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The History of Las Vegas and Atlantic City: No Strangers to Overcoming Crisis
By GamblersPick Apr 07, 2020The history of Las Vegas and Atlantic City is filled with ups and downs. These cities have great resolve, and these are just a few examples as proof.What does the history of Las Vegas and the history of Atlantic City share in common?
If you visited Atlantic City in the 1880s, you'd see nothing except a few hotels and a boardwalk. In 1905, Las Vegas was nothing more than a dustbowl town in the middle of the Great Basin desert.
From these humble origins, two of the world's most spectacular gambling cities emerged. But it hasn't been all glitz and glamour—each city has had its share of hard times too.
The coronavirus pandemic is the latest crisis to affect the gambling industry, but it's far from the first. Do we have reason to believe that Las Vegas and Atlantic City will emerge from the pandemic stronger than ever?
Absolutely! In this post, we'll take a look at some challenges each city has faced (and successfully overcome). Read on to learn more!
The History of Las Vegas: Overcoming the Worst
The early days of Vegas were the stuff of legend—glittering lights, dazzling celebrities, and Rat Pack singers in every lounge.
More recently, Las Vegas has been the center of some interesting scandals and secrets. It's also been the center of a few newsworthy tragedies, which we'll outline here.
Fire at the MGM Grand (1980)
Did you know that one of the worst fires in US history happened right on the Las Vegas Strip?
It happened on November 21, 1980, at the MGM Grand Hotel and Casino. Over 5,000 guests were asleep in their rooms when a fire broke out in one of the resort's restaurants around 7 am.
With no sprinklers installed in that part of the hotel, the fire quickly spread. When all was said and done, 85 people were killed and another 650 were injured. To this day, the crisis remains one of the worst disasters in Nevada history and the third-worst fire in US history.
Bonus fact: The rebuilt MGM Grand was designed with a state-of-the-art sprinkler system to prevent a similar tragedy in the future.
The Economic Crisis (2008)
In the years before the housing crisis struck, Las Vegas was experiencing one of the biggest booms in its (already impressive) history. With housing prices skyrocketing as much as 80%, nonstop building projects went on for over 5 years.
Then the bubble burst, taking with it the dreams of many Las Vegas residents.
Almost overnight, home prices in Las Vegas plummeted by 60%. Nevada hit #1 on foreclosure and unemployment lists and stayed there for years.
To add insult to injury, the tourism industry also took a major hit. No one else had disposable income, either, which meant far fewer visitors to the resorts and casinos.
Did Las Vegas rally? You bet. Housing prices are rising at one of the fastest rates anywhere in the US, at an average of 12% per year. Unemployment rates also dropped while the hotels and casinos filled up again.
Mass Shooting at Mandalay Bay (2017)
You undoubtedly remember this news headline from 2017—the deadliest mass shooting in US history.
On the night of October 1, a lone gunman opened fire into a crowded concert from his room at Mandalay Bay. In a matter of minutes, 58 people were killed and another 850 were injured.
The shooter, who worked alone and did not belong to any known terrorist organizations, appeared to have no motive for his actions. He took his own life before police found him in his hotel room.
The company that owns Mandalay Bay agreed to pay up to $800 million in damages to the victims and their families. The resort, which is one of the largest convention properties in the world, is already back up to 90% of its pre-shooting revenue.
The History of Atlantic City: Weathering the Storms
Atlantic City may not have as many headlines as its Nevada counterpart, but it's no stranger to hard times either. Here's a quick rundown of some of the challenges this New Jersey resort town has faced.
Hurricanes
No less than 12 hurricanes and tropical storms have made landfall in New Jersey, directly impacting Atlantic City.
The unnamed hurricane of 1889 destroyed the famous boardwalk and left the city under 6 feet of water. While World War II raged, the Great Atlantic Hurricane of 1944 battered the Jersey shore with 30-foot waves.
More recently, 2012's superstorm Sandy (a hybrid hurricane and Nor'easter) decimated thousands of homes in and around Atlantic City. But as with other storms from the past, Atlantic City was quick to repair and rebuild.
The Mafia & Disorganized Crime
Most of what we know about organized crime in America has some sort of connection to Atlantic City. Names like Al Capone, Nucky Johnson, and Nicky Scarfo are synonymous with the scandals that built the town's casino empire.
Atlantic City was strong enough to survive the Prohibition era, the Great Depression, and decades of organized crime scandals. What has been the result?
Atlantic City's nine casinos opened 2020 with a 23% increase over 2019 earnings. We may see those figures dip during the coronavirus outbreak, but rest assured that Atlantic City will bounce back like it always does.
The Future of Las Vegas & Atlantic City
So, what did you learn from this brief history of Las Vegas and Atlantic City?
The takeaway is that these casino towns are no strangers to hardship and adversity. From mafia dealings gone wrong to economic booms and busts, these cities have proved they can weather any storm.
What about the world's current crisis, the coronavirus pandemic? Will it be the breaking point for the gambling industry?
If history is any indication, we can confidently answer "NO!" The residents of Las Vegas and Atlantic are sure to rally and their great cities will thrive again, just as they've always done in the past.
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