Another bad month in AC

Again the AC Club showed gains based on taking care of players.


http://www.pressofatlanticcity.com/communities/atlantic-city_pleasantville_brigantine/atlantic-city-casino-revenue-down-double-digits-in-march/article_f980e47e-a20a-11e2-aeda-001a4bcf887a.html?mode=jqm

revel clinging to 10th place by $600,000.... HOW is this beautiful property doing so poorly every month! really frustrating. It should be in the top 3.

I like how they're blaming it on hurricane Sandy, which was
5 months ago. I'm sure thats the reason AC is down.

to be fair, bob, i live in NJ, and the hurricane is still taking its toll. The coast got completely destroyed. The actual casinos in AC didn't get damaged, but they were the exception. it's hard to ask people to go to casinos and gamble and eat and drink when their houses have no roofs. I drove along a stretch of the coast yesterday, and it still looks like a war zone.

my house got damaged in the storm and i still can't get it repaired, because there are no available contractors to do it.

sorry, but saying "the hurricane was x months ago" is really insensitive. the recovery is going to take years, not months.

You and I both know the answers. Their attitude and comps sucked from Day 1. AC is still a tight group of players and those that tried Revel were treated poorly from the start and went back to where they were welcomed. Kevin only made it worse with his attitude, but even with him gone, it will take time to overcome the legacy in players minds he has left.

Quote: Boz

You and I both know the answers. Their attitude and comps sucked from Day 1. AC is still a tight group of players and those that tried Revel were treated poorly from the start and went back to where they were welcomed. Kevin only made it worse with his attitude, but even with him gone, it will take time to overcome the legacy in players minds he has left.

Agree with you 100 percent. It just seems like the property is a gigantic asset that is not even close to living up to its potential. All things being equal, revel should be a market leader. And it's not only not a leader, it's fighting to stay out of last place.

Quote: sodawater

to be fair, bob, i live in NJ, and the hurricane is still taking its toll. The coast got completely destroyed. The actual casinos in AC didn't get damaged, but they were the exception. it's hard to ask people to go to casinos and gamble and eat and drink when their houses have no roofs. I drove along a stretch of the coast yesterday, and it still looks like a war zone.

my house got damaged in the storm and i still can't get it repaired, because there are no available contractors to do it.

sorry, but saying "the hurricane was x months ago" is really insensitive. the recovery is going to take years, not months.

Sorry for your loss, but this is 5 years of negative revenues. Sandy is an excuse because they lost so many players to MD, PA, NY and CT over the years and all that was left was the dedicated overnight players.

One of my good friends is a bartender at Caesars and is in the same shape as you with his house. But he would tell you AC created its own problems with trying to keep profits up in a declining market by not investing in it.

That is the only decision left, to milk properties like CZR has done with Ballys or to invest like a revel has done. 2012 results show that the harvest theory is the right decision.

.

Quote: sodawater

to be fair, bob, i live in NJ, and the hurricane is still taking its toll. .

So all those people in that small area are keeping the casinos
down? Really? I find that hard to believe. AC was hurting long
long before the hurricane.

Oh, I agree with both of you that the hurricane isn't the main reason AC is doing badly. I am just saying it's insensitive to talk about how many months it's been since the hurricane and act like the intervening time is supposed to have fixed it.

AC is doing bad because of the competition nearby first and foremost, and then the economy. I'd say the hurricane is a minor factor, but that minor factor isn't going to be fixed in 6 months.

Quote: sodawater

Oh, I agree with both of you that the hurricane isn't the main reason AC is doing badly. I am just saying it's insensitive to talk about how many months it's been since the hurricane and act like the intervening time is supposed to have fixed it.
.

Fixed or not it has little to do with the casinos failing,
yet they always mention it like its a factor.

sodawater,

Are there still a lot of people in your situation, roof damaged and can't be fixed because of a lack of contractors?

I have a friend who is usually a storm chaser, he follows the storms and his company does roof repair.

He is based out of Ohio, but travels all over the US to work.

I could see if they can send some people your way.

Just from talking to friends, it seems like a common situation here. Companies don't want to take on 4-figure jobs when there are 6-figure jobs to do.

Quote: Boz

You and I both know the answers. Their attitude and comps sucked from Day 1. AC is still a tight group of players and those that tried Revel were treated poorly from the start and went back to where they were welcomed. Kevin only made it worse with his attitude, but even with him gone, it will take time to overcome the legacy in players minds he has left.

Couldn't agree more; they lost my business in the first three months they were open. With the snotty attitude.

Quote: EvenBob

Fixed or not it has little to do with the casinos failing, yet they always mention it like its a factor.

The casinos and the Boardwalk were saved by the huge dunes installed a few years ago, blocking ocean views from street level. Sodawater is spot on about the devastation. It extends all the way up the coast to the real Sandy Hook. Much of the beach towns around Point Pleasant, for example, remain covered by sand. Jersey barriers and manned police cars stand guard. Not exactly conducive to much tourism, either. And tourists, as well as local residents, used to be an important target audience for the casinos.

Sodawater: tradesman like carpenters, roofers, electricians and plumbers from slightly inland tell me that they still have tons of work around their regular places like Lakewood and Freehold and are leaving the shore areas to newbies and itinerants.

Quote: EvenBob

Fixed or not it has little to do with the casinos failing,
yet they always mention it like its a factor.

Yeah, that's because it's a factor. It cost NY and NJ residents a shitload of money. They're now not spending that money gambling. AC was down before the storm, but saying that the storm hasn't caused further damage is pretty silly.

It's a lot like how the economy was bad and worsening on January 19th, 2009, and then.....

Quote: rdw4potus

Yeah, that's because it's a factor. .

What was the excuse for poor business before Sandy, then?
AC is epic fail, it sucks, its lame. Could that be the reason?

Have you ever BEEN to the AC casinos?

I have, about 25 years ago.

Very nice...then.

Quote: MrV

Very nice...then.

In 1988, yeah. In 2013, not so much.

I've been to the Revel several times, most recently this past weekend. IMHO, the Revel suffers from an identity problem. It's stuck between trying to be a nice hotel/resort and a gaming center. From a personal standpoint I can tell you the room I stayed in was one of the nicest I've been in. Modern feel, huge window to the ocean and the Ipad type device that is available in the room complimentary was a real nice touch. However, to get from my room to the casino floor , I had to take the elevator to the 6th floor, then take two escalators. If there was a quicker way, there was no way for me to know it since there was not one sign even indicating which floor the gaming was on. Could be they figure you are smart enough to figure it out, but it just didn't have the feel of funneling you into the money-spending area that I would think casinos strive for. Another logistical issue is that while it is on the boardwalk, it requires significant walking to reach from any of the other casinos. I'd imagine that discourages many of the seniors who travel to AC from stoping in unless they specifically planned to visit the Revel.

I think the bottom line is many who run casinos fall into 2 categories. Those whom can't and those whom don't want to do anything about it. Owning those casinos is a way to make sure they don't compete with others they own. AC is taking it for the team. Yes other factors such as Sandy come into play now, but they are secondary to neglect.

I agree with you GTS Revel was placed in poor real estate and would have been better off tearing down some massage parlors. Perhaps it was thought of to be too expensive land.

Quote: EvenBob

Quote: rdw4potus

Yeah, that's because it's a factor. .

What was the excuse for poor business before Sandy, then?
AC is epic fail, it sucks, its lame. Could that be the reason?

LOL. Giant recession, competition from other states, lack of Revel;-)

You want action. Here is a grand opening Boardwalk style:
(Were the feral cats really scared off?)
Police chase ends at Margaritaville in Atlantic City
A Pennsylvania man was arrested Wednesday night after leading Atlantic City police on a chase onto the Boardwalk and then into the newly opened Margaritaville. Officer Josh Vadell saw the man driving erratically on Pacific Avenue at South Carolina Avenue shortly after 10 p.m., Lt. Ed Brady said. The driver — later identified as Jesus DeJesus, 40, of Reading, Pa., — refused to stop, and at one point went into the ShowBoat’s porte roche the wrong way, according to the report. DeJesus then continued on, eventually going onto the Boardwalk at States Avenue.
“By this point he had two flat front tires,” Brady said.
He went west on the Boardwalk for a few blocks, then ran out of the car by Resorts and ran onto the beach at Margaritaville. Officer Heidi Clayton attempted to arrest him and was assaulted. Then K-9 Officer John Devlin and his partner, Clancy, arrived on the scene. Clancy was able to take DeJesus into custody. acpress

Talking about bad months, the downward plunge continues:
"Atlantic City’s dozen casinos saw gross operating profits fall by 64 percent in the first quarter, regulators said Wednesday. The industry posted a $42 million gross operating profit during the first three months this year — far below the same period last year when profits were $114 million, but an improvement from the fourth quarter, when the industry took a nearly $19 million operating loss due to Hurricane Sandy.

Revel, which has been open for only a year and just emerged from bankruptcy, posted the highest gross operating losses of nearly $41 million during the first quarter, according to figures released Wednesday by the New Jersey Division of Gaming Enforcement. Without Revel, the industry’s gross operating profits netted $82 million, still 28 percent off its performance last year. . . . Revel emerged from Chapter 11 bankruptcy protection Tuesday under the new ownership of its lenders. The bankruptcy reorganization reduced Revel’s debt from about $1.5 billion to $272 million, removing much of the financial burden that threatened the casino’s survival. Hartmann leads the new executive team brought in by lenders to oversee Revel’s reorganization. . . .

In addition to decreases in profitability, the industry had a nearly 8 percent drop in net revenue, nearly 2 percent decrease in room revenue and 12 percent downturn in casino revenue, according to the gaming enforcement division. At the same time, entertainment and other sales at casino hotels increased by 7 percent, to $38 million. Third-party sales — or revenue derived from independently operated restaurants, stores and other entities inside casino hotels — also increased by 33 percent, to $56 million. The rise coincides with the opening of Revel, where most of the retail establishments are operated by third parties. Nongambling revenue continues to improve, with luxury taxes over the past 12 months growing by 13 percent to end at $36 million, regulators said." acpress

Quote: SanchoPanza

Police chase ends at Margaritaville in Atlantic City

I was there! Saw police cars racing down there but had no idea what happened. We thought someone got shot or something more exciting than what really happened.

Speaking of Atlantic City, seemed like a ghost town. Stayed at Trump Plaza but it was deserted (although it was mid-week). Very sad. Will probably get worse once online gambling starts in NJ. It may increase casino revenue, but will probably make AC into even more of a ghost town. Seems like some of the weaker properties there will probably end up shutting down.