The New Jersey Supreme Court has made a ruling against Ocean Casino Resort in Atlantic City, stating that the casino is not entitled to payouts from business interruption insurance due to losses during the COVID-19 outbreak. Despite the casino’s claims, it has rebounded from the pandemic and remains one of Atlantic City’s leading venues.
The case involved Ocean Casino Resort’s claims against three insurance companies: AIG Specialty Insurance Co., American Guarantee & Liability Insurance Co., and Interstate Fire & Casualty Co. These insurers denied payouts, stating that the casino did not suffer direct physical loss or damage due to the virus. The New Jersey Supreme Court ultimately ruled that the company had to demonstrate direct physical loss or damage to its property in order to be eligible for a payout, which it failed to do.
This ruling aligns with decisions in various state and federal courts nationwide, which denied insurance claims related to business interruptions during the COVID-19 pandemic. Despite this setback, Ocean Casino Resort has largely recovered from the pandemic and is enjoying an impressive resurgence. The casino posted $48.1 million in total gaming revenue in October 2023, up 52.6% compared to the same month in 2022.
Even without the insurance funds, Ocean Casino Resort is well-positioned to capitalize on gambling’s growing popularity in the USA. The New Jersey Supreme Court’s decision can benefit the sector in the long term, reaffirming US regulators’ overall stance on this matter. It is time for operators to focus on the future and seize new opportunities, providing customers with the best possible experience.