With the closure of the recent Atlantic Club Casino Hotel, rumors of the bankrupt Revel being sold to Hard Rock, more than half of the mortgages in Las Vegas under water, casinos opening up all around the country and online gambling legislation underway in various states, it seems as if the reasons for the very existence of Atlantic City and Las Vegas are in serious jeopardy.
In Las Vegas alone, more than half of properties with mortgages are still underwater, or worth less than the loans against them, according to Zillow Inc., a real estate data firm.
Trendy hotels like SLS Las Vegas are set to open in 2014, in an effort to reinvent the city as purely an entertainment paradise.
One local said “The reality is, people just won’t fly to the middle of a desert to play some slots, watch shows and sit down for some blackjack when they can drive right near their town or city, or play legally online.”
And now it looks like the feds may soon allow online gambling across the United States.
Last May, the American Gaming Association called on Congress to enact federal legislation that would allow states to license and regulate online poker so Americans who play can do so safely using responsible, law-abiding operators.
The Department of Justice made a decision that the Federal Wire Act only prohibits the transmission of communications relative to bets or wagers on sporting events or contests. It also clarifies that intrastate lottery tickets sold online are legal, so long as the lottery games do not involve sport wagering, even if the transmission crosses state lines.
Officials say this has opened up the possibility that online gambling may get approved on a federal level.
New Jersey is the third state in the U.S. to have authorized internet gambling. However, these online casinos are owned and controlled by Atlantic City casinos in an effort to boost profits in the face of fierce competition. Read more >>