ATLANTIC CITY: DOWN BUT NOT OUT by Sharon Harris S
ince Resorts debuted as Atlantic City’s first casino in May 1978, the properties have focused almost exclusively on gaming. No longer able to do that because of growing competition this year, there is a changing evolution underway. Much more unrelated activity within the properties and Atlantic City itself is taking hold. As New Jersey gaming revenues continue to decline, the city is taking bold
steps to emulate its Las Vegas counterpart. The American Gaming Association’s annual State of the States survey documents Atlantic
City’s ongoing struggles. Although its 11 casinos maintained their number two status by late 2010, consumer spending on gaming had dropped 9.4 percent from 2009, with annual totals of $3.94 billion. Tax revenues declined by 12.1 percent to $305.50 million. Late 2010 employment numbers of 34,146 represent a 6.1 percent drop from 2009. To counteract a downward trend, virtually every Atlantic City casino operator and legislator realizes that non-gaming amenities are the future to attract both gamblers and non-gamblers to stay and spend their money. On February 1, 2011, Governor Chris Christie signed
sweeping legislation that forever alters how casinos and their surrounding neighborhoods function. It creates a Tourism District, and manages much of the city’s infrastructure and marketing. Maximizing the available funds should create a cleaner, more inviting environment. Christie’s new regulations also streamline regulation and ease operations. A second component of the regulatory changes legalizes smaller “boutique” casinos that
require only 200 sleeping rooms instead of the long-mandated 500. Another significant change involves the state’s four racetracks. After seven years of
propping up New Jersey’s racing industry, to the tune of $176 million, in exchange for the racetracks agreeing not to install video slots, subsidies may come to an end. Christie has vetoed any program to provide additional gaming subsidies to the racetracks. The February Tourism District legislation would have extended that process for another
three years. This year, the casinos will retain the estimated $15 million subsidy to pay their own promotional and marketing costs. The excitement can be felt throughout Atlantic City, and these changes resulted in a new
wave of financial investments. Most specifically, the $2 billion Revel casino project is back on schedule to open in May 2012. Revel is the centerpiece of current construction growth. Promising approximately 5,000 permanent jobs, many residents and analysts hope that Revel will halt the decline of the city’s gaming industry as a catalyst for a new prosperity. Ironically, actual casino gaming will play a diminished role at Revel and throughout Atlantic City in the future. Christie’s vision, plus the Mayor’s Task Force, will create a family- friendly destination for all ages and family groups. More multi-day rock concerts, sporting competitions and city- wide events, plus greater air service, should bring thousands more visitors to Atlantic City. Between the beach bars, burger bars and ethnic dining
outlets, casinos have jumped on the dining trend. Many Atlantic City chain restaurants and expanded shopping outlets rank at the top of their companies’ respective portfolios nationwide. Casino ownership has also shifted. Since casino veteran Dennis Gomes acquired Resorts Atlantic City in December 2010, he has introduced innovative and unconventional programs and events to attract different demographic groups. Resorts has gone “gay-friendly”, opening the city’s first gay nightclub. Other summer
events include three circus acts-including a Naked Circus show-in a new entertainment pavilion. The Trump Marina, purchased by Landry's, Inc, became the Golden Nugget in February.
More than $150 million in renovations have begun, which includes new restaurants, clubs, exterior facades and rooms. The Borgata Hotel Casino & Spa recently spent $50 million to renovate 1,600 sleeping rooms. However, some properties continue to face financial challenges and uncertainty. The Atlantic City Hilton lost its name rights from the Hilton’s main corporation, and is now called ACH. Currently up for sale, the building that Steve Wynn opened it 30 years ago as the Golden Nugget has frequently changed names and ownership over three decades.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30