In the last 3 months, however, Atlantic City got some great news. First, Revel Entertainment secured the remaining $1 billion in financing needed to finish their mega-resort to the north of the Showboat. Secondly, the Hard Rock group got approval to build a small-scale Hard Rock Hotel at the south end of the Atlantic City “strip” near the Hilton. The new law that allows casinos with 200 rooms to build is going to be a nice spark to that economy – properties like the 3-year old Chelsea Hotel will start to see some prosperity come summertime.

Once Revel opens in summer 2012, look for it to cannibalize some of the older casinos like Resorts and the Hilton. Once all of that garbage gets cleaned up and run out of the city, it’ll be a four-horse race but most (if not all) will be profitable again. And if NJ ever legalizes sports betting, watch out! That’s precisely the competitive advantage they need down in AC to fend off recent competition from the PA casinos.