Casinos operating in Atlantic City might in the near future face enhanced competition from the operations in Downstate New York. In a recent announcement, the governor of New Jersey, Phil Murphy revealed that his administration had set aside $60 million which will be used to directly fund the cleanliness and safety aspects of the city over the next few years. Courtesy of this dedicated budget, the Mayor of Atlantic City is planning to use $5 million to finance the installation of a citywide security camera system.
When Gov. Murphy was speaking at the press conference last week in AC, he reported that $16.8 million of last year’s budget was still unused. This money has since been repurposed for the establishment of the East Coast’s premiere resort city. Murphy has been involved in the growth of the New Jersey gambling market since 2018 and he will not leave any opportunity for further growth to pass by.
With such huge investments being made in the city, one could easily pass the region as a safe gambling haven. The truth is that America’s Playground is known broader perspective as one of the most dangerous cities in the country. Even though there are published data to indicate that Atlantic City and New York are comparable in their security standing, perceptions linger on for a long time.
Meanwhile, the New York gambling market is continuing to expand at a very high rate. The current plans involve the addition of three brand new licenses for retail casinos that will be authorized to conduct sports betting in and around the Big Apple.
According to a press release published a week ago, Murphy is quoted to have said that the coming years require a change in strategy from casino operators in New Jersey. New York operators are obviously putting in measures to pull in bettors from neighboring NJ. With more casinos being set up in NY, the competition will only get stiff. Improving the appearance and safety status in NJ will enhance player confidence and hopefully improve business for AC operators.
Small says that the installation of a citywide security camera system is long overdue and it will have many benefits to the city. For a start, it has been established that the installation of any surveillance camera system reduces the rate of crime by a whopping 76%. This translates into a reduced security budget for the city and hence better service provision for the residents. For this system to work as envisioned, every street in the city will be put under watch.
Criminals obviously prefer to operate under the cover of being unknown so the thought that their activities and identities will be captured will greatly deter their intentions. For those who will be caught on camera jeopardizing the city’s efforts to enhance its reputation, proving their actions at a court of law will be straightforward and this will also streamline the justice system as far as street crime is concerned.
Based on a report that was published by the American Gaming Association (AGA) regarding the performance of Atlantic City Casinos, the total gross gaming revenue collected in 2021 was $4.74 billion. On the side of the border in New York, 31 retail casinos collectively raked in $3.64 billion. This is a clear indication that the 9 AC casino giants of the Garden State have by a large margin outpaced 31 casino operators in New York. For now, the largest setback for the NY market is that the state is yet to legalize online betting. Until this position is overturned by way of legislative action, New Jersey online casino gambling will continue to fare way better than that of the Empire State.
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Crime statistics Vs. Perception
If you have heard anything about Atlantic City, it is probably of the fact that it is one of the most dangerous cities in the United States. This perception is backed by a report by the NeighborhoodScout.com which states that 1 out of every 125 people has fallen victim to violent crime in the resort city. NeighborhoodScout.com also reveals that New York is also not safe – 1 out of every 172 people will be victims of a violent crime in the state.
Nevertheless, Murphy is optimistic that the cleanup of Atlantic City will go a long way in improving its reputation. New Jersey will support the process by pumping in finances and offering whatever help they can for the city to enhance its competitive edge in the region.
After the operations of the 2023 financial year, it was reported that the city had been allocated $43 million from direct funding. This is excluding the amount of $16.8 million which had been mentioned the previous Monday. Murphy explains that the funding to Atlantic City is because the city is on the list of communities that have been shortlisted for an upgrade in New Jersey. This is great news for the city considering that they worked with an annual budget of $235 million before the new allocations were made public.
In 2018, a superior court judge ruled that the state of NJ had violated a consent agreement between the state government and the Atlantic City authorities. This is after the state administration made amendments to the rules that governed PILOT payments. According to stats analysis, if the PILOT laws are not appealed, casinos operating in Atlantic City will end up paying approximately $40 million less as PILOT payments for 2022.
Conclusion
It is often said that heavy investment results in heavy profits and this is particularly true in the service industry. Security is without a doubt an important aspect of any business; both workers and customers want to be assured of their safety in and outside the casino premises. Even though the focus right now is on the direct benefits that gambling establishments will get from the new security camera installation, the entire community will be a safer place to live and thrive in.
