It is natural that when you notice that certain businesses are becoming quite popular in an specific area you get the feeling that if you were to open up the same thing yours would be much better and even more profitable. However, when the number of look-alike businesses increases so rapidly the success of each and every one of them becomes doubtful, as in one area there might not be space for so much competition. Does all of this remind you of any place in the world? No?! What about Atlantic City and its 12 casinos?
Lots of opinions arise that dozen is way too much for this city that loves to gamble and the outlooks are not lacking reasonable background. All these bring us to one question: “will the 12 Atlantic city casinos survive?” Unfortunately, almost everyone has come to a conclusion that some of the casinos should be shut down in order for others to survive but then the question is how many of them?
The fact that the revenues are declining dramatically in the last 6 years may be used as yet another insinuations that the number of the casinos in the Atlantic City by far exceeds the necessary one.
What Has Happened?
1978, was the year when the first casino opened up in the Atlantic City, right after passing a ballot referendum. And right away, numerous gambling places followed up; all of them had extremely large profit and this of course attracted plenty of investors. Seeing this, surrounding areas noticed that gambling business is actually something to consider and as a result competition hit the Atlantic City from all sides including Pennsylvania, New York, Delaware and Connecticut.
All this has lead the Atlantic City to its drastic fall of total gaming revenue, that is 40% less than it was on its peak of success.
The Secret of Success of the Atlantic City
The key of success of every casino in the Atlantic City was that the competition was no less than miles away. Nowadays, this is no more the case and there is practically no chance of growing revenue if the competition does not decrease.
In a conclusion, it is hardly possible that in this situation all 12 casinos of the Atlantic City will survive. It is impossible for all of them to coexist if nothing changes. Eventually some of them will be pushed out of the way according to “natural selection”.