Yesterday morningÂ Trump Plaza closed its doors for the last time. Â Trump was already planning to close the Trump Plaza next week, but now the Taj Mahal is at risk of closing in November. Â This news in conjunction with the Revel closing earlier this month preceded by the Showboat casino closing leaves 7 casinos left open, if Taj Mahal closes in November.
I wrote a few years ago about the blight of Atlantic City and how surrounding states like Pennsylvania, Maryland and New York have reduce the amount of day trippers going to AC. Â Hurricane Sandy in 2012 did the Jersey Shore no favors and so here we are today. Â Seven casinos left without much hope, except…
Enter sports gambling! Â This is the last best hope for New Jersey gambling revenues and it is the bet (pardon the pun) that Governor Chris Christie is making. Â This was put to a vote a couple of years ago, and it passed. Â The federal government has blocked New Jersey’s efforts and the NCAA and professional sports leagues have joined in.
Governor Christie has had enough, the casinos are closing and consumer behavior is forcing his hand to ignore the federal government and allow race tracks and casinos to start taking sports bets immediately. Â Putting aside the legal issues, let’s assume this starts. Â Here is how New Jersey benefits:
- Sports gambling brings in huge handles for the casinos 25 weeks of the year. Â All 17 NFL regular season games, 4 playoff and Super Bowl weekends, 3 NCAA tournament weekends and Kentucky Derby weekend.
- The average annual handle (what the casinos earned) in Vegas for each NFL season since 1969 is $41.7M. Â This doesn’t include all the ancillary revenue they bring in from people just being in Vegas.
- Over 200MM people worldwide gamble online and of those people living in the US they do so illegally. Â Those people are making over $380B in bets each year.
Christie’s bet is a winner not just for the casinos but also for the bettors themselves. Â Instead of betting off shore with the fear that their money will be stuck overseas, Americans can now cash their tickets and pocket the money.
I’ve been going to Vegas for 15 years for the March Madness tournament and would love to give AC a try as soon as the books are open there.