maintain the stable prices and the revenues, despite the huge competition existing in the gambling market industry.
The challenges are both internal and external. Casinos are adding more square footage and gaming tables whereas neighboring states are cozying up to the idea of expanding their own gaming industries. The states differ, because of the population, choices and the existing regulations in the states.
This leads to over-saturation in a rather constricted market that will eventually start biting into the workforce, taxes, and more, lawmakers fear.
Well, while all of this could be an issue and some of the regulations might be needed to take into consideration and the whole situation to be reconsidered, at least New Jersey is the one who already tackled the issue and has brought it to the surface for further discussion.