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Casino News:

  Excessive expansion of casinos may prove harmful

ATLANTIC CITY, N.J. -
While the casino industry has expanded at a greater speed in the Northeast, the casino analysts differ on the issue whether the expansion has crossed the limits or more casinos need to come into being. However, most of them are of the view that the casino business in the Northeast has tightened. Mr. David Cordish, while expressing concern over the issue commented that it is just not appropriate to have one casino on every corner. Next month, Mr. Cordish’s company would be starting a big casino in Maryland. He added that further expansion of the casinos should be reviewed. In fact, the politicians consider the casinos like Starbucks and a good source of free money, said Mr. Cordish. Such approach on their part is not praiseworthy, he added.
Cordish emphasized the need for an assessment for the casino expansion. He added that very soon four largest casinos would be operating within a small area in the Washington, D.C., region. If too many mega-casinos operate close to each other, the situation worsens.
Some representatives at the annual East Coast Gaming Congress also expressed dissatisfaction over unwanted expansion of casinos in the Atlantic City. They were of the view that the city could be relieved with closure of some gambling units. Mr. Gary Loveman, president of Caesars Entertainment also opposed the abundance of casinos in the city and said that many properties were on sale but with no buyers. Andrew Zarnett, managing director of Deutsche Bank Securities, during a panel of Wall Street experts went to the extent by saying that Revel Casino could prove harmful to the Atlantic City’s casino industry instead of making any improvement. He was of the view that when the supply exceeds the demand, everybody loses.


   2012-05-19






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