Cutbacks Growing in AC

Quote: FleaStiff

Good idea. Unfortunately, if one goes that route, it can mean you increase your visitor numbers but don't do much for the bottom line. The problem is that a Pennsylvania casino can retaliate fairly easily and cheaply. A slight increase to a Pennsylvania casino's comp budget can mean those expensive buses run half empty.

Yes, and PA is already being aggressive with buses. There was that guy from Scranton on SSDI who was taking the bus to Mt. Airy every day, netting $30 in coupon each time? Nice second income...

Quote: teddys

Yes, and PA is already being aggressive with buses. There was that guy from Scranton on SSDI who was taking the bus to Mt. Airy every day, netting $30 in coupon each time? Nice second income...

The buses cost $25 in cash, and they give you $30 in slot play on penny machines. If you play through your money one time you are lucky to break even over the long run.

I met a couple who was trying to manipulate the system to get a free commute into New York city, but it was an incredibly long day since casino buses do not travel at the same hours as commuter buses.

Quote: Tiltpoul

I wonder how many people would actually be affected by that from the Plaza. It could end up being a PR nightmare for Caesars.

Ceasars Inc. has the historical association with The Plaza. They were the company that brought Donald Trump into Las Vegas as a cost and risk sharing agreement. They may not want to purchase the property at any price. But as we saw with Planet Hollywood, it is difficult to ignore property that is contiguous to their present real estate holdings.

I don't see how it could be a PR disaster for Ceasars. If they keep their employees by spreading them around a fifth property, and the former employees of Donald Trump all lose their jobs.

Donald Trump was testifying against Carl Icahn last year, that if Icahn took over his properties that people would lose their jobs because Carl won't invest in the casinos. They have all that on videotape and in writing. Now two years later, Trump wins over Icahn, and his company sells 2 out of 3 casinos and most of those people no longer have jobs.

I would think that the Democratic Party would pay good money to have the Donald continue his campaign for the president. At least Mitt Romney can claim he created jobs when he was in business.

Quote: pacomartin

Donald Trump was testifying against Carl Icahn last year, that if Icahn took over his properties that people would lose their jobs because Carl won't invest in the casinos. They have all that on videotape and in writing. Now two years later, Trump wins over Icahn, and his company sells 2 out of 3 casinos and most of those people no longer have jobs.

Which of course begs the phrase "You're Fired!" to be printed on every newspaper and webpage headline!

Quote: boymimbo

Honestly, if I was AC, I'd be throwing everything I had at Pennsylvania. Extremely loose slots. Free buses, giveaway, Pennsylvania resident discounts, everything possible to get the business back.

The vast majority of the population of New Jersey is closer to a PA casino than to Atlantic City. It is 83 miles from Chinatown in Manhattan NY to a Pa casino, and at least 45 additional miles to get to Atlantic City.

Last months slot revenue divided by the population of PA (not counting visitors from other states was $18.36 for the month. So a big percentage of the take is from people going to a casino for a few hours. Driving distance is probably the only consideration.

But PA slot revenues are already starting to crest. With competition from Ohio and Aqueduct in Queens Borough, they might fall considerably.

I think nationwide gambling has become an Option/Vice of Convenience. No longer is it trek to Las Vegas for the Vegas, Baby atmosphere of guzzle booze, grab a few guys you happen to encounter in the casino and drag them to your room, gamble some, eat lots, drink lots more... and then go home to your husband complaining of tight slots and neglecting to tell him about all the men and booze. The ultimate may be still be Vegas but so much is available locally or regionally that while Vegas connotes an ultimate experience, just about any casino offers a sufficiently attractive alternative. The women may not be quite as daring, the men may not be quite as young and handsome or quite as rich, the restaurants may not be quite as gourmet, but its close by and that is enough.

Vegas used to be the only place. Then Atlantic City opened and suddenly there were two places. Now... (insert here your favorite analogy such as swinging a dead cat) and there is a casino right down the block. And if its not that close, well all you have to do is blink your eyes and it will be there tomorrow.

People talk about the ultimate experience and cry out Vegas, Baby! Vegas! but they are going to the local casino that is but a short trip away and offers pretty much all they really need.

Build a Mega Casino Center in Miami? The Seminoles are already on the warpath about that but it seems to be what happens: open a casino and someone opens one that is going to draw your players away from you by either being better or being closer. Capitalism at its best? or worst?

Quote: FleaStiff

People talk about the ultimate experience and cry out Vegas, Baby! Vegas! but they are going to the local casino that is but a short trip away and offers pretty much all they really need.

I would disagree, kind of. I think Vegas survived (sort of) the casino expansion into other states by providing something you can't get anywhere else... a 24/7 environment where you can do what you want, when you want. Further, Vegas is focusing more on ultra lounges and the party, rather than the gambling. High-end restaurants and high-end shopping all in one area. Obviously, gaming revenues are less than the total of everything else.

Part of Atlantic City's problem is that a "reinvention" wasn't really entirely a reinvention... more of a Vegas lite scenario. Plus, it came about 10 years too late, which didn't help matters either. People don't go to Atlantic City for an experience, they go to gamble or see the ocean. Sadly, AC could have, at one time, capitalized on something... I'm not sure that it's too late, but it better happen fast or else three or four casinos will wash up, and all you'll have is Borgata, Taj, maybe Tropicana and the Caesars properties.

Sorry if someone already posted this WSJ article.

Casino wages under attack

Here's one that doesn't have so many hoops to navigate:

ATLANTIC CITY — The union representing thousands of Atlantic City casino hotel workers brought the nation’s second-largest gambling market to its knees with a 34-day strike in 2004.

Now the relationship between workers and casino operators is reaching another boiling point, with labor contracts for nine of the city’s 11 casinos expiring Thursday and no talks scheduled this week.

Still, the head of Local 54-Unite HERE insists he’s not ready to recommend that members prepare for another stoppage, which could dirty the state’s revitalization plans for Atlantic City, led by Gov. Chris Christie. “The economy in Atlantic City is extremely fragile at this point and something like a strike could be devastating,” said Bob McDevitt, the union president.

Other employee unions in the state have been losing ground, but Local 54 still has clout in Atlantic City, with 14,000 members including bartenders, cocktail waitresses, housekeepers, cooks, and other service employees. . . .

McDevitt said the casinos are in general seeking $3 per hour in benefit givebacks on average $12 hourly wages. “That’s 25 percent in givebacks. We’re hopeful management will come to its senses. There’s a question as to how much damage the Atlantic City brand can withstand in a strike, because tourists from outside the state (have) more casino options,” he said.asbury park press

Promotions outside of Bally's about 1/3 mile from Trump Plaza.