by Steve Norton
CEO, Norton Management

Is online gambling driving new business at Atlantic City casinos?

My comment:

Online gaming is good for Atlantic City, because our once monopoly market in North and Central New Jersey, now has casinos closer to them in Eastern Pennsylvania and slots at Yonkers and Aqueduct. Many of these NY residents are two hours or more from Atlantic City, but much closer to out of State gaming. At one time AC received over 14 million visitors, just on line run busses, started by Resorts International, mid-week days only, in November 1978, while we were still the only legal casino, outside Nevada.

We have now lost over 90 percent of these bus customers, which used to primarily come on 200 mid week days and nights, in the Fall, Winter and Spring. Considering that 98 percent of our original customer base, now have gaming much closer than AC; we are still attracting a lot of drive in business on weekends, holidays and the Summer months of July and August. Unfortunately this leaves us with few customers mid week, outside the 2 summer months; and we see tremendous mid-week room discounting of 80% to 90%; in addition to over 50% of annual room, food and beverage revenue being comped. AC needs new air service into AC International, that will allow us to attract more conventions and trade shows, that would primarily want rooms during the 200 nights, where AC accommodations are currently dying. It reminds me of the time we owned and operated the Chalfonte-Haddon Hall Hotel, from before the 1976 referendum, to our Resorts International opening on Memorial Day 1978.

Online Gaming would not be beneficial to most states, that have casinos in all parts of their states. Here I am referring to Pennsylvania, New York, the five riverboat states, Mississippi, Maryland and Nevada.

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Hopefully President Trump will take notice of comments by Sands CEO, Sheldon Adelson, who say's "NO" to Online Gaming. It currently does nothing for Delaware, and in New Jersey, the Industry likes it because it is the only way, mid week, to reach their previous monopoly market in North and Central New Jersey; that now have more convenient casinos in Eastern Pennsylvania and slots nearby at Yonkers and Aqueduct. But other states that are considering Online Gaming, like Pennsylvania and New York, have casinos in every corner of the State, where the Industry would be harmed; with Online Gaming providing a gaming option more convenient than a visit to an actual casino.

Sports Betting, on the other hand, would be an option that most casinos and their states would want at their casinos and race tracks; as the most logical way to combat illegal Sports wagering, provide fair player odds and find a new source of tax revenue for participating states. I realize some professional sports are still against Sports Betting; but the NFL have embraced and invested in Fantasy Sports, that are different; but is still a way to bet on sports, thru their players. Players on professional teams today, make too much money, to try and fix a game, like the Black Sox scandal 98 years ago; and Professional Baseball now seems on board with Sports Betting.

So, on behalf of the gaming industry, I hope that President Trump, if he wants to help casinos and racing, will use his persuasive efforts on behalf of Sports Betting, rather than Online Gaming.