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ATLANTIC CITY by Sharon Harris
$700 million that its residents played in Atlantic City casinos annually while helping the
horseracing industry.
Gaming industry experts point to Atlantic City’s casino industry as a wonderfully stable Atlantic City earnings this past spring have dipped slightly. However, Atlantic City opera-
environment to conduct gaming. Statistics reported by the American Gaming Association tors and investors remain convinced New Jersey is the place to be, given its very low tax rate
(AGA) reveal the 11 current casino licensees- the Sands closed in November 2006, generat- as compared to Pennsylvania and everywhere else. Also, billions in non-gaming amenities
ing less than 11 months of revenues- generated more than $5.2 billion for their corporate have opened to further entice and entertain visitors.
owners in 2006. Atlantic City maintained its rank as the second largest grossing gaming The July 2003 debut of the $1.3 billion Borgata, the joint venture of Boyd Gaming and
market in the United States. MGM Mirage, elevated Atlantic City to a new plateau. Built on reclaimed land, renamed
The seashore resort destination has reinvented itself in the past three decades, and Renaissance Pointe, the destination was helped by the construction of a $330 million con-
attracts more than 35 million visitors annually. Once considered a jewel among America’s necting tunnel. Borgata opened a new $200 addition in late June 2006; construction is
favorite vacation spots, Atlantic City lost its luster in the 1960s and 1970s due to increased underway on a $325 million hotel tower.
competition from other venues and expanded air travel. Other operators utilized similar strategies. The Tropicana opened its $285 million
By 1974, city leaders sought serious economic revitalization through a ballot measure to Quarter dining and shopping complex, designed to resemble old Havana; the three Trump
legalize gaming statewide. Up until then, Nevada was the sole gaming jurisdiction, and it properties pledged to spend more than $100 million to renovate and have opened Spice
was more than 2,000 miles away. It failed, and officials went to “Plan B”, which would limit Road at the Taj Mahal; Resorts Atlantic City opened a new hotel tower, Harrah’s expanded
casinos to Atlantic City, for the 1976 election. their entire property, and everyone else has upgraded amenities within their buildings.
After passing by a 57% to 43% margin, political leaders and legislators worked quickly to Ownership has also changed recently at several Atlantic City properties. Pinnacle
launch gaming. Local attorney Steve Perskie wrote the New Jersey Casino Control Act of Entertainment bought and closed the Sands in November 2006. Its planned implosion will
1977. He has since served as a legislator, Chairman of the New Jersey Casino Control allow them to construct a new $1.5 billion property, scheduled for completion in 2011.
Commission (NJCCC) and is currently a Superior Court judge. Aztar sold its Tropicana complex to Columbia Sussex; Apollo Management and Texas Pacific
Resorts International opened to thousands of excited gamblers in May 1978, followed dur- Group acquired Harrah’s, affecting four Atlantic City sites.
ing the next decade by industry giants like Harrah’s, Trump, Caesars, Bally’s and Tropicana.
In 30 years of legalized gaming, Atlantic City casinos have withstood numerous legisla-
tive, regulatory and competitive challenges. NJCCC Chair Linda Kassekert estimates billions
in gaming investments since 1976.
She says, “In addition to the existing $12 billion, three operators are spending over $1
billion right now… there are plans for several new casinos that will invest billions more.
They are making that kind of commitment to New Jersey because of the healthy business
climate and the highly respected regulatory environment we have created.”
Alone as an East Coast gambling mecca for almost 20 years, Atlantic City now confronts
growing competition from neighboring states. To the southwest, Delaware operates three
commercial racetrack slots parlors. To the north, New York has opened eight racino venues
since 2004.
Perhaps the biggest competitive threat has been the recent debut of new Pennsylvania
racinos, directly to the west. Pennsylvania lawmakers aimed to keep much of the estimated
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