Atlantic City Say It's Increasing Comps

Atlantic City casinos rely on increasing comps to lure in gamblers
By DONALD WITTKOWSKI Staff Writer | Posted: Saturday, October 15, 2011 10:30 pm

ATLANTIC CITY — Cruises, posh suites and exclusive box seats at sporting events. Cars, shopping sprees and private parties. Turkeys for Thanksgiving and hams for Easter. And much, much more.

In the gambling world, these are the “comps” that casinos give to their customers to reward them for their business and loyalty. Nevada’s casinos began showering customers with complimentary gifts when legalized gaming began there in 1931. Comping is an equally important part of Atlantic City’s casino scene and in other gaming markets across the country.

The good news for gamblers is that Atlantic City’s casinos are becoming even more generous with their giveaways. As gaming competition has grown in Pennsylvania and other surrounding states, the slumping Atlantic City market is increasingly using the power of the comp in the fight for customers.

“The Atlantic City casinos are spending more on their customers with comps and other offerings than ever before,” said Joe Lupo, senior vice president of operations at Borgata Hotel Casino & Spa.

Casinos consider comping as a way of “reinvesting” in their customers. The idea is simple: If casinos give something to the customers, then the customers will return the favor by spending more of their money at the slot machines and gaming tables or in the casinos’ restaurants, bars, nightclubs, retail shops and spas.

Atlantic City’s 11 casinos spent nearly $1.7 billion for comps in 2006, when the market peaked at $5.2 billion in gross gaming revenue. Comp spending on a dollar basis has declined in each year since then. In 2010, comp spending amounted to about $1.3 billion, while gross revenue from slot machines and table games came in at $3.6 billion.

However, comp spending as a percentage of gross gaming revenue has increased during the same five-year span, meaning that the casinos are actually more charitable now with their customer freebies. The so-called reinvestment percentage for comps has climbed from 32 percent in 2006 to nearly 38 percent in 2010 and almost 40 percent through July of this year, figures compiled by Borgata using data from New Jersey’s Casino Control Commission and the Division of Gaming Enforcement show.

Measured as a percentage of total casino revenue — from gaming and nongaming sources — the rate of comps in Atlantic City rose from almost 26 percent in 2006 to 27 percent in the first six months of 2011, analysis of the data shows. . . .acpress

The trouble with AC is they just don't have any customer service skills.

Quote: SanchoPanza

ATLANTIC CITY — Cruises, posh suites and exclusive box seats at sporting events. Cars, shopping sprees and private parties. Turkeys for Thanksgiving and hams for Easter. And much, much more.

Whats that smell? Oh, its desperation.

Never mind..

Quote: EvenBob

Whats that smell? Oh, its desperation. Never mind..

What surprises me about AC is how unrelentingly the bad news comes month after month. The drop started well before the recession (in slots only) as Philadelphia racinos opened, and continues to get worse every single month.

There must be some politicians that really detest gambling in NJ. You would think by now they would open at least a slot parlor in Northern NJ, to stop the $billion flow into other state's coffers.

Since Table Games more or less held there own for the first few years, some analysts said they should concentrate on that point as their strength. But now the drop in table games is going worse than slots (as a percentage).

Year	Slots ($bn)	Table Games ($bn)	Slots	Table Games
2006	$3.80	$1.41	0.0%	0.0%
2007	$3.46	$1.46	-8.9%	+3.0%
2008	$3.13	$1.41	-9.6%	-3.0%
2009	$2.72	$1.22	-13.1%	-13.5%
2010	$2.48	$1.09	-9.0%	-10.9%
2011	$2.31	$0.97	-6.7%	-10.4%
Drop since 2006	($1.49)	($0.44)	-39%	-31%

The 2011 numbers are a projection based on first 9 months of data.

PA slots for the last 12 months were $2.37 billion.

Quote: pacomartin

What surprises me about AC is how unrelentingly the bad news comes month after month.

That shouldn't come as such a surprise from a city that not only fails to practice customer service, but that also fails to want to protect its customers. One startling result: 12 casino-related homicides this year.

Police returned to patrolling casino parking garages Thursday in Atlantic City against the wishes of the resort's mayor.
Posted: Friday, October 7, 2011 1:00 am | Updated: 6:44 am, Fri Oct 7, 2011.
By EMILY PREVITI and LYNDA COHEN Staff Writer |

ATLANTIC CITY - Police went back on patrol in casino parking garages Thursday against the wishes of some members of local law enforcement and against the orders of Mayor Lorenzo Langford. In a decision released Thursday, Atlantic County Prosecutor Ted Housel asserted Atlantic City Deputy Police Chief Ernest Jubilee's authority in ordering the increased patrols 10 days ago, in the wake of the second fatal carjacking in the resort in the past 16 months.

State officials and legal analysts supported Housel's decision. But Langford said he was not done fighting the prosecutor's decision to void his earlier order to stop the patrols. "I suspect that this matter will end up in court for a declarative judgment as to whether (the order) is germane to ‘policy' or akin to ‘day-to-day operations.' Whatever the court ultimately rules, so be it," said Langford, who ignored questions about whether he actually intended to initiate court proceedings.

Gov. Chris Christie, who has sparred publicly with Langford for months over state intervention in the resort, called Langford's actions "rash and irresponsible" in a statement. . . .

The carjacking Sept. 15 that claimed the life of a Middlesex County man was the only homicide of a dozen in the city so far this year linked to a casino, Langford wrote Thursday in an email. "As concerned as I might be for tourists who come to this town, my first concern is for the residents in the neighborhoods," Langford wrote. acpress[/]

That article says this was the only homicide link to a casino this year...

Atlantic City has become a sick joke.

When casinos were first being talked about, in the 70's, the promise was that it would revitalize the town, gentrify it.

Ha!

It's still a no-man's-land ghetto a stone's throw away.

But, it can be saved, and brought back from the brink.

It would involve marketing Atlantic City as a world class vacation site.

It will require major urban renewal, and destruction of substandard housing.

A new attraction, preferably a major Disney theme park, and an upgraded airport capable of handling traffic like in Las Vegas would be required as well.

I just don't see it ... but just maybe ...

I go to AC once a month. Last month i went twice. I stayed at the Showboat the first time, then Caesars. When I was at Caesars, I walk all around the outlet center that's at the end of the AC Expressway. It was busy and I felt safe and I imagine the other customers did too. I didn't notice any extra security for this area and it's outdoors and open to the public and just a stone's throw away from what some would call a no-man's-land ghetto.

I've also walked up and down the boardwalk at all times of night and all seasons of the year. I've never felt put upon by pan-handlers even though the homeless are there. I've never felt unsafe. At the North end of the boardwalk, the construction of The Revel is continuing. It's freakin' massive!! When it opens in May or June, it's going to rock! I took some pictures, I'll try to attach one before I'm done with this post.

I haven't really noticed an uptick in comps. I hope it's true though. I really like spending weekends there. I would like to get one of those ocean facing balcony rooms. I guess i'll have to gamble a little more to deserve that though. I know the crappy revenue numbers don't lie but every time I'm there, the casinos are hustling and bustling with people, some drunker than others but overall everyone is having a real good time. A typical weekend in AC is certainly more crowded than Las Vegas during Superbowl weekend and that's supposed to be a big weekend for Vegas.

I don't typically defend "cities" from criticism but the whole "AC is a ghetto" meme is a bit overplayed. In many cities, a drive up Marlin Luther King, Jr. Blvd. would have you checking the locks on your doors, but in AC, I could see myself living on that street. Sure, some parts suck but I think AC is much better off today than it was in 1970.


This picture doesn't convey the scale of the Revel, I should have had someone stand in front. It's going to be big, figuratively and literally!!

But will Revel turn things around for Atlantic city? It seems like it will not stop PA from overtaking AC, but just steal from the aging casinos already there.

Year	Slots ($bn)	Table Games ($bn)
NJ 2006	$3.80	$1.41
NJ 2007	$3.46	$1.46
NJ 2008	$3.13	$1.41
NJ 2009	$2.72	$1.22
NJ 2010	$2.48	$1.09
NJ 2011	$2.31	$0.97
PA last 12 months	$2.37	$0.58

Quote: s2dbaker

...This picture doesn't convey the scale of the Revel.

To say it will be a monster is putting it mildly.

Perhaps one of these pictures will do better justice:

This perspective, taken from the boardwalk in front of Taj Mahal (the white buildings), shows that the top of the Revel hotel in the background (which wasn't even topped off at this point) is going to be much taller than ShowBoat (the beige building). I shot this one myself.


Here's an ocean view that REALLY puts it in perspective. Note ShowBoat's height (or lack of it) on the left edge. I don't know if this is a photo or a touch-up or fully artists rendition, but the purple sky is kinda odd. Then again, I think purple is Revel's color.