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Penn State Gambing Laws Could Damage Casinos in Atlantic City

Pennsylvania’s recent legalization of table games could have a negative impact on the revenues of struggling casinos in neighbouring Atlantic City, a study by Moody’s Investor Services warned last Friday.

Table games are responsible for an annual turnover of around $1 billion in Atlantic City – around 30% of the area’s total gaming revenue – and some of this money may well find its way into Pennsylvania, the agency has claimed.

Though detrimental to Atlantic City’s casino industry, the news will come as a welcome boon to Pennsylvania, who only last week completed a passage to legalize games such as poker and blackjack in a bid to balance the state’s budget.

“This represents a large potential market for Pennsylvania, particularly for casinos located in the eastern part of the state and in relatively easy driving distance to Atlantic City,” Moody’s Investor Services’ analyst Keith Foley.

Pennsylvania is hoping that the recent decision to legalize table games in the state will help them generate additional annual revenue of around $250 million, but their gain will almost certainly be New Jersey’s loss as casino revenues continue to slump.

Having seen the money spent on gaming steadily fall for the past three years due to a drop in consumer spending and the opening of new slot parlours in nearby states, the latest data collected by Moody’s Investor Services looks set to add to the area’s woes.

“These companies – already suffering from weak gaming demand and increased competition from slots in Pennsylvania – are bound to see further declines in gaming revenues owing to the new table game legislation,” confirmed Foley.