Atlantic City Casino
KWD : 20/412 = 4.85%
Atlantic City Casino
Atlantic City Casino was brought about by New Jersey’s battle for a deflating economy. Atlantic City was once called the pearl of East Coast. But in the 1970s, Atlantic City underwent economic depression. The unemployment problem was growing. So did crime rate. New Jersey government was looking frantically for a solution to Atlantic City’s problem. Casino gambling became a viable but unpopular option. In 1974, voters rejected the move to legalize casinos. But in 1976, it succeeded. The first Atlantic City Casino opened it doors to the public on May 26, 1978.
Atlantic City Casino has started to spur economic activity. They provided the much needed jobs, increase tourists influx and increase in tax revenues. Atlantic City Casino increased the number of tourists to the area and they money they can spend. Atlantic City Casino generates direct income which helps the tourism industry. At the same time, increases indirect tourist revenues brought about by increase in tourists to the area.
Forming the Atlantic City Casino however is not the end the New Jersey government has in mind. As a matter of fact Atlantic City Casino only serve as a means to achieve higher goals- goals which are deemed to benefit the economic needs of the people. Atlantic City Casino was subjected to government’s control for some time. But the regulations designed to put the Atlantic City Casino under control was conflicting. It somehow restricted the Atlantic City Casino to grow as policies were created that somehow did not meet goals. Despite the conflicting rules, Atlantic City Casino progressed for the first 13 years. Largely, because of the lack of competition considering its only competitor at that time is Nevada.
Atlantic City Casino generated over $4billion in federal, state and local taxes. Atlantic City Casino also created jobs for more than 49,000 persons and 66,000 ancillary jobs. Annual profits for Atlantic City Casino averaged at 66.5 million for the first ten years. But in 1988, more and more states are into legal gaming. Atlantic City Casino fell down to $26 million for the next five years. While other states that just entered the legal gaming arena experienced phenomenal growth. In 1990 and 1993, Atlantic City Casino had experienced net loss. In 1995, the New Jersey government began to review its regulations that somehow hampered the growth of the gaming industry in Atlantic City Casino. Atlantic City Casino was made more ‘investor-friendly’. And Atlantic City Casino once more experienced brisk business.