Borgata in Atlantic City has just announced that its plans for renovating the casino floor will push through next week, amidst struggles with its customer base in Atlantic City, which has increasingly shifted to Ocean and Hard Rock. To be precise, Borgata is doing away with the Gypsy Bar and replacing it with more casino space, and there are also plans to add a restaurant with an Asian theme.

Atlantic City's Borgata Hotel Casino & Spa, operated by MGM Resorts International, is gearing up for a significant upgrade to its gaming floor starting next week. The renovation comes as the iconic casino faces growing competition, particularly from Ocean Casino Resort and Hard Rock, which have been capturing market share, especially among VIP casino players. As Borgata prepares to reimagine its offerings, the stakes have never been higher in the competitive Atlantic City landscape.

One of the most notable changes involves the closure of the Gypsy Bar, which will make way for expanded gaming space. Borgata officially announced that the Gypsy Bar, a staple located next to the Izakaya fine dining and Old Homestead restaurants, would close on September 6. In its place, the casino plans to introduce a revamped gaming area, promising an enhanced experience for its guests.

Nik Rytterstrom, Borgata's president and COO, expressed enthusiasm about the upcoming changes, stating, "We couldn't be more excited about this project as we look ahead to this next phase of Borgata's evolution. These enhancements are not just about maintaining our position in the market - they're about pushing the boundaries of what our guests can expect from a world-class gaming destination."

New additions for an elevated guest experience

As part of the overhaul, Borgata's gaming floor will also feature a new lounge, designed to cater to discerning clientele. The lounge will offer a bespoke collection of rare liquors and spirits from around the globe. Additionally, plans are underway for a new Asian restaurant which will further diversify the dining options available to guests.

This project marks the first significant undertaking at Borgata since Rytterstrom became the president and COO in March of this year. Rytterstrom, who has been tasked with leading one of MGM's most important assets outside of Las Vegas, is determined to keep Borgata ahead in the highly competitive Atlantic City market, which is currently home to nine casinos.

Borgata's battle to reclaim market dominance

For years, Borgata has held the title of Atlantic City's most profitable casino, regularly generating the highest gross gaming revenue in the city. However, its market dominance has faced challenges since the openings of Ocean and Hard Rock in 2018. Borgata's GGR in 2019 was $709.6 million, capturing 26.4% of the customer base. However, Hard Rock and Ocean rapidly carved out significant portions of the city's gaming revenue, with Hard Rock taking 12% of the market and Ocean 8% that same year.

In recent years, Borgata has seen a decline in its market share. By 2023, while Borgata still generated a hefty $729.7 million in GGR, its market share had slipped to 25.6%, while Hard Rock captured 18% and Ocean held 14.5%.

Borgata has managed to rebound this year - through the first eight months of 2024, Borgata's casino win stood at approximately $427.8 million, representing 26.2% of the market. Hard Rock followed closely with $316.9 million, or about 19.5%, and Ocean maintained a stable position with 14.5% of the market, generating $235.6 million.

Recent investments to stay competitive

Borgata's current investments in its gaming floor follow a series of recent upgrades. Earlier in the year, the resort completed a $55 million renovation of its Water Club tower, which was rebranded as the MGM Tower at Borgata. This renovation included refreshing all 700+ guest rooms and suites with cool, modern tones aimed at enhancing the overall guest experience.

In addition to the MGM Tower, Borgata offers a total of 2,727 rooms. The resort reported that during the first half of this year, the rooms were occupied 71.1% with a price per night of almost $180.

Borgata has also made other notable enhancements, including a revitalization of the Long Bar, an expansion of the outdoor pool area, and the opening of the Overlook. The Overlook, which spans 9,060 square feet, offers stunning views of the Atlantic Ocean and Marina District from its 32nd-floor location, making it a prime venue for events.