This guy will be in charge before too long.
Posted on 12/22/2013 4:40:30 PM PST by RKBA Democrat
With the closure of the recent Atlantic Club Casino Hotel, rumors of the bankrupt Revel being sold to Hard Rock, Las Vegas real estate prices remaining depressed, casinos opening up all around the country and online gambling legislation underway in various states, it seems as if the reasons for the very existence of Atlantic City and Las Vegas are in serious jeopardy.
Beginning in the late 1940s, Las Vegas became known as the 'adult playground of the world.' Celebrities knew they made the big time when their names graced the billboards of ‘Sin City.’ Gamblers hoping to make money would flock there all year and families looking for a nice getaway would enjoy relaxing by the extravagant swimming pools under the hot desert sun, seeing the various shows and concerts, and whenever possible, sneaking away to the blackjack tables while their kids slept.
It was paradise.
On the other hand, Atlantic City, once a major vacation spot during the roaring 20s and 1930s, as seen on HBOs Boardwalk Empire, collapsed when cheap air fare became the norm and people had no reason to head to the many beach town resorts on the East Coast. Within a few decades, the city, known for being an ‘oasis of sin’ during the prohibition era, fell into serious decline and dilapidation.
New Jersey officials felt the only way to bring Atlantic City back from the brink of disaster would be to legalize gambling. Atlantic City’s first casino, Resorts, first opened its doors in 1978. People stood shoulder to shoulder, packed into the hotel as gambling officially made its way to the East Coast. Folks in the East Coast didn't have to make a special trip all the way to Vegas in order to enjoy some craps, slots, roulette and more.
As time wore on, Atlantic City and Las Vegas became the premier gambling spots in the country.
While detractors felt that the area still remained poor and dilapidated, officials were quick to point out that the casinos didn't bring the mass gentrification to Atlantic City as much as they hoped but the billions of dollars in revenue and thousands of jobs for the surrounding communities was well worth it.
Atlantic City developed a reputation as more of a short-stay ‘day-cation’ type of place, yet managed to stand firm against the 'adult playground' and 'entertainment capital of the world' Las Vegas.
Through-out the 1980s and 1990s, these two places would become an integral part of American pop culture as the place to gamble and have fun no matter which coast you lived at.
However in the late 1980s, a landmark ruling considered Native-American reservations to be sovereign entities not bound by state law. It was the first potential threat to the iron grip Atlantic City and Vegas had on the gambling and entertainment industry.
Huge 'mega casinos' were built on reservations that rivaled Atlantic City and Vegas. In turn, Vegas built even more impressive casinos.
Atlantic City, in an attempt to make the city more appealing to the ‘big whale’ millionaire and billionaire gamblers, and in effort to move away from its ‘seedy’ reputation, built the luxurious Borgata casino in 2003. Harrah’s created a billion dollar extension and other casinos in the area went through serious renovations and re-branded themselves.
It seemed as if the bite that the Native American casinos took out of AC and Vegas’ profits was negligible and that the dominance of those two cities in the world of gambling would remain unchallenged.
Then Macau, formally a colony of Portugal, was handed back to the Chinese in 1999. The gambling industry there had been operated under a government-issued monopoly license by Stanley Ho's Sociedade de Turismo e Diversões de Macau. The monopoly was ended in 2002 and several casino owners from Las Vegas attempted to enter the market.
Under the one country, two systems policy, the territory remained virtually unchanged aside from mega casinos popping up everywhere. All the rich ‘whales’ from the far east had no reason anymore to go to Las Vegas to spend their money.
Then came their biggest threat.
As revenue from dog and horse racing tracks around the United States dried up, government officials needed a way to bring back jobs and revitalize the surrounding communities. Slot machines in race tracks started in Iowa in 1994 but took off in 2006 when Pennsylvania introduced ‘Racinos’ in an effort to reduce property taxes for the state and to help depressed areas bounce back.
As of 2013, racinos are legal in ten states: Delaware, Louisiana, Maine, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, and West Virginia
Tracks like Delaware Park and West Virginia's Mountaineer Park, once considered places where local degenerates bet on broken-down nags in claiming races, are now among the wealthiest tracks around, with the best races.
The famous Aqueduct race track in Queens, NY, once facing an uncertain future, now possesses the most profitable casino in the United States.
From June 2012 to June 2013, Aqueduct matched a quarter of Atlantic City's total gaming revenue from its dozen casinos: $729.2 million compared with A.C.'s $2.9 billion. It has taken an estimated 15 percent hit on New Jersey casino revenue and climbing.
And it isn't just Aqueduct that's taking business away from them. Atlantic City's closest major city, Philadelphia, only 35-40 minutes away, and one of the largest cities in America, now has a casino that has contributed heavily to the decline in gamers visiting the area.
The situation in Vegas isn't much better. The Great Recession of the late 2000s hit Las Vegas hard. As the recession wore on, and as gambling received approval in various jurisdictions throughout the United States, folks realized they didn't need to travel thousands of miles just to gamble.
Casino revenues and the price of real estate plummeted. Unemployment went as high as 14 percent, however unofficially, local officials said it may have been as high as 30 percent.
More than half of all home owners with a mortgage in the state of Nevada owe more than their homes are worth.
One local bought his condo in 2006 for $209,000, and as of 2013 it is worth barely $60,000.
As Las Vegas moved to market itself as purely an entertainment paradise, one local said “The reality is, people just won’t fly to the middle of a desert to play some slots, watch shows and sit down for some blackjack when they can drive right near their town or city, or play legally online.”
And now it looks like the feds may soon allow online gambling across the United States.
Last May, the American Gaming Association called on Congress to enact federal legislation that would allow states to license and regulate online poker so Americans who play can do so safely using responsible, law-abiding operators. The Department of Justice made a decision that the Federal Wire Act only prohibits the transmission of communications relative to bets or wagers on sporting events or contests. It also clarifies that intrastate lottery tickets sold online are legal, so long as the lottery games do not involve sport wagering, even if the transmission crosses state lines.
Officials say this has opened up the possibility that online gambling may get approved on a federal level.
New Jersey is the third state in the U.S. to have authorized internet gambling. However, these online casinos are owned and controlled by Atlantic City casinos in an effort to boost profits in the face of fierce competition.
California, Hawaii, Illinois, Iowa, Massachusetts, Mississippi, Pennsylvania and Texas are hoping to join Delaware, Nevada, New Jersey and the U.S. Virgin Islands in offering online gambling to their residents.
Nevada also enacted modifications to their internet gambling law to allow for interstate compacts, among other provisions in hopes to draw higher stakes jackpots, similar to the Mega Millions and Power Ball lottery games that are played in multiple states.
With this in mind, it seems the niche that Las Vegas and Atlantic City once offered as a gambling and entertainment hub is heading toward the dustbin of history.
Time will tell if these two cities will end up like Detroit. However, the fact that they are losing their biggest industries to major competition, much like Detroit did, with depressed housing, casinos bankrupting/closing and businesses fleeing, makes their fate seem eerily similar.
I’m looking at Chicago for a big city to fall but there are a lot of smaller cities ready to tumble.
I can’t remember which but either Mobile Alabama or Jackson Mississippi recently elected a black nationalist mayor and promptly hired one of Detroit’s famed black nationalists. (Kwame Kenyatta) I’d say that city is gonna go down fast.
It certainly is the most deserving.
I love Deadwood too. I have a friend who’s family own Saloon # 10. The casino I like is the Midnight Star
South Jersey is filled with retirement villages. The buses run all day back and forth to Atlantic City. I know from experience....my mother was one of those people on the bus. The city is a ghetto and don’t wander too far off the Boardwalk.
In the middle of a desert, there is no reason to make Las Vegas survive if it can’t do it itself. Gambling is the only reason it grew, and without that reason it’s a huge waste of energy and resources.
Unless they come up with something innovative that requires thousands of workers to make it go, Las Vegas’ days are numbered.
A new casino opened in Cincinnati. There are 2 more just a few miles away in Indiana and 2 race tracks are also within miles. My sense is that this area is now saturated. Why would they go elsewhere? It would be like visiting Vegas to go to a shopping mall.
The ultimate death knell for gambling as we know it is for voters to insist they’re adults and can play cards at home or at their local bar if they feel like it. IOW, TRUE legalized gambling....not the kind that makes a few well-heeled individuals richer and dumps dollars in state tax coffers.
Idiotic article because its entire theme is that “people don’t have to travel to Vegas.”
...except, the article doesn’t mention that Vegas tourism has increased from 32 Million in 2009 to 39 million tourists in 2013.
So much for the entire premise of the “article.”
Journalism for the lower half.
After we got Iphones, she started play free slots on the phone. Now, mother-in-law is playing, too, & no talk of going to the casinos.
The Iphone paid for itself in a couple of months of no casino trips.
I thought I was the only one. Probably it's all the racket and flashing lights -- can only take so much of that.
Jackson, Miss. Already pretty seedy.
IMO it was better when gambling was limited to AC and Las Vegas. You’d get better deals and everything was ‘special’. Now gambling is just a big form of the worst kind of tax. There’s not much fun in the indian casinos, especially on their 25% payout slots or whatever they want them to be.
At least when LV/AC had their advantage you could feel it in the air. Only been to AC once when I was a kid, but it wasn’t that awful. I could see maybe someplace like Shreveport being open too.
But putting casinos all over the place just takes the fun out of it and really makes the country a worse place overall. I’m pretty sure that expanded gambling in the last few decades hasn’t really made this country any better. Neither will more legalized and government involved drugs or prostitution. Downward spirals for all except the few casino owners and the politicians they pay off.
All I know is that the Las Vegas Club, downtown, is looking more and more like the Lucky 38.
“On the other hand, Atlantic City, once a major vacation spot during the roaring 20s and 1930s, as seen on HBOs Boardwalk Empire, collapsed when cheap air fare became the norm and people had no reason to head to the many beach town resorts on the East Coast.”
That implies that MOST east coast beach going folks who had always gone to east coast beeches, abandoned those beaches for airline trips (expensive then) to other states, MOST did not, so the premise that the growth of the airline industry caused the decline in Atlantic City and other east coast beaches seems nonsense to me.
MOST people who live near east coast beeches did not and do not rush to the airlines to get away to the beaches in other states, as part of their regular summer fair. Some do and most who do do so for certain occasions and not in general.
There were many factors in Atlantic City’s decline. I do not that travel by airlines was one of them.
I’ll sit at a neighborhood poker game once in a blue moon but I’ve never dropped a dime in a casino. No interest.
WELCOME TO VEGAS, MAKE YOU STAY A PEACEFUL ONE.
Yep, they are going to be needing those guys too to keep order.
I’ve been to a casino once in my life here in Michigan. I took $20 in and locked the rest in the car.
I was back on the road 20 minutes later.
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