The Mid-Atlantic Hot Streak
Posted: Feb. 3, 2010
By Keith Smith
President and CEO, Boyd Gaming Corporation
Chairman, American Gaming Association
Though the new year already is well underway, speculation remains rampant among commercial casino industry insiders and observers about gaming’s prospects in 2010. From my perspective, this will be a rebuilding year for our industry – one that is marked by both gradual growth and continued innovation.
Many eyes are trained on traditional gaming markets, particularly Las Vegas, for confirmation that our industry is recovering at a healthy pace. However, I believe that some of the most exciting developments are taking place elsewhere – in an emerging gaming region that will substantially impact the future success of the commercial casino industry.
For a long time, Atlantic City, a favorite resort destination along the East Coast, virtually dominated all gaming activities in the region. However, in recent years, a swath of states straddling the mid-Atlantic has become a hotbed of gaming activity. Delaware, Maryland, Pennsylvania and (just to the west) West Virginia all have expanded commercial gaming operations within their jurisdictions.
At the close of 2009, voters in Charles Town, W.V., approved a measure to install roulette wheels and craps tables alongside 5,000 slot machines. And, last month, Pennsylvania’s governor signed a bill that allows the state’s casinos to offer blackjack, poker, roulette and dice games to patrons. Likewise, Delaware legislators recently legalized table games at the state’s casinos, as well as parlay sports betting.
Nearby Ohio also is broadening its gaming operations. Last year marked the fifth time in two decades that gambling expansion was proposed by the state, and, after months of debate, voters approved the measure in November. Issue 3, an amendment to Ohio’s constitution that authorizes four casinos in the state’s largest cities – Cincinnati, Cleveland, Columbus and Toledo – passed with 53 percent of the vote.
Though policymakers continue to debate how the new law will be executed, Ohio, like its neighbors, will soon experience first-hand the positive benefits casinos can bring. If casino development plans proceed without additional delay, Ohioans will have access to approximately 40,000 much-needed new jobs within the next two to four years. Likewise, the tax revenue generated by the new casinos will help improve communities throughout the state.
Without question, Ohio’s new casinos will face fierce competition from mid-Atlantic gaming establishments, as well as those in other neighboring states in the Midwest. Ultimately, however, competition breeds innovation. Gaming establishments in Ohio and throughout the mid-Atlantic region will need to find ways to provide unique experiences that their patrons can’t access anywhere else.
And Atlantic City’s gaming operators – my own company included – will need to rise to the challenge created by this burgeoning gaming region. When we partnered with MGM MIRAGE to open the Borgata Hotel Casino and Spa in 2003, we ushered in a new paradigm for casino resorts in Atlantic City. Now, as new gaming establishments spring up in neighboring states and communities, the city must adopt a similarly forward-thinking approach in order to survive and thrive.
I have little doubt that Atlantic City will successfully adapt to the increasingly competitive environment. As an industry executive, and as the new chairman of the American Gaming Association (AGA), it will be very exciting to be a part of this evolution. As gaming operations expand in the mid-Atlantic and beyond, gambling’s reputation as a mainstream form of entertainment will continue to grow.
We have big plans at the AGA for 2010. The AGA will work to provide member companies with the tools they need to rebuild our industry in the aftermath of the economic recession. In addition, the AGA will continue to strengthen our industry’s voice on Capitol Hill throughout the coming year, ensuring that we have a place at the table as legislators deliberate the issues that matter most to us.
If the recent economic recession taught us one thing, it is that the future is far from certain. However, though 2010 may have some surprises in store for our industry, it seems that the road to recovery will not be too long.
