Atlantic City history is currently being rewritten. Unfortunately, it’s a chapter that many would like to forget as soon as possible.
Little did we know that when 2020 began, a global pandemic would nearly completely shut down the city’s tourism industry.
All nine Atlantic City casinos turned off their lights on March 16, and Governor Phil Murphy has yet to announce a reopening date.
No matter how we spin it, this current year will likely be remembered as the longest closure in Atlantic City’s history.
And the sad part is that the industry was gaining momentum and growing rapidly. New additions, establishments, new ideas… all were becoming part of the fabric of New Jersey’s gambling history.
The coronavirus pandemic deflated the 21-month winning streak.
So when the casino doors finally swing open again, how long will it take for Atlantic City to recover? It’s a difficult question to answer without knowing what restrictions will be in place or how long those restrictions will last.
Call it the latest and most challenging chapter in the Atlantic City gambling saga.
Let’s take a look back at some of the other obstacles the industry has overcome.
Atlantic Town from the viewpoint of a in long run resident
Mark Giannantonio is someone who has had a front-row seat to all of Atlantic City’s ups and downs.
He has fond memories of growing up in the Ducktown neighborhood of Atlantic City. He described the pre-casino days as a “great time” and said it was a “great place to grow up.”
Giannantonio remembers the times when Resorts and Caesars opened in the late 1970s and 1979, respectively. Customers lined up along the wooden walkway, eager to enter.
Although he was not old enough to legally gamble at the time, Giannantonio had an up-close view of Resorts by working as a room service waiter.
“It was a different era. Resorts was the first casino outside of Nevada, so the business was just incredible. As you can imagine, customers from every state were coming into Atlantic City to gamble, especially in the Northeast.”
And here we are, more than 40 years later. Giannantonio is now the president and CEO of Atlantic City’s oldest casino, Resorts.
Resorts, along with nine other properties, is still operating after a series of sometimes remarkable, sometimes turbulent years.
Ahead of the rise regarding Resorts, Caesars and Bally’ s
How did Atlantic City become the Northeast’s gambling mecca?
Well, before Resorts opened its doors in 1978, this town had its share of tumultuous times (similar to what we’ve seen with casino revenues over the past few decades).
Author and historian Nelson Johnson shared some insights into what the city was like before the rise of casinos. He wrote “Boardwalk Empire: The Birth, High Times, and Corruption of Atlantic City.” This book served as the source material for the HBO hit drama “Boardwalk Empire.” The show revolved around the character of politician Enoch “Nucky” Thompson, a fictionalized version of Enoch “Nucky” Johnson (no relation to the author). The time period of “Boardwalk Empire” spans from 1854 to 1976.
Author Johnson touched on the challenging times.
Undoubtedly, he said, the Great Depression greatly affected Atlantic City. And things didn’t get much better after World War II. He said AC “struggled through the ’50s terribly.”
“[AC] started losing people and losing visitors. Then in the ’60s, it was just a disaster in terms of the number of people leaving town and the number of people not coming to vacation.”
A resort town that fails to attract visitors needs a solution. Enter legalized casino gambling (New Jersey was the first state to offer it outside of Nevada).
However, turning the idea into reality took time.
The first referendum went to a public vote in 1974 but didn’t pass in 19 of the 21 counties. The legislation didn’t specify that the gambling halls would be located in AC.
The second referendum, which passed in 1976, included the Atlantic City restriction.
And the rest is history.
Pleasant gamblers during Resorts Gambling house
Resorts was the first of its kind. Back then, creating a casino-hotel property didn’t require borrowing billions.
The developers utilized former Chalfont and Haddon Hall, which were previously used as Quaker rooming houses. Besides the lower cost, it eliminated a long and drawn-out construction timeline.
On May 26, 1978, at 10 a.m., Resorts International welcomed the first gamblers in Atlantic City history (more were lined up on the Boardwalk). The original casino floor was 33,735 square feet, with 84 table games and 893 slot machines.
Then-New Jersey Gov. Brendan Byrne was there for the ribbon-cutting ceremony. Entertainer Steve Lawrence did the ceremonial first roll of the dice (similar to the first bet at a sportsbook).
On that day, Byrne gave Atlantic City its new calling, as recorded in the Press of Atlantic City archives:
“I think the message to Atlantic City is to take the momentum that exists this morning and maintain it. … It’s a new lease on life. I’m satisfied we have the human resources. We’re going to meet that challenge. A great deal will depend on what we do on the local level and at the state level to keep the excitement.”
It didn’t take long to see the high demand for East Coast casino gambling.
“The excitement was massive because it was the only place in the country besides Vegas where gambling was legal,” said Johnson. “You’ve got this huge population in the northeast corridor where you’ve got a lot of people who are gambling illegally and many more who would like to gamble legally.”
He noted that even when it was raining, people would still stand in lines on the Boardwalk to get inside.
Resorts went through its share of ownership changes over the years and at one point was even in danger of closing.
While others have failed to survive, this property still stands 42 years later. The current Resorts casino floor exceeds 80,000 square feet, with over 1,500 slot machines.
Ocean City internet casinos that never ever got off the floor
Of course, we cannot ignore the countless casino projects that never got built. Many of these concepts included renderings.
What seemed like great ideas on paper didn’t pan out for one reason or another. Instead of highlighting each abandoned project, here are five of the bigger ones:
Of course, we cannot ignore the countless casino projects that never got built. Many of these concepts included renderings.
What seemed like great ideas on paper didn’t pan out for one reason or another. Instead of highlighting each abandoned project, here are five of the bigger ones:
- Le Jardin
Remember when Steve Wynn was talking about making a grand comeback to AC with this French-themed project? He was the mastermind behind the original Golden Nugget.
Le Jardin dates back to the Mirage Resorts days (prior to the MGM takeover). The controversial AC Connector was built to pave the way for the project.
Although the project never came to fruition, the space didn’t go to waste. The MGM-owned and market-leading Borgata Atlantic City now calls it home.
- MGM Grand Atlantic City
MGM may not have the same presence on the Jersey Shore that it has on the Las Vegas Strip.
The MGM Grand Atlantic City proposed project was going to be developed on the vacant lot between Borgata and Harrah’s. Back in 2007, the company announced plans for a big Atlantic City resort with a price tag in the $4.5-$5 billion range. It included three hotel towers.
Several years later, the lot is still empty.
- Hard Rock Atlantic City
Hard Rock International made its highly anticipated Atlantic City entrance in 2018. But before purchasing and rebranding the former Trump Taj Mahal, Hard Rock had other AC plans.
At one point, there was talk of building a boutique hotel-casino on the opposite end of the Boardwalk.
- Penn National
Believe it or not, the Pennsylvania-based company has never developed or owned an Atlantic City casino. At one time in 2008, it considered acquiring Bader Field for potential casino development.
The deal never went through. The former airport sits unused, still waiting for that next big idea.
- Pinnacle Atlantic City
Do you recall the 2007 implosion of the Sands Atlantic City? The still-vacant property is located just steps away from Bally’s and the Boardwalk.
This grand vision, complete with fireworks and music, set the stage for the proposed $1.5 billion resort called Pinnacle Atlantic City. “Proposed” is the keyword, though, as the Las Vegas-based company pulled out of the project in 2010.
The Sands of a bad decision
Some of these failed projects could have helped transform AC into more of a year-round destination.
However, out of all the projects mentioned above, Johnson, without a doubt, singled out demolishing the Sands as “a really good example of just stupidity in plain thoughts.”
You see, besides the former Sands, the historic post office at Pacific Avenue and Dr. Martin Luther King Jr. Boulevard was knocked down at a later date.
According to Johnson, the would-be developer wanted “to create a better right of way for the new casino that never got built.”
“The post office building was a marvelous building. And Stockton [University] had told the CRDA [Casino Reinvestment Development Authority], ‘Hey, we want to use that building and turn it into a museum.’ And CRDA knocked it down because they felt they needed to protect this developer that never came to be.”
A decade later, the vacant Sands property (sandwiched between Bally’s and The Claridge) remains a barren lot. It stands as a reminder of what was and what could have been.
Atlantic City: From boom to bust
Ironically, prior to Pinnacle pulling out of the project, Atlantic City casinos were recording their best numbers ever. In 2006, the same year the Sands closed, casino revenue reached an all-time high of $5.2 billion.
All of it came from slots and table games. There were no online casinos, no legal sportsbooks, just a dozen casinos in their heyday.
And 2006 was the same year as the state-mandated three-day shutdown due to the budget not being passed. Of course, the golden years of Atlantic City were short-lived due to the Great Recession that began in the latter part of 2007.
But an even bigger problem was looming. Atlantic City was about to lose its East Coast casino gambling monopoly.
Mohegan Sun at Pocono Downs opened its casino floor in November 2006. But this was just the start, as the main Pennsylvania feeder market was busy getting gaming halls operational as well.
Sands Bethlehem and Parx Casino opened in 2009.
SugarHouse followed in September 2010.
Valley Forge Casino Resort opened in 2012.
Today, Pennsylvania is home to 10 casinos, with a 13th under construction.
Plus, other feeder markets, such as New York, Massachusetts, and Maryland, now have legal gambling.
2014: A really bad year for Atlantic City
The competition from neighboring states was just the tip of the iceberg. Atlantic City, the once-booming casino town, suddenly found itself fighting for survival in 2014.
That year, the 12-casino market shrank to six. Trump Plaza, The Atlantic Club, Showboat, and the massive north-end property called Revel all closed.
The latter property (which reopened in 2018 as Ocean Casino Resort) will likely forever be remembered as the biggest
bust in Atlantic City history.
The project came with a $2.4 billion price tag and barely made it two years. It opened on April 2, 2012, and closed on September 2, 2014.
Looking back, when AC experienced several good years, the plans were there to create something much more grand. All the unbuilt properties, the ideas, the attempts to keep Atlantic City relevant… they were all there.
Johnson calls it missed opportunities.
“Things that should’ve been built weren’t built, and things that shouldn’t have been built were built. It’s a crazy kind of thing,” he said.
He adds that the AC casino industry is doing slightly better, but “there’s still a long way to go.”
“Here we are, talking 40 years after the approval of casino gambling, and sections of this town that look like gambling never even happened. That’s really a sad thing. The story should’ve never turned out this way. There should’ve been more positive development in the community than there has been.”
It’s not perfect yet. While the industry is looking at better revenue days and casinos have enjoyed months of on-and-off progress (before the pandemic), the physical properties themselves are still in flux.
And with 2014 in the record books, the industry has continued to evolve.
Atlantic City and a new era of gambling
Atlantic City is in the process of redefining its image. What was once strictly a brick-and-mortar business has now expanded to mobile devices and browsers.
Online gambling platforms are a significant part of the evolution. The industry is itself a billion-dollar revenue generator for the state. While casinos were closed during the COVID-19 pandemic, online gambling revenue surged in New Jersey to $80 million in April.
Another big part of the evolution is sports betting, which not only is garnering attention as a new online product but also is bringing in additional dollars (and foot traffic) to the land-based casino partners.
And on the land-based side, the 2018 additions of Hard Rock and Ocean Casino Resort haven’t pushed any of their competitors out of business — yet.
What was once a gambling-centric town with regular appearances by Frank Sinatra and Tony Bennett continues to evolve into something different.
Giannantonio continues to see it happen firsthand and remains optimistic.
“The reality today is there are a lot more properties (and) gaming is all over the country, so to come and enjoy a few days at a gaming establishment is completely different. There are plenty of full-size resorts around the country, even in Atlantic City,” he said.
“The market really has evolved from being primarily gaming-centric to gaming and nongaming. There are so many more nongaming amenities.”
The road back for Atlantic City casinos is a challenge unlike any that New Jersey has ever faced before.
Will it still generate $2-$3 billion annually post-pandemic? Perhaps. But even when the properties do reopen, they won’t be operating at full capacity.
Sure, the city may not have realized those grand visions from three and four decades ago. And 2020 probably won’t be the great year many had hoped for.
But at the same time, it’s hard to ignore the fact that this is still a thriving industry. And it all depends out of one small resort town.
Bill Gelman has been reporting on the New Jersey gambling industry since 2018, around the time when the Garden State launched sports betting. Bill transitioned from being a live writer for PlayNJ and NJ Gambling Sites to his current role as managing editor in 2020. In addition to providing in-depth analysis on New Jersey gambling industry trends and news, Bill regularly sits down with Atlantic City casino industry executives to offer readers exclusive interviews and comprehensive coverage. Bill holds a bachelor’s degree in writing from Ithaca College. He has contributed to various Catena Media sites, including Lines, Legal Sports Report, PlayPennsylvania, and PlayCanada.
