By Scott Cronick
Jim Allen never forgot where he came from.
Everyone in the casino industry knows Jim Allen and his South Jersey roots. The Mainland Regional High School graduate started as a cook in the food and beverage department as a teen at Bally’s Park Place and has never looked back.
Except when it comes to Atlantic City.
Without Allen, who is now the chairman of Hard Rock International and Chief Executive Officer of Seminole Gaming, the former Trump Taj Mahal may be still sitting vacant as opposed to being the gorgeous, rocking powerhouse that is now the No. 2 gaming destination in Atlantic City, only behind Borgata Hotel Casino & Spa, which has about 700 more rooms than Hard Rock.
There is no question that Allen has a soft spot for where it all began for him. And while he calls South Florida home now, a big part of his heart remains in Linwood and Atlantic City.
That — and the business model of success he promises the Seminole tribe — are big reasons why Hard Rock not just survives but thrives in Atlantic City.
But Allen is also a realist.
Allen, who was recently inducted into the American Gaming Association Hall of Fame Class of 2024, couldn’t be more realistic about the advent of additional casino gaming in New York — three new licenses expected to be announced this year or in the beginning of 2026 — and its potential impact on Atlantic City.
New York in the shadows
No one knows the potential impact more than Allen, who is in the mix — personally and professionally — putting the Hard Rock in a position to receive one of those three licenses in a partnership with Steve Cohen, the billionaire hedge fund manager and owner of the New York Mets.
Their plan is to make the next Hard Rock casino an $8-plus-billion centerpiece of Metropolitan Park, which features the existing Citi Field, where the Mets have played since 2009; the United States Tennis Association Billie Jean King National Tennis Center, where the U.S. Open is hosted annually; 20 acres of public park space; bars and restaurants; a live music venue; community athletic fields and bike paths; hotel towers; a sportsbook; and much more.
“I guess the state will make a decision this year,” Allen said on Off The Press with Scott Cronick, which broadcasts annually live from the stunning Seminole Hard Rock Hotel and Casino Hollywood in Florida, which boasts its inaugural Guitar Tower, an architectural wonder that is 450-feet high hosting 638 rooms, one of the most amazing pool scenes in the country, restaurants, spa and more that debuted in 2019 as part of a $1.3 billion expansion project to the Florida-based casino. “Obviously that can change, but that said, when they gave us dates in the past, we would always hear, ‘Don’t necessarily worry about it.’ But this time it sounds for real.”
That reality should be alarming for New Jersey casino operators and the State of New Jersey itself. But, despite some improvements that have certainly made Atlantic City better over the past few years, they aren’t the gigantic improvements and new infrastructure investments needed to compete with New York’s potential negative effect on Atlantic City.
Hard Rock seems to be in a good position to get one of those licenses, according to Allen, who is optimistic.
“No one has submitted their applications yet — they are not due until June 28 — but all bidders have been required to go to community board meetings and get the local communities’ gaming support,” Allen said. “We were the only bidder that had to go through six committees, and we had 83 to 84 percent approval by actual vote. No other applicant has received approvals to move forward. It’s a good sign, but that doesn’t mean it’s the end of the game. I have full respect for Wynn Resorts — they do a good job — but they lost their community vote 38-0.”
Allen believes that all options are on the table when it comes to those three licenses. Many believe two of those three licenses will go two of the VLT casinos that currently exist: Resorts World in Jamaica; and Empire City at Yonkers Raceway.
“They can issue three new licenses and keep the existing VLT licenses, but there also could be one getting a license and one not getting one,” Allen said. “Any combination is unequivocally on the table.”
The worst-case scenario for Atlantic City would be for three new projects getting licenses in addition to allowing the current VLTs to operate as is.
“Either scenario is not good for Atlantic City,” Allen warns. “I will try to stay positive here, and I certainly enjoy and respect and admire Gov. Phil Murphy, but unfortunately Atlantic City got nothing. It’s not that different today. There have been some improvements, I’m not saying that, but to address the Wynn project, which is $7 to $12 billion, our project is $8-plus billion? When companies coming out saying they are spending $7 to $12 billion, how does that project compete in Atlantic City? And how many people are saying, ‘I don’t want to get in my car and drive two-and-a-half hours or longer. People get confused: It’s two hours to the tunnel (from A.C.), but how far is it to Long Island? When you look at the percentage of customers coming to Atlantic City that we get from Norh Jersey, Long Island and New York, it’s a very high number.”
Allen said when Hard Rock and its partners were paving the way to open in Atlantic City, there were visions and promises from the state that have not happened.
“To not do anything with infrastructure and the beautification of the town when they had $11 billion they could have distributed, and Atlantic City got $20 million for boardwalk improvements is disappointing,” Allen said,. “And, candidly, we at Hard Rock did not invest over $500 million with that … that wasn’t the game plan outlaid to us. $20 million is nice, but can it compete with $8 billion?”
Allen said if the state does not step up with some major dollars to make major improvements, it will feel the New York pain.
“The strong will make it, but the weaker properties will have to do a real review, and if they are in a situation where they have to really cut back, then you are dealing with a ripple effect not just to Atlantic City but to Atlantic, Cumberland, and to a lesser extent, Cape May counties.”
Hard Rock in Queens and Meadowlands?
If Hard Rock and Cohen get one of the licenses and the nod to proceed in Queens, it will be momentous for everyone involved,
“We are completely redoing the mass transit and the artery out to Flushing Bay for ferries to come in,” Allen explained. “So, it’s a massive project. And we don’t have neighbors next door. We are in an area with infrastructure. We don’t have housing or very high net-worth individuals right next door. The Hudson Yards project (by Wynn) is an incredible project, but there are people there who don’t want gambling right next door.”
There is some good news, according to Allen. Due to a prior deal that came before the New York licenses were ever proposed, if New Jersey does ever allow gambling in North Jersey, the Hard Rock has a deal structured to operate in the Meadowlands. Many believe that the New York casinos will make legislators knee jerk and propose North Jersey as a gambling destination to compete.
However, Allen said conversations about gaming in North Jersey have not happened recently.
“That has been in conversations in years past, but I don’t know any active legislation in New Jersey that says, ‘Let’s do gaming in North Jersey,’” Allen said.
However, there is discussion about New York operators that could make the threat of New York come sooner to Atlantic City than previously expected.
“The other problem Atlantic City has is the State of New York finally came back with specific legal answers to Round 2 of questions, and now there is a pathway to open sooner as long as you build a permanent product,” Allen said. “Originally, it was you have to build everything at once to open, so that could take three to four years, or longer in some cases. They specifically don’t want to use the word temporary, but say we are building this building and it is the lobby, and this is what we will open with. They are allowing that to occur.”
In other words, Atlantic City — and the state — should have been proactive yesterday, and now they have to be reactive with no time to spare.
(For the entire hour-long interview with Allen, please check out the Off The Press with Scott Cronick podcast on WONDRadio.com/Podcasts, and click on Hour 1 of the Feb. 18 show.)
Scott Cronick is an award-winning journalist who has written about entertainment, food, news and more in South Jersey for nearly three decades. He hosts a daily radio show – “Off The Press with Scott Cronick” – 4 to 6 p.m. weekdays on Newstalk WOND 1400-AM, 92.3-FM, and WONDRadio.com. He can be reached at scronick@comcast.net.
