This week, MGM Resorts International and Caesars Entertainment, two leading giants in the industry, have revealed their joint plans to construct a casino in Atlantic City, United States. While no official announcement has been made through company channels, the CEOs of both organizations recently held a meeting with the governor of New Jersey, the state where Atlantic City is situated, to discuss potential partnerships, legislative changes, and the exciting new casino project. The governor expressed enthusiasm and a willingness to support this proposal, sparking anticipation in the industry and among local stakeholders.
Crisis in the region
Since the relaxation of gambling regulations in neighboring states of New Jersey, Atlantic City, which was once the sole area where gambling was regulated and housed prominent casinos, has experienced the closure of four establishments. The most recent closure was the Trump Taj Mahal, a casino opened by current President of the United States, Donald Trump, in 1990, but closed by its last owner. This closure has significantly impacted Atlantic City's appeal and economy.
Therefore, it is no surprise that Governor Chris Christie is eager to attract the new MGM-Caesars operation, considering the decline in revenue and increased unemployment caused by the departure of the casino and gambling industry. In addition to this, another consortium of casinos, including the renowned Hard Rock International, owners of the famous Hard Rock Cafe, are also planning to invest in the city. The consortium has purchased the recently closed Trump Taj Mahal and intends to invest over $300 million in renovations.
While the casinos alone may not resolve the issues of Atlantic City, they will undoubtedly play a crucial role in revitalizing the region's economy. It is undeniable that the casinos will make a significant contribution towards the region's economic recovery, although they may not be the sole solution to Atlantic City's problems.
MGM and Caesars in Atlantic City
In addition to the newly announced collaborative venture, both the colossal MGM and Caesars Entertainment already have established operations in Atlantic City. Atlantic City is already home to thriving establishments from both MGM and Caesars Entertainment, who have now come together for an exciting new project.
Founded in 1987, MGM is a renowned company that operates some of the most iconic casinos in Las Vegas, including Mirage, MGM Grand, and Bellagio (also recognized as the casino featured in "Ocean's Eleven"). Among its impressive portfolio, MGM also runs Atlantic City's most profitable casino, Borgata.
Caesars Entertainment is renowned for its operation of various casinos, including the prestigious and widely recognized Caesars Palace, which immerses visitors in the ancient Roman theme. Across the bustling city of Atlantic City, the company manages and oversees the operations of the iconic Caesars Atlantic, as well as the well-regarded establishments Harrah’s and Bailey’s.
In recent years, the casino revenue in the area has experienced a substantial growth of approximately 30%. The local businesses credit this success to the government's efforts in enhancing the region. It appears that Governor Chris Christie has established a favorable relationship with the industry as well.
During his meeting with MGM Grand's CEO, James Murren, the governor declared his intention to "implement amendments to the legislation, aiming to bring it up to speed for the 21st century." The casinos also recognize the necessity of this update, yet emphasize their commitment to working alongside their peers at Caesars to explore avenues for further enhancing Atlantic City. "It won't be a simple task, but we embrace the challenge," James Murren affirmed.
