Once they were intricately linked as the only two “legal” areas to gamble in the United States. Since 1976, when the state of New Jersey joined Nevada as the only places which offered casino gaming in the U. S., the two have enjoyed a friendly rivalry as the years have gone by. Forty years later, it seems that there is a tale of two cities that have vastly different outcomes.
In an article earlier this month, journalist Brent Johnson of NJ.com discussed the problems of the city on the Jersey Shore. The New Jersey legislature is currently considering a proposal which would allow state officials to take over operation of Atlantic City due to municipal insolvency – essentially the city is bankrupt. According to Johnson, State Senate President Stephen Sweeney (who is entertaining the idea of running for Governor) is “pursuing the plan as the best way to save Atlantic City, which has given millions of dollars in casino tax revenue to the state for decades.” Sweeney has a powerful ally on his side, current New Jersey governor Chris Christie (back from his failed attempt at the GOP Presidential nomination), who has said Sweeney would be “given all the tools at my disposal” to make Atlantic City successful again.
Naturally, Atlantic City officials aren’t pleased with these moves. Atlantic City mayor Don Guardian says the plan from Trenton is “the takeover of a fascist dictatorship” and that it goes way too far. Guardian has some support from state Assembly Speaker Vincent Prieto, reports Johnson, but Christie is laying the blame for the failure of the city at Prieto’s feet should it occur. The problem at hand is that, without any action, Wall Street ratings agency Moody’s Investors Service says that Atlantic City could default on debt payments as early as April and may face bankruptcy.
To paraphrase Timbuk 3, “the future’s so bright, they gotta wear shades” in Las Vegas. According to The Motley Fool, development in Sin City is preparing to make the city even more attractive and not just to those who gamble. The Fool points out three projects that, once completed, should completely change the landscape of Las Vegas and “shift its focus away from gaming,” The Fool states.
The first project is slated for the north end of the Strip. Genting Group is looking to build Resorts World Las Vegas (the picture is what the proposed property would look like) at this location, a $4 BILLION complex that will include 7000 hotel rooms, a movie theater, convention arenas and a 30,000 square foot lake in the motif of a Chinese garden. Along with the Wynn, which will be located nearby, and the Venetian and Palazzo operations, the addition of the Resorts property would shift the balance of power to the north side of the Las Vegas Strip.
MGM Resorts is not getting left behind, building a 20,000 seat multi-purpose arena behind New York-New York that will be an enticement for professional sports teams looking for a new home. With the National Hockey League looking at Las Vegas as a potential expansion outlet, the MGM Resorts’ T-Mobile Arena would be a perfect spot for the franchise to play. Besides the NHL other sporting events (boxing and MMA, indoor motocross, indoor football, etc.), concerts and trade shows could be staged at the new property.
Finally, the Las Vegas Convention and Visitors Authority is looking to spend $2.3 BILLION to put a new Las Vegas Convention Center on the site of the long-gone Riviera Hotel and Casino. Located in the same area as the Wynn (see, the North End is booming), it would be a further indication that the city of Las Vegas is looking to move away from casino gaming and towards making the city a primo location for conventions. According to The Fool, at least one in 10 visitors to Las Vegas now go there for business purposes such as a convention rather than pleasure.
So why the big difference between the two? Atlantic City once was the ONLY spot to gamble on the East Coast when it opened in 1976. Since then, however, every state around New Jersey has opened some form of casino gaming, usurping the crowds that used to hit the Boardwalk (four casinos have closed in Atlantic City in the past two years). In 2006, the New Jersey casinos generated over $5.1 billion in revenues for the city and state; in 2013, those figures dropped to around $2.8 billion and, in 2015, fell to $2.3 billion.
Las Vegas, however, has a long history of gaming and – for good or ill – a constant ability to reinvent itself. Sin City realizes that there are a multitude of reasons that people come to the desert and tries to give it all to the people. As such, that constant “change” keeps people coming back. It also helps that it is one of the most popular destinations for air travel in the U. S., where Atlantic City is a good hour’s drive from the nearest major airport.
The “twin sisters of gaming” seem to have changed as they have gotten a bit older. Las Vegas will always be there, its chameleon-like visage constantly shifting with the times. The story may not be as good with Atlantic City, who is more like the fading starlet that is potentially past her prime.