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I just hope they tax the hell out of it. Bad idea IMO. You must be logged in to post a comment. To put it bluntly, I see nothing to recommend in this idea, other than the obvious that an empty building and parking lot has been paired with someone looking for those things โ€ฆ the synergy with the rest of the mall will be virtually non-existent. Shopping development operators should be free to develop their malls to create a good business environment for their tenants. Take Our Instant Poll How receptive should shopping development operators and their tenants be to adding casinos to retail malls?{/INSERTKEYS}{/PARAGRAPH} York, PA is not Las Vegas. Las Vegas was built around and for gambling and part of its strategy in attracting visitors is offering retail in the same way it offers entertainment. David Naumann Retail Industry Analyst. The Times report also noted that casino retailing benefits by attracting a constantly changing mix of customers, unlike an area such as Times Square that still counts many local residents and office workers among its daily traffic. That is what is attracting the people. I think there are plenty of other more interesting options for some of these big spaces in malls, but in certain markets maybe casinos will work. That is their business model and the odds are dead set against their customers, by definition. Moms pushing strollers, kids in play areas, people meeting for coffee. I wish them well but suggest they tryagain. Mel Kleiman President, Humetrics. Some malls have great, consistent traffic. Negative perceptions about casinos have lessened over the years and will be acceptable in mall settings. The new American Dream Mall in New Jersey features three different theme parks, and that too is bringing in customers. Exactly what I was going to say Richard. The mall has also lost a Bon-Ton and J. Though closing may be the best option for many. In Pennsylvania, it is hoped that the mini-casinos will support local jobs, spur development and revitalize the malls. According to a recent profile in the New York Times , the opening of Forum Shops at Caesars Palace in demonstrated the opportunity for street-front retail. How is this good for a retail tenant that needs that money too? I can see a company like Cornish making this work. If adding casinos is legal as it is in Pennsylvania, why not? But when you can create an environment that will get customers in to walk around like a mall and combine that with an exciting shopping atmosphere, browsing kicks in, which leads to sales due to the impulse buying. If you have an underperforming mall, putting a casino in may draw more traffic, but obviously the location and other factors are involved for the success to the rest of the merchants. If malls are turning into entertainment centers restaurants, theaters, ice rinks, etc. But, with that being said, casinos and gambling bring a whole different vibe to the shopping environment that may not be a benefit to retailers. One would go, walk by multiple stores, enter some, and eventually buy. A certain number of malls have the opportunity to add true casino operations, comparable to what you describe in Bethlehem. Are casinos the answer? I think the stigma about gambling is still very much alive. Rich and I have worked in Las Vegas six to 12 times a year for as long as I can remember. The downside is the potentially undesirable aspects that casinos attract: gambling addicts, inebriated customers, and people that have lost all their money and may resort to theft at stores. Malls are positioned as family places. Casinos remain highly-regulated, but states appear increasingly open to gambling as an economic driver with many recently legalizing online sports betting and gaming. It might be time to acknowledge that we are over-stored, and re-purpose some of this property to residential. View Results. I agree Cathy. Previously, most retail shops were only located inside casinos. The other about the mall as a place that brings a wide variety of retailers together, who collectively share and attract customers who buy goods and services. A law enacted in allowed existing casinos to construct such smaller , satellite casinos. As someone who keynotes in Vegas multiple times a year I can tell you the buzz is off gambling in Vegas with fewer and fewer people at the game rooms and more at the pools and events. Vegas has changed, gambling is no longer the big money maker โ€” or draw โ€” that it used to be. {PARAGRAPH}{INSERTKEYS}Las Vegas illustrates the potential of mixing gambling and retailing. For the mall owner, it is probably an upgrade in ROI. The success of malls was based on the fact that they offered a leisurely shopping experience. Such is the desperate state of retail landlords and perhaps their tenants too, to the extent that they support this strategy. And while casinos may be a useful way to fill empty space for mall operators, I doubt that it would translate into any meaningful impact on mall retailer sales. Probably not. I think a well-run casino can co-exist in retail; you see many casinos with retail close by already. Have the risks and negative perceptions around casinos lessened over the years? A casino will likely improve a mall as a real estate asset. Those malls most often have high-end food courts and restaurants. Can casinos save the mall? While I think some shoppers might swing by the casinos to throw a few coins in the slots, I doubt that those whose destination is the casino are going to take that shopping stroll. Is it a silver bullet to all existing mall development? In short, people who go to play slots are spending money that they otherwise could spend on retail goods and services. On the win side we have new jobs, new,traffic for the malls, more retail operations that will survive, and a new tax base. Skip to main content. Many lavish flagships have since arrived on the Strip to support a thriving retail scene. There definitely needs to be some innovation injected into many malls to keep them viable. Braintrust "If adding casinos is legal as it is in Pennsylvania, why not? Seriously, will this increase mall foot traffic in the right way? Yesterday it was malls as bars, today as casinos. How receptive should shopping development operators and their tenants be to adding casinos to retail malls? The question is whether a casino customer is willing to do a little shopping when they win. On the losing side we have the potential for a higher crime rate, addiction problems, and the fact that the people who lose the most at gambling are the ones who can afford it least a hidden tax. At York Galleria Mall, the Hollywood Casino York will bring slot machines and 24 table games as well as sports betting and entertainment options to a vacant Sears to draw customers from south central Pennsylvania and northern Maryland. In both cases, the potential negative impacts of the casinos were outweighed at public hearings by the promised community benefits. Looks to me like two totally different elements: shopper vs. Beyond Bon-Ton, the mall also recently lost a Sears. Richard Layman Urban Planner. So THIS is the silver bullet for malls? You know, yesterday we discussed serving alcohol in shopping centers to help bring in more customers, so why not casinos as an option? It is definitely a good way for mall development companies to generate revenue from vacant space and existing retailers in the mall may generate extra traffic. Interesting idea, especially when we look at the trend of adding theater and entertainment to the shopping experience. As I write this I am sitting in a nearly deserted local mall, waiting to meet with a client. This is a double-edged sword! Retail is getting more and more desperate and more and more sad as well. People who buy are hopeful. The secret is keeping the mall exciting and, at the same time, still presenting reasons for the customer to shop. I shudder to see what the idea tomorrow will be โ€ฆ funeral homes? Casino Pittsburgh is expected to open this summer in a former Bon-Ton with slot machines, 30 table games, a sportsbook area and dining and entertainment options. Just as we are over-stored, many places are beginning to be over-casinoed.