STATESIDE
Stateside Sharon Harris tells us greed is not good. Ever. H
Not bad for getting sacked. Most of us walk out with our belongings and a few dollars.
ow important is a good opinion of management? Perception may be everything if employees view their management negatively. Conditions are tough enough as casinos aim to attract
customers. How bad is it when they must also worry about rumors circulating among their staff? I recently overheard a casino employee describing
some recent brawls an Atlantic City casino nightclub. While condemning the fighters, he also bashed management for laying off many security staff. In his mind, corporate belt tightening only affected
“lowly employees”, not upper management. He also railed against the multi-million salaries, bonuses and stock options of certain gaming CEOs. In these times, that assumption may be invalid as more executives take pay cuts or freezes. Whether accurate or not, management must prevent
employees from viewing their employment as an “us” vs “them” situation. Is that fair? Maybe not, but that perception can affect employee performance. Top executives should strive to ensure theirs is a “happy ship”. The movie “Wall Street: Money Never Sleeps” was
recently released. In the original 1987 film, lead character Gordon Gekko proclaimed, “Greed is good”. He was wrong. Motivation is good; ambition is good; hard work is good, but greed has no place in corporate life or anywhere else. It always backfires with the personnel and public. Speaking of casino executives, it’s out with the old,
in with the new as casino veteran Dennis Gomes returns to Atlantic City. Along with Atlantic City native Morris Bailey, a New York real estate developer, Gomes will purchase Resorts Atlantic City for $35 million. They promise a profit within a year. Things have changed since Colony Capital LLC
bought Resorts in 2001 for $140 million and opened a $110 million hotel tower in 2004. Investors loaned Resorts $360 million to refinance in 2007. Investors then assumed the property in December 2009, after Colony Capital failed to make payments. The company also stopped payments on the Atlantic City Hilton in July 2009, and faces bank receivership requests for Mississippi’s Resorts Tunica and Bally’s Tunica. Enter Gomes and Bailey. Gomes has a 30-year
history as a casino regulator, manager or CEO at 14 properties across America He admits a soft spot for Resorts, since he was part of its initial licensing investigation team in 1978. Gomes claims to specialize in revitalizing troubled casinos, and plans big-name entertainment and new
10 OCTOBER 2010
restaurant concepts to lure customers. However, some observers doubt a quick turnaround, particularly without substantial investment. I wish Gomes and Bailey the best. We need fresh
thinking in conjunction with Governor Christie’s proposed tourist district management. Down the Boardwalk, Trump Entertainment Resorts
Inc. has also overhauled its executive ranks, following its own new ownership structure. Six senior executives have resigned, including the Trump Taj Mahal’s general manager, the only woman to run an Atlantic City casino since 2006. Trump’s new ownership contract triggered a “change
of control” provision. Several departing executives will receive twice their base salary as severance. In some cases, that could total just under $1 million each. The reshuffling should create a leaner, more cost efficient organization since remaining executives will double up on their workload. Not bad for getting sacked. Most of us walk out
with our belongings and a few dollars. Across the Delaware River, Pennsylvania continues
its gaming expansion. Table games are going strong after debuting in July. However, a major controversy has erupted over one outstanding resort license, set to be awarded to one of four statewide contenders. The Gaming Board will award the license this fall. One applicant wants to renovate a hotel and
conference center half a mile south of Gettysburg’s historic battlefield. It will be smaller than the state’s racetrack and stand-alone properties. The potential developer plans 600 slots and 50 table games. The battlefield and quaint town hosts 160,000
tourists annually. In American history, Gettysburg holds great Civil War significance as a turning point for both sides. In July 1863, 50,000 died or were injured during the three-day Battle of Gettysburg. The Union army’s victory destroyed any hopes of a future Confederate triumph. “Battle lines” were drawn as 400 attended public
hearings. The Civil War Preservation Trust opposes the casino, not only on moral grounds, but also citing the town’s insufficient utility infrastructure. They also fear losing more than 1,100 local jobs. However, the Gettysburg Battlefield Preservation
Association and county officials support the project. An economic consultant’s report projects 900 new jobs, with $16 million annual wages, and $1 million annually to the local governments. What part – if any – should history play in this decision?
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