As the U.S. economy continues to struggle – with 9.4% unemployment and 17% underemployment according to the White House – tourism industries are taking the biggest hit. When people have no job or are worried about losing their job, they aren’t quick to take a trip somewhere and spend money. In the casino industries of Las Vegas and Atlantic City, those problems are compounded with decades of missteps. The result is that they are continuing to struggle and need to make changes to regain their relevancy.

Nevada casinos reported winnings of $822 million in November, which is down 5.9% from the same time the previous year, which wasn’t exactly a banner year. The Nevada Gaming Control Board raised $49.8 million in tax revenue from the casinos in November, which is a 12.7% drop from the previous year. In Las Vegas, winnings were down 4.1%, which Reno saw a 21% drop.

End of the year figures for Nevada casinos have not been released (at least, I couldn’t find them). New Jersey, however, who has the second-largest casino market in the country, has. On Monday, the government released a report stating that Atlantic City casinos brought in $3.6 billion in 2010. That is a 9.6% decline since 2009. Since 2006, when the industry brought in $5.2 billion, revenue has dropped by almost 31%.

Think about that for a second. In four years, Atlantic City casinos have lost nearly one-third of their business. That is why brick and mortar casino industries need to change to stay relevant. They need to look at more ways to attract customers and make money. One of those ways is online gambling.

Traditionally, brick and mortar casinos have opposed online gambling, seeing it as competition. Recently, however, some have embraced the trend and want to launch their own online casinos. New Jersey will be the first state to regulate online gambling, assuming Governor Christie signs the bill sitting on his desk. In addition to online gambling, New Jersey has passed a radical reform package meant to save the sputtering Atlantic City casino industry.

Nevada, on the other hand, doesn’t seem to be doing much to save itself. Waiting for things to get better won’t help. The brick and mortar casino industry needs help and changes need to be made if they are going to retain (or regain) their relevance.

Tags: Atlantic City casinos, casino industry, Vegas casinos

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