Atlantic City loses the economic battle as Moody’s Investment Service reports Las Vegas performed far better.
Despite both cities suffering from a real estate downturn and underperforming gaming industry, Las Vegas managed to recover faster than its rival casino hub. As a result Moody’s has given “Sin City” a better credit rating, according to gambling news.
One of the primary reason why Las Vegas experienced a more rapid recovery than Atlantic City has to do with several important factors. Regional demographics, competitive pressures and economic diversity all played a role the resurgence of the city that was once regarded as a gambling Mecca.
Although gaming is the focal point of Las Vegas’ economy, in recent times they have also diversified their investments. Now the city generates considerable revenue from conventions and healthcare.
Atlantic City is struggling in many areas
Atlantic City has struggled to cope with a number of issues that have emerged lately. The poverty rate is considered to be on an alarmingly high level, while the population figures seem to be stagnating.
In addition, the unemployment rate is among the highest in the US as it currently stands at a concerning 14.9 percent. The state of New Jersey has implemented mobile casino gambling sites to help generate revenue, however result were rather disappointing.
Moody reported, “The greater Las Vegas metropolitan area is supporting long-term growth in construction, commercial activity and has elements of a nascent tech economy. It also is a popular retirement destination and has a growing healthcare sector. Atlantic City, in contrast, is almost entirely dependent on casinos and gambling tourism.”