ATLANTIC CITY — As legal battles over prediction markets continue to unfold across the country, casino analyst Anthony Marino says the rapidly growing industry poses one of the biggest long-term threats to Atlantic City's regulated casino market.
Appearing Monday on WOND's The Don Williams Show, Marino said casinos, tribal gaming operators and state governments are increasingly united in opposing prediction markets, arguing they function much like sports betting while operating under a different federal regulatory framework.
"We have now almost total chaos in American gambling," Marino said. "Unless something changes, we're going to continue to have problems."
Prediction markets allow users to wager on the outcomes of future events ranging from elections and sporting events to economic indicators. Unlike traditional sports betting, the companies contend they operate as federally regulated financial exchanges rather than gambling operators.
Marino said that distinction has sparked a growing legal battle between the federal government and individual states.
"The Supreme Court did rule in 2018 that it's okay for the states to regulate gambling," Marino said. "The problem is the federal agency says this isn't really gambling. They say it's creating trading markets."
According to Marino, more than 40 state attorneys general have opposed the expansion of prediction markets, while states including New Jersey and New York have taken legal action seeking greater authority over the industry.
"The states continue to sue," Marino said. "Most recently, New York State launched another major attack on prediction markets."
Marino also noted that the Casino Association of New Jersey has joined the legal fight, saying Atlantic City's gaming industry views prediction markets as a direct competitive threat.
"The Casino Association of New Jersey recently joined a suit against prediction markets," he said.
Marino warned that if prediction markets continue expanding without additional regulation, they could undermine the regulatory systems that govern casinos and sportsbooks nationwide.
"It has a very great potential to destroy the regulatory system of the State of New Jersey and the other states that have commercial gaming," he said.
Concern for Atlantic City's Future
Marino said Atlantic City already faces significant competitive pressure from neighboring states, particularly as downstate New York moves closer to opening full-scale casinos.
He said adding another largely unregulated form of wagering could create additional challenges for the resort's gaming industry.
"We should keep a close eye on it," Marino said. "The battle has been joined."
Marino also expressed concern about the growing accessibility of gambling, particularly among younger adults.
"Anybody listening who has young men, especially, in their family—ask questions," he said. "Are they getting involved in betting?"
He cited reports suggesting gambling problems may be increasing among younger demographics as mobile wagering and online betting continue to expand.
Future Casino Ownership Questions
Near the end of the interview, Marino also raised questions about Atlantic City's casino ownership landscape should future mergers occur within the gaming industry.
He noted that if a company already operating multiple Atlantic City casinos were to acquire Caesars Entertainment, regulators could require one of the casinos to be sold because of New Jersey's ownership limitations.
"Who's going to buy a casino in Atlantic City with two big companies opening in New York?" Marino asked.
While he acknowledged there are always investors willing to enter the casino business, Marino said the competitive landscape has become increasingly challenging.
"There's always somebody with enough money that decides they want to get into the casino industry," he said.
As an example of continued confidence in Atlantic City's future, Marino pointed to recent investment in Ocean Casino Resort.
"We have positive news," he said. "The Ilitch Group from Detroit just decided to put a lot of money into Ocean because Ocean is doing so well."
Despite the industry's challenges, Marino said Atlantic City's future will depend on its ability to remain competitive while adapting to rapid changes in the gambling landscape.
"We'll see what happens," he said. "But this is one of the biggest issues facing regulated gaming today."
Photo: Tdorante10 / Wikimedia Commons. Licensed under CC BY-SA 4.0. View license
About the Author
Scott Stephens
Scott has been an on-air personality, producer and newscaster for 30+ years. He has been a mainstay in the South Jersey Community and on the air across many different area stations. Scott can currently be heard on Kool 98.3 and News Talk 1400 & 92.3 WOND.
