In a surprising turn of events, the Federal Trade Commission (FTC) and the Department of Justice (DOJ) have jointly issued a statement claiming that Atlantic City casinos can still potentially violate antitrust laws despite their recent struggles and declining revenues. This announcement has sent shockwaves through the gambling industry and raised concerns about potential collusion and anti-competitive behavior among the city’s major gaming establishments.
The FTC and DOJ’s assertion comes on the heels of a recent investigation into the competitive landscape of Atlantic City’s casino market, which has been rocked by the closure of several major properties in recent years. The agencies have expressed concerns that the remaining casinos could engage in anti-competitive practices such as price-fixing, market allocation, and collusion to restrict competition and artificially inflate prices.
According to FTC Commissioner Rebecca Kelly Slaughter, the current state of the Atlantic City casino market presents a unique set of challenges for regulators. “With the closure of several casinos in recent years, the remaining establishments have a greater ability to control the market and potentially engage in anti-competitive behavior,” Slaughter said in a press release. “It is crucial that we remain vigilant and take action to prevent any violations of antitrust laws that could harm consumers and stifle competition in the region.”
The announcement has prompted a swift response from industry stakeholders, with many expressing concern about the potential implications of the FTC and DOJ’s statement. “This is a troubling development for the Atlantic City casino industry, which is already facing significant challenges,” said David Schwartz, a gambling historian and director of the Center for Gaming Research at the University of Nevada, Las Vegas. “If the FTC and DOJ are serious about enforcing antitrust laws in this market, it could have far-reaching consequences for the entire region.”
Atlantic City has long been a focal point for antitrust enforcement in the gambling industry, with several high-profile cases in recent years involving allegations of collusion and anti-competitive behavior among casino operators. In 2016, the DOJ filed a lawsuit against two Atlantic City casinos, accusing them of engaging in an illegal agreement to restrict competition and harm consumers. The case ultimately resulted in a settlement that required the casinos to pay significant fines and adopt measures to ensure compliance with antitrust laws.
As the FTC and DOJ continue to monitor the Atlantic City casino market closely, industry observers are bracing for potential enforcement actions and increased scrutiny on the remaining establishments. The announcement serves as a stark reminder that even in a struggling market, antitrust laws must be upheld to protect consumers and promote competition.
At this time, it remains to be seen how the Atlantic City casinos will respond to the FTC and DOJ’s statement and what steps they will take to ensure compliance with antitrust laws. However, one thing is clear: the gambling industry in this iconic resort town is facing a new era of regulatory scrutiny and enforcement that could shape its future for years to come.
