According to the latest Fitch report, the details of which were shared with MGW, casinos in Atlantic City are “most at-risk” in the near term from pending gaming regulations.
According to the report, however, casinos in other areas also face a changing regulatory landscape too, says Fitch Ratings.
“The regulatory landscape casinos have contended with, in some cases for many years, is continuing to evolve,” says Alex Bumazhny, a Senior Director, quoted in today’s report summary. “As iGaming gains steam, daily fantasy sports rules develop and individual states consider expansion, Atlantic City is not the only jurisdiction contending with the swift changes.”
Pennsylvania, New Jersey and Arkansas all made progress toward expanded casino gambling, while the latter two may see additional changes via referendum in November. Additional expansion in New Jersey would cannibalize Atlantic City casinos, potentially resulting in additional closures there. An expansion in Pennsylvania would exacerbate the recently passed 2% increase on table games tax, which will cost the states’ casinos about $17 million per year. Casinos in Missouri, Louisiana, and Oklahoma would be most impacted by expansion in Arkansas.
Despite the attention online gaming including poker and daily fantasy sports have received, Fitch believes “they are unlikely to significantly impact gaming credits in the near future.”
The full report, “U.S. Gaming Regulatory Monitor: A State-by-State Guide to Existing and Proposed Gaming Regulations,” is available now at the Fitch website here.