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Pennsylvania Gaming Will Surpass Atlantic City, Analysts Predict
April 5, 2011
Next year, Pennsylvania will likely overtake Atlantic City, N.J., as the nation's second-largest gaming market, behind only Nevada, a panel of Wall Street analysts predicted last month at the 7th annual Pennsylvania Gaming Congress & Mid-Atlantic Racing Forum.
According to Atlantic City newspaper The Press of Atlantic City, Pennsylvania — which has 10 casinos spread across the state — has been growing by double-digit margins while Atlantic City's gaming revenue has fallen 30 percent since peaking at $5.2 billion in 2006. Last year alone, Pennsylvania casinos collected approximately $2.5 billion in revenue, compared to $3.6 billion in Atlantic City, which has 11 casinos.
"Pennsylvania gaming, sometime next year, will most likely be bigger than Atlantic City," said panelist Andrew Zarnett, managing director of Deutsche Bank.
Although Atlantic City is fighting back in the face of increased competition — a new casino-resort, Revel, is expected to open there next year — it won't likely be enough to revitalize the city, according to observers, some of which believe Revel could "cannibalize" business from existing casinos, The Press reported.
While gaming is contracting in many regional gaming markets, including Atlantic City, demand in Pennsylvania is growing thanks to the recent expansion of state gaming laws. Although Pennsylvania has had slot machines since 2006, it legalized table games such as blackjack, craps and poker last summer — which has helped the state attract visitors from not only Pennsylvania, but also New York and New Jersey.
"It's been a very good run for us since the opening of table games," Robert DeSalvio, president of the Sands Casino Resort in Bethlehem, Pa., told The Press.
Next up for the Keystone State: gaming hotels. "Hotel rooms are what really distinguish the Atlantic City casinos from their Pennsylvania rivals right now," The Press reported.
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