So, casinos in neighboring states simply cut off the flow of customers to Atlantic City since there was nothing in Atlantic City outside of the four walls of the casinos to justify the trip. Other than Las Vegas (which is unique), gamblers will visit the nearest available option. Any obstacle placed between them and a gambling opportunity will make it less likely that they will go to a particular casino. These gamblers are creatures of convenience.
Atlantic City became a day tripper grind market comprised of middle market gamblers – those who bet relatively small amounts of money on a regular basis. Without competition, Atlantic City could get by without building any infrastructure or other destination attractions because gamblers had no alternative. By 2014, that number had decreased to $2.7 billion.
Prior to competition from Delaware, New York, and most notably Pennsylvania, the Atlantic City market reached a high point in 2006 with gaming revenue of $5.2 billion. Simply, there were too many casinos, not enough customers. The failure of Revel Casino is in many ways the failure of Atlantic City.
