Update June 30 at 3:03 PM: About an hour after writing this article Moody’s Investor Service coincidently lowered its outlook for the US gaming industry to negative due to ‘declines in comparable monthly gaming revenue for most states and jurisdictions that allow gambling’!
Does the fact that some of the biggest hotel names in Atlantic City casino gambling are shutting down bode particularly well for the casinos that are planned for Upstate New York?
Will gamblers and vacationers willingly and en masse flock to a getaway in the depressed Catskill Mountains region of New York State as an alternative to day-trips and long weekends in the depressed beachfront community of Atlantic City?
On the surface it seems very much like a swap of one bad location for another but the developers who plan on renovating the Nevele Hotel in Ellenville, NY certainly hope that if they build it, the people will come and then go home and tell their friends who will also come.
Sounds like a big gamble, even for the purveyors of casino gambling, particularly in light of the story today that some casino hotels in AC are likely closing due to a plunge in revenues caused in part by the competition coming from Pennsylvania and from online gambling.
‘For years, economists and analysts talked in theoretical terms about “casino saturation” in the northeastern United States. But there’s nothing theoretical about what’s happening in Atlantic City now.
The Atlantic Club is dead, taken down by two rivals. Revel says it will close if a buyer can’t be found, and Caesars Entertainment, which says there are too many casinos in New Jersey, plans to shutter one of its four, the Showboat, on Aug. 31.
Mayor Don Guardian, who could see a quarter of his city’s casinos close during his first year in office, said Atlantic City is in the midst of a difficult but necessary makeover from being a gambling resort to a multi-faceted destination where betting is only part of the allure.
“Although it is sad today, it’s part of the transition that Atlantic City needs to have,” he said Friday, hours after the Showboat shutdown was announced. “There is pain as we go through this transition, but it’s critical for Atlantic City to realize we are no longer the monopoly of gaming on the East Coast. If you build more and more casinos and don’t increase the amount of people coming to them, you’re sharing that wealth. We’re just going through a very difficult time.
“ Since 2006, Atlantic City’s casino revenue has plunged from a high of $5.2 billion to $2.86 billion last year. It has been beset by competition from Pennsylvania, which has surpassed it as the nation’s No. 2 casino market after Nevada, and suffered further losses with additional casinos coming online in New York and Maryland…’ (Newsday)
In any event back in the middle of June we wrote an article on the proposed redevelopment of the Nevele Hotel in the Catskill Mountains of New York State that would include casino gambling along with many other upgrades and amenities! These amenities would include:
- A world-class casino, complete with a poker room, reel and video poker and table games that include everything from blackjack to craps to roulette, baccarat and pai gow poker
- 446 luxury guest rooms and suites, many with picturesque views of the mountains
- Luxury spa facility with steam and sauna rooms and a solarium, as well as a fully-equipped fitness center
- Premier restaurants and dining options, including a steakhouse grill, noodle bar, Las-Vegas style buffet and a food hall featuring Hudson Valley wines, farm-to-table and locally-sourced, organic foods
- Rooftop pool with spectacular, wrap-around views of the Shawangunk Mountains and sloping hills of the surrounding countryside
- A redesigned 18-hole, 7,333 yard, par 71, championship golf course
- Downhill ski, snowboard and sled trails and forested cross-country ski trails with a year-round chairlift that will give visitors a panoramic view of the nearby farmlands and cascading mountains
- Iconic ice arena and two-story ski chalet restored for visitors of all ages and abilities to enjoy
- Five miles of scenic hiking and biking trails recreated along an old railroad corridor
- Additional recreation facilities, including an equestrian facility and trails, eight tennis courts and summer zip lines
So if the renovation is done and casino gambling is part of the mix will it be a success? If I was a gambling man I’d put the odds at 50/50!Google+