Cutbacks Growing in AC
May 10th, 2011 at 8:06:56 AM
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Breaking news:
Borgata, Trump Taj Mahal and Trump Plaza lay off table games workers amid looser regulations
Posted: Tuesday, May 10, 2011 6:45 am | Updated:
8:55 am, Tue May 10, 2011.
By DONALD WITTKOWSKI Staff Writer
ATLANTIC CITY - Three casinos have cut their
table games staff in the latest wave of layoffs following
deregulation of the gaming industry that includes the
elimination of minimum staffing requirements.
Borgata Hotel Casino & Spa laid off about 50 workers,
while Trump Taj Mahal Casino Resort and Trump Plaza H
otel and Casino made an unspecified number of job
cuts, the casinos announced Monday.
Cuts at Borgata, the Taj Mahal and Trump Plaza follow
an unspecified number of table games supervisory
layoffs last month at the Bally's, Caesars, Harrah's
Resort and Showboat casinos owned by Caesars
Entertainment Corp.
Frank Hutchinson, a Taj Mahal table games
supervisor who lost his job, directly blamed
Republican Gov. Chris Christie for the layoffs.
Hutchinson, 52, a Margate resident and 21-year
employee at the Taj Mahal, argued that job security
has all but vanished in Atlantic City's industry.
"This is all the result of Gov. Christie's deregulation
of the casino industry," he said. "This basically gives
the casinos free rein to do whatever they want. It's
accelerating. The jobs are disappearing or
evaporating at a mind-blowing pace."
Christie spokesman Mike Drewniak did not respond to
phone and email messages seeking comment. In the
past, the governor has said regulatory reform would
save the casinos money and help to revitalize the
Atlantic City economy, now mired in a four-
year slump.
Borgata and Trump Entertainment Resorts Inc. blamed
their job cuts on the weak economy and competition
from casinos in surrounding states. They also noted
that Christie's regulatory overhaul has given them
more leeway to make staffing adjustments.
"Increased regional competition and a challenging
economy make it necessary for us to continually
evolve the way that we do business," said Dave
Coskey, Borgata's vice president of marketing."
Changes that affect our associates are never taken
lightly. That's why we took the time to examine how
the regulatory changes would apply to our operations.
The changes result in an operation tha tmirrors most
other gaming jurisdictions, including Nevada." . . . atlantic city press
Borgata, Trump Taj Mahal and Trump Plaza lay off table games workers amid looser regulations
Posted: Tuesday, May 10, 2011 6:45 am | Updated:
8:55 am, Tue May 10, 2011.
By DONALD WITTKOWSKI Staff Writer
ATLANTIC CITY - Three casinos have cut their
table games staff in the latest wave of layoffs following
deregulation of the gaming industry that includes the
elimination of minimum staffing requirements.
Borgata Hotel Casino & Spa laid off about 50 workers,
while Trump Taj Mahal Casino Resort and Trump Plaza H
otel and Casino made an unspecified number of job
cuts, the casinos announced Monday.
Cuts at Borgata, the Taj Mahal and Trump Plaza follow
an unspecified number of table games supervisory
layoffs last month at the Bally's, Caesars, Harrah's
Resort and Showboat casinos owned by Caesars
Entertainment Corp.
Frank Hutchinson, a Taj Mahal table games
supervisor who lost his job, directly blamed
Republican Gov. Chris Christie for the layoffs.
Hutchinson, 52, a Margate resident and 21-year
employee at the Taj Mahal, argued that job security
has all but vanished in Atlantic City's industry.
"This is all the result of Gov. Christie's deregulation
of the casino industry," he said. "This basically gives
the casinos free rein to do whatever they want. It's
accelerating. The jobs are disappearing or
evaporating at a mind-blowing pace."
Christie spokesman Mike Drewniak did not respond to
phone and email messages seeking comment. In the
past, the governor has said regulatory reform would
save the casinos money and help to revitalize the
Atlantic City economy, now mired in a four-
year slump.
Borgata and Trump Entertainment Resorts Inc. blamed
their job cuts on the weak economy and competition
from casinos in surrounding states. They also noted
that Christie's regulatory overhaul has given them
more leeway to make staffing adjustments.
"Increased regional competition and a challenging
economy make it necessary for us to continually
evolve the way that we do business," said Dave
Coskey, Borgata's vice president of marketing."
Changes that affect our associates are never taken
lightly. That's why we took the time to examine how
the regulatory changes would apply to our operations.
The changes result in an operation tha tmirrors most
other gaming jurisdictions, including Nevada." . . . atlantic city press
May 10th, 2011 at 8:13:37 AM
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So when those short-sighted casinos get hit from every angle by dice sliders and card markers, because there aren't enough supervisors to catch them all...who will take the blame for that? Somehow I can't imagine it'll be the governor...
"I believe I've passed the age/of consciousness and righteous rage/I've found that just surviving was a noble fight...
I once believed in causes too/I had my pointless point of view/And life went on no matter who was wrong or right..." --Billy Joel
May 10th, 2011 at 4:12:40 PM
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>>This is all the result of Gov. Christie's deregulation
of the casino industry," he said. "This basically gives
the casinos free rein to do whatever they want.>>
Yeah? So? I've been an employer and I always want free rein over my employees. So would you..
of the casino industry," he said. "This basically gives
the casinos free rein to do whatever they want.>>
Yeah? So? I've been an employer and I always want free rein over my employees. So would you..
"It's not called gambling if the math is on your side."
May 10th, 2011 at 4:29:39 PM
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Quote: SanchoPanza
Frank Hutchinson, a Taj Mahal table games
supervisor who lost his job, directly blamed
Republican Gov. Chris Christie for the layoffs.
Hutchinson, 52, a Margate resident and 21-year
employee at the Taj Mahal, argued that job security
has all but vanished in Atlantic City's industry.
"This is all the result of Gov. Christie's deregulation
of the casino industry," he said. "This basically gives
the casinos free rein to do whatever they want. It's
accelerating. The jobs are disappearing or
evaporating at a mind-blowing pace."
Yeah, blame the govenor and not the fact that AC Casinos have failed to innovate. And blame the govenor, sit home, and cry about it. Don't consider trying to relocate and get a job at a booming PA casino.
What a loser.
All animals are equal, but some are more equal than others
May 10th, 2011 at 5:25:40 PM
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There may be some merit in letting some of the people go. Save money and get rid of some excess management but often there is a reason they were mandated in the first place. Also if you overwork those who remain quality degrades. Floors are too busy to rate properly, disputes get out of hand, dice teams move in quickly, women with make up start touching the cards and men with tinted contact lenses start betting heavy.
And then of course the executives will take bonuses and complain about competition or the economy or something.
And then of course the executives will take bonuses and complain about competition or the economy or something.
May 10th, 2011 at 6:34:40 PM
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From what I can see, the casino business (specifically the casino department of a resort) does not create new jobs in Nevada. The Clark County casinos employ nearly the exact number of people as they did 20 years ago when the Mirage opened. "Given free reign all this expansion has been done via automation."
May 12th, 2011 at 2:30:25 PM
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Quote: FleaStiffthe executives will take bonuses and complain about competition or the economy or something.
Posted: Thursday, May 12, 2011 12:00 am | Updated: 11:40 am, Thu May 12, 2011.
By DONALD WITTKOWSKI Staff Writer |
ATLANTIC CITY - Tropicana Casino and Resort's big-stakes table games strategy backfired in April, with one high roller taking the property for a record haul of $5.8 million.
As a result, Tropicana was the worst performer among Atlantic City's 11 casino hotels in April - a month that saw revenue tumble 7 percent for the entire industry. It was the 32nd straight month of lower revenue for the nation's second-largest casino market.
Altogether, the casinos posted $289.4 million in revenue from the slot machines and table games, compared to $311.5 million a year ago, the New Jersey Division of Gaming Enforcement reported Tuesday. Slot winnings fell 3 percent to nearly $208.6 million, while table games revenue plunged 15 percent to $80.9 million.
Lately, Tropicana has been using high-stakes table games as the centerpiece of its casino operations. Tropicana had posted higher table-games revenue in six of the past seven months, but its lucky streak ended in dramatic fashion in April.
"We ran very unlucky," lamented Mark Giannantonio, Tropicana's outgoing chief executive officer. Giannantonio disclosed that one blackjack player won $5.8 million, but he declined to release the gambler's name.
"We had the single-largest winner in our history," Giannantonio said. "If it hadn't been for bad luck at the tables, we would have had a good month."
Giannantonio denied that the risky table-games strategy had cost him his job. Last week, parent company Tropicana Entertainment Inc. announced that Giannantonio had been fired. His replacement, veteran gaming executive Tony Rodio, will formally take charge at Tropicana on June 1. "I don't think it had anything to do with the decision," Giannantonio said.
Tropicana's table-games revenue plummeted 54 percent in April to $3.2 million. In April 2010, the casino took in $7 million at the gaming tables, meaning that the lucky blackjack player single-handedly ruined Tropicana's results this year. A poor showing at the gaming tables dragged down Tropicana's total revenue in April by 20 percent, the biggest decline in the industry.
Tropicana wasn't the only casino that got burned at the gaming tables. Both Borgata Hotel Casino & Spa and Trump Plaza Hotel and Casino suffered a 33 percent decline in table games revenue. Harrah's Resort and the Atlantic City Hilton were each down more than 20 percent at the table games. Resorts Casino Hotel also was a bit unlucky at the table games. Dennis Gomes, CEO of Resorts, said two high rollers won about $1 million in a single day.
"Two guys were the bulk of it. Otherwise, our numbers would have been up $1 million," Gomes said of the table games revenue.
Resorts, though, had a 7 percent increase in slot winnings to boost its total revenue by 4 percent for the month. Caesars Atlantic City was the only other casino to post higher revenue in April, up nearly 6 percent . . . ." atlantic city press
Resorts has recorded higher revenue for three months in a row, a sign that Atlantic City's oldest casino is starting to rebound under the new ownership of Gomes and New York real estate magnate Morris Bailey. "It's all positive. The place is full and our performance for the first quarter will show a bigger improvement than most of the other places," Gomes said.
May 12th, 2011 at 3:11:15 PM
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Is it just me, or does it seem like a reality that based on all the gloomy news coming out of AC the past few years, the place is headed for ultimate doom? I've been there once, and was appalled at all the slums and bums beginning just across the street from the back of the casinos. The casinos don't appear to have done anything to help them out. Now the casinos are the problem. Time for a tsunami?
May 12th, 2011 at 3:28:11 PM
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Quote: SanchoPanzaTropicana Casino and Resort's big-stakes table games strategy backfired in April, with one high roller taking the property for a record haul of $5.8 million. As a result, Tropicana was the worst performer among Atlantic City's 11 casino hotels in April - a month that saw revenue tumble 7 percent for the entire industry. Lately, Tropicana has been using high-stakes table games as the centerpiece of its casino operations. Tropicana had posted higher table-games revenue in six of the past seven months, but its lucky streak ended in dramatic fashion in April.
It seems to me that they are running about $2 million per month higher than last year. Less a $5.8 million dollar whale haul, but factoring in the huge publicity windfall that will attract all kinds of players to that end of town, they should come out very much in the positive by the end of the year.
| Tropicana | Apr-11 | Mar-11 | Apr-10 | Mar-10 |
|---|---|---|---|---|
| Blackjack | $(1,862,827) | $2,691,072 | $1,961,149 | $1,920,571 |
| Craps | $974,231 | $1,537,309 | $916,382 | $976,846 |
| Roulette | $943,346 | $1,072,413 | $1,151,736 | $1,185,814 |
| Big Six | $105,532 | $103,402 | $99,822 | $134,073 |
| Minibaccarat | $1,234,155 | $1,882,636 | $710,000 | $333,716 |
| Other | $1,439,973 | $1,329,295 | $1,658,075 | $1,950,957 |
| Poker | $356,532 | $343,965 | $503,027 | $547,188 |
| Total | $3,190,942 | $8,960,092 | $7,000,191 | $7,049,165 |
May 12th, 2011 at 4:01:26 PM
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Congrats to mkl on his recent trip to the Trop.
May 12th, 2011 at 6:03:41 PM
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Quote: Time for a tsunami?[/qMy god, I get your point but after all the people that died in Japan, its just not funny.
IF YOU PLAY "PLAY TO WIN"
August 16th, 2011 at 3:59:55 PM
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Quote: JimbodaBimboNow the casinos are the problem. Time for a tsunami?
Now Southwest Airlines is pulling its AirTran subsidiary out of ACY:
AirTran Airways says it will discontinue Atlantic City service
By BRIAN IANIERI Staff Writer | Posted: Monday, August 1, 2011 2:36 pm
AirTran Airways will depart Atlantic City International Airport for good in January, leaving the local airport with only one primary carrier, Spirit Airlines.
AirTran has run a twice-daily route to its Atlanta hub since June 2009, when it entered an agreement with airport operators that subsidized flights that did not generate enough passenger revenue. The subsidy agreement, which provided $2.5 million in 2009 and $1.5 million in 2010, expires in September.
AirTran said in a statement Monday that it could no longer support service to the airport and three others nationwide “in light of the realities of the challenging economic environment and sustained high fuel prices.” A representative of AirTran could not be reached Monday afternoon for additional comment. Its last day of service at Atlantic City International will be Jan. 6.
The announcement Monday is a setback for the airport in Egg Harbor Township as it seeks to increase passengers and service to more airports across the country. Since 2000, Continental, U.S. Airways, Delta Air Lines and West Jet have ended service to Atlantic City.
August 16th, 2011 at 6:19:03 PM
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I'm not going to say "death knell" but I seem to recall that the airlines cut back some Vegas flights and shortly thereafter Vegas stats nose-dived.
Neither the casinos nor local government cleaned up the area and now its not worth considering the project. The casino makes the money, the crack houses, hookers and junked autos are irrelevant to the casino.
Neither the casinos nor local government cleaned up the area and now its not worth considering the project. The casino makes the money, the crack houses, hookers and junked autos are irrelevant to the casino.
August 16th, 2011 at 6:41:22 PM
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In order to save AC casinos and it's economy you have to do three things.
1. Put in a real airport. Right now you have to fly into Philadelphia and drive an hour to reach AC. In LV, you don't.
2. You have to fire most of the people that work in the casinos because they don't have customer service skills. Attitude and posturing is the norm in AC. Customer service, friendliness and manners are not. Simply sending the employees that work there back to focus group will not work. You have to fly in people to work there from other parts of the country. Either the Midwest or the West Coast would be best.
3. They have to stop running the casinos as though they are running the Parks and Recreations dept. Bring in some real marketing from Vegas.
1. Put in a real airport. Right now you have to fly into Philadelphia and drive an hour to reach AC. In LV, you don't.
2. You have to fire most of the people that work in the casinos because they don't have customer service skills. Attitude and posturing is the norm in AC. Customer service, friendliness and manners are not. Simply sending the employees that work there back to focus group will not work. You have to fly in people to work there from other parts of the country. Either the Midwest or the West Coast would be best.
3. They have to stop running the casinos as though they are running the Parks and Recreations dept. Bring in some real marketing from Vegas.
August 16th, 2011 at 6:42:07 PM
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duplicate post
August 16th, 2011 at 8:01:00 PM
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I visited AC for the first time in early June.
I liked it. That said, it is urban in the same sense as Vegas. There are street people, and there exists an obvious problem with quality of life for the actual residents of the City. Example... My wife and her sister could not find a grocery store!
I never considered anything but flying into Philly. I've always assumed that air travel directly to AC was rather irrelevant, with the major metros so close by...
I liked it. That said, it is urban in the same sense as Vegas. There are street people, and there exists an obvious problem with quality of life for the actual residents of the City. Example... My wife and her sister could not find a grocery store!
I never considered anything but flying into Philly. I've always assumed that air travel directly to AC was rather irrelevant, with the major metros so close by...
August 17th, 2011 at 2:11:08 AM
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Quote: AZDuffmanblame the govenor, sit home, and cry about it. Don't consider trying to relocate and get a job at a booming PA casino.
Mobility has been the way to go when it comes to economic downturns. That approach may not work when it is tough all over, as it is now, but gaming dealers have it better in this regard and would be well served by it
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
August 17th, 2011 at 5:05:07 AM
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It's only irrelevant if you're planning on renting a car anyway.Quote: midwestgbI never considered anything but flying into Philly. I've always assumed that air travel directly to AC was rather irrelevant, with the major metros so close by...
Philly is 60 miles from AC.
AC "International" is 12 miles from the boardwalk.
By comparison, Orlando International is about 18 miles from Disney World.
If it's not too hot, and your luggage has wheels, you could walk from McCarren to the Hard Rock. It's about 1.5 miles. Center strip is only 3 miles.
I invented a few casino games. Info:
http://www.DaveMillerGaming.com/ —————————————————————————————————————
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
August 17th, 2011 at 6:43:17 AM
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Quote: SanchoPanzaNow Southwest Airlines is pulling its AirTran subsidiary out of ACY: The announcement Monday is a setback for the airport in Egg Harbor Township as it seeks to increase passengers and service to more airports across the country. Since 2000, Continental, U.S. Airways, Delta Air Lines and West Jet have ended service to Atlantic City.
Air Tran is being pulled out of four airports:
(1) Atlantic City International (ACY),
(2) Asheville (N.C.) Regional (AVL),
(3) Quad City (Moline, Ill.) International (MIL), and
(4) Newport News Williamsburg (Va.) International (PHF).
AirTran was flying to 12 coastal cities from Virginia to Maine. In addition Southwest is taking over gates at Newark Airport to comply with a court order to increase competition at that airport because of the Continental/United merger.
Atlantic City was just a feeder to Atlanta. It was almost inevitable that they would cut out some of this duplication before they integrate the two airlines schedules. I am frankly surprised that it is just four airports.
August 17th, 2011 at 9:59:49 AM
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I went to AC for the first time in February as part of a Harrah's sponsored flight that they paid for. It was a junket type flight that obviously catered to the gambler. It seemed to me that's pretty much all the airport served anyways. If they can find other carriers to fill that need, I don't think AirTran will be a huge loss.
"One out of every four people are [morons]"- Kyle, South Park
August 17th, 2011 at 8:46:06 PM
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I thought with the opening of the 10th casino in Pa in mid September of last 2010 (The Sugarhouse) that at least slot revenue had irrevocably gone towards PA. But in the last three months the tide has been going back to NJ.
Since PA taxes slots revenue at 55% and table game revenue at 16% it did seem that PA casinos would not promote slots after a certain point. But I thought that the convenience of locating a casino near all the population centers would overshadow the lack of drive to compete with such high tax rates.
The lack of competition also means that slots are very tight in Pennsylvania.
Since PA taxes slots revenue at 55% and table game revenue at 16% it did seem that PA casinos would not promote slots after a certain point. But I thought that the convenience of locating a casino near all the population centers would overshadow the lack of drive to compete with such high tax rates.
The lack of competition also means that slots are very tight in Pennsylvania.
| Slots Only | Ratio PA/NJ |
|---|---|
| July 2010 | -20.9% |
| August 2010 | -28.8% |
| September 2010 | -19.6% |
| October 2010 | -1.0% |
| November 2010 | -1.1% |
| December 2010 | 8.2% |
| January 2011 | 7.5% |
| February 2011 | 7.6% |
| March 2011 | 9.5% |
| April 2011 | 1.3% |
| May 2011 | -0.2% |
| June 2011 | -3.7% |
| July 2011 | -11.1% |
August 18th, 2011 at 3:10:36 AM
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I would think that the headline making casino losses at Blackjack in Atlantic City would result in an increase in slot revenues there. After all, if someone reads about millions being won at blackjack in Atlantic City they may well decide to go get their share out of the casino which is nothing but a blackjack-ATM in their minds. Meanwhile, they've got a spouse or something that they had to drag along with them and while they play blackjack the dragged-along spouse is feeding the slot machines with careless abandon because they know that their partner is taking massive amounts of cash from the casino at the blackjack table.
August 18th, 2011 at 6:57:33 AM
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Quote: FleaStiffI would think that the headline making casino losses at Blackjack in Atlantic City would result in an increase in slot revenues there. After all, if someone reads about millions being won at blackjack in Atlantic City they may well decide to go get their share out of the casino which is nothing but a blackjack-ATM in their minds. Meanwhile, they've got a spouse or something that they had to drag along with them and while they play blackjack the dragged-along spouse is feeding the slot machines with careless abandon because they know that their partner is taking massive amounts of cash from the casino at the blackjack table.
It could be that, but the Pennsylvania just opened it's last major casino in a while in late September. So these last 9 months can be seen as "steady state". It may be that Atlantic City will always do better in the summer because of it's beachside location.
August 18th, 2011 at 8:48:37 PM
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The infection appears to be spreading outside the casinos:
UPPER FREEHOLD — One of New Jersey's treasured scenes tandems of broodmares and their foals, frolicking on the lush pastures of the 900-acre Perretti Farms in southwestern Monmouth County may be fading from view.
Officials at the state's largest commercial racehorse breeder said they are going out of business, with all of the approximately 400 horses at Perretti Farms to be sold off over the next two years.
Robert Marks, a spokesman for farm owner William J. Perretti, said the exit is driven by a slump in harness racehorse sales and lack of political support to keep New Jersey's racing industry competitive with other states. "It's very hard for (Perretti) to give up something he's put so much into, but the economics aren't there," Marks said. "We're selling our babies (young horses) often at a loss. We took a bath last year, and we'll take a bigger bath this year."--courierpostonline.com
UPPER FREEHOLD — One of New Jersey's treasured scenes tandems of broodmares and their foals, frolicking on the lush pastures of the 900-acre Perretti Farms in southwestern Monmouth County may be fading from view.
Officials at the state's largest commercial racehorse breeder said they are going out of business, with all of the approximately 400 horses at Perretti Farms to be sold off over the next two years.
Robert Marks, a spokesman for farm owner William J. Perretti, said the exit is driven by a slump in harness racehorse sales and lack of political support to keep New Jersey's racing industry competitive with other states. "It's very hard for (Perretti) to give up something he's put so much into, but the economics aren't there," Marks said. "We're selling our babies (young horses) often at a loss. We took a bath last year, and we'll take a bigger bath this year."--courierpostonline.com
September 6th, 2011 at 6:45:31 PM
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They couldn't even hold on for Labor Day!
Game On! and Trinity Irish Pub & Carvery close at The Pier in Atlantic City
By LYNDA COHEN, BRIAN IANIERI, Staff Writers | Posted: Monday, September 5, 2011 9:30 pm
ATLANTIC CITY — Two restaurants in The Pier Shops at Caesars closed abruptly Monday, shocking employees who left work Sunday unaware they would be jobless on Labor Day.
Employees at sports bar Game On! and Trinity Irish Pub & Carvery said they were informed Monday morning that both restaurants were closed permanently. Customers found both establishments locked with no signs indicating why there were closed.
The two are owned by Boston-based Lyons Group, which also owned Sonsie, a restaurant at The Pier that closed last year. A spokesperson for the operators of The Pier and the Lyons Group could not be reached Monday. . . .
Future ownership of The Pier remains undetermined. Earlier this year, Bank of America was granted court approval to foreclose on The Pier after mall owner Taubman Centers Inc. defaulted on the mortgage. An auction date may be set as soon as this week. acpress
Game On! and Trinity Irish Pub & Carvery close at The Pier in Atlantic City
By LYNDA COHEN, BRIAN IANIERI, Staff Writers | Posted: Monday, September 5, 2011 9:30 pm
ATLANTIC CITY — Two restaurants in The Pier Shops at Caesars closed abruptly Monday, shocking employees who left work Sunday unaware they would be jobless on Labor Day.
Employees at sports bar Game On! and Trinity Irish Pub & Carvery said they were informed Monday morning that both restaurants were closed permanently. Customers found both establishments locked with no signs indicating why there were closed.
The two are owned by Boston-based Lyons Group, which also owned Sonsie, a restaurant at The Pier that closed last year. A spokesperson for the operators of The Pier and the Lyons Group could not be reached Monday. . . .
Future ownership of The Pier remains undetermined. Earlier this year, Bank of America was granted court approval to foreclose on The Pier after mall owner Taubman Centers Inc. defaulted on the mortgage. An auction date may be set as soon as this week. acpress
September 6th, 2011 at 6:50:43 PM
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Racetracks need to have casino revenue to survive today. Either as a Racino or state funds from casinos diverted to them. I expect the
Preakness race to be moved from Pimlico in the next year or two SAD!
Preakness race to be moved from Pimlico in the next year or two SAD!
September 7th, 2011 at 9:53:07 AM
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Paco, is your tide seasonal? It looks like travel to Atlantic City heightens in the summer months as people are more apt to travel then. Make sense?
-----
You want the truth! You can't handle the truth!
September 12th, 2011 at 5:30:34 AM
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Trump Entertainment is putting up for sale the Plaza:
"ATLANTIC CITY — Atlantic City is being de-Trumped. Trump Marina Hotel Casino has been sold off and rebranded as the Golden Nugget Atlantic City. Trump Plaza Hotel and Casino is on the market. The Trump-owned Steel Pier amusement park was unloaded in August for $4.25 million. Trump’s former corporate office and a Trump warehouse are up for sale, too.
The corporate bondholders who took control of the Trump gaming empire last year in a $225 million bankruptcy buyout are acting more like real estate agents than casino owners, selling off the Atlantic City holdings piece by piece. This monumental shift is occurring at a time when Donald Trump himself says he may be too busy with other investments around the world and his reality TV show “The Apprentice” to focus on Atlantic City.
Donald Trump has been synonymous with the Atlantic City market since the 1980s. For the time being, his famous name is emblazoned on two casinos. However, Trump was rendered only a 10-percent owner of the restructured Trump Entertainment Resorts Inc. in a bankruptcy deal with bondholders led by billionaire hedge fund manager Marc Lasry of New York-based Avenue Capital Group. “I think it’s being run very properly,” Trump said, giving his approval of the company’s new management and ownership. “Marc is a good friend of mine.”
Lasry, who also serves as chairman of the Trump Entertainment board, explained that the company is concentrating on paying down its debt and has no interest in owning noncasino assets such as the Steel Pier, offices or warehouses. . . . The company is considering two options: selling the Plaza or sinking millions into the aging property to make it more competitive with its rivals. No final decision has been made, Lasry said. . . . Lasry estimated the sales price for Trump Plaza is in the $50 million to $75 million range.
The family of longtime Trump nemesis Vera Coking has put the elderly widow’s former boarding home up for sale for nearly $5 million. The building is the last piece of property not owned by Trump Plaza on the block of Columbia Place and Pacific Avenue. For years, Coking steadfastly held out while Donald Trump tried to buy her property. . . .
Longer-range plans may include spreading the Trump casino brand outside Atlantic City. Lasry said Trump Entertainment hopes to diversify by buying distressed casinos in other markets, although he declined to divulge where."--acpress
"ATLANTIC CITY — Atlantic City is being de-Trumped. Trump Marina Hotel Casino has been sold off and rebranded as the Golden Nugget Atlantic City. Trump Plaza Hotel and Casino is on the market. The Trump-owned Steel Pier amusement park was unloaded in August for $4.25 million. Trump’s former corporate office and a Trump warehouse are up for sale, too.
The corporate bondholders who took control of the Trump gaming empire last year in a $225 million bankruptcy buyout are acting more like real estate agents than casino owners, selling off the Atlantic City holdings piece by piece. This monumental shift is occurring at a time when Donald Trump himself says he may be too busy with other investments around the world and his reality TV show “The Apprentice” to focus on Atlantic City.
Donald Trump has been synonymous with the Atlantic City market since the 1980s. For the time being, his famous name is emblazoned on two casinos. However, Trump was rendered only a 10-percent owner of the restructured Trump Entertainment Resorts Inc. in a bankruptcy deal with bondholders led by billionaire hedge fund manager Marc Lasry of New York-based Avenue Capital Group. “I think it’s being run very properly,” Trump said, giving his approval of the company’s new management and ownership. “Marc is a good friend of mine.”
Lasry, who also serves as chairman of the Trump Entertainment board, explained that the company is concentrating on paying down its debt and has no interest in owning noncasino assets such as the Steel Pier, offices or warehouses. . . . The company is considering two options: selling the Plaza or sinking millions into the aging property to make it more competitive with its rivals. No final decision has been made, Lasry said. . . . Lasry estimated the sales price for Trump Plaza is in the $50 million to $75 million range.
The family of longtime Trump nemesis Vera Coking has put the elderly widow’s former boarding home up for sale for nearly $5 million. The building is the last piece of property not owned by Trump Plaza on the block of Columbia Place and Pacific Avenue. For years, Coking steadfastly held out while Donald Trump tried to buy her property. . . .
Longer-range plans may include spreading the Trump casino brand outside Atlantic City. Lasry said Trump Entertainment hopes to diversify by buying distressed casinos in other markets, although he declined to divulge where."--acpress
September 12th, 2011 at 5:54:40 AM
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Quote: SanchoPanzaGame On! and Trinity Irish Pub & Carvery close at The Pier in Atlantic City
I'm not sure if there is a difference between The Pier Shops and "the Pier" but for those who say that good weather will bring summer tourists to the "other" entertainment offerings in Atlantic City, not just the casinos I wonder how many visitors will be making trips to see boarded up restaurants?
Hey, honey. Lets go to Atlantic City for the weekend. You can stroll up and down the boardwalk looking at businesses with closed signs on them and I can lose money at blackjack.
September 12th, 2011 at 6:05:18 AM
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Quote: FleaStiffYou can stroll up and down the boardwalk looking at businesses with closed signs on them and I can lose money at blackjack.
AC had a virtual monopoly for decades. The craven money grubbing in the good years is doing them in as competition intrudes and expands.
September 12th, 2011 at 6:32:49 AM
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Quote: SanchoPanzaThe company is considering two options: selling the Plaza or sinking millions into the aging property to make it more competitive with its rivals. No final decision has been made, Lasry said. . . . Lasry estimated the sales price for Trump Plaza is in the $50 million to $75 million range.
Lasry is dreaming if he thinks someone will give him $75 million for the property.
Ceasars Inc. has 45.01% of the market this year. Trump Plaza is 4.36%. It may make some sense for Ceasars Inc. to purchase the property so they control the entire block. The DGE is supposed to keep one company below 50%. Right now the combined company would be 49.37%, but that could change to over 50% by next month.
Vera Coking was offered $1 million for her house 25 year's ago. I wonder if they will get $5 million today. It seems like she missed the boat to cash in on Atlantic City Real Estate.
September 12th, 2011 at 8:03:42 AM
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Vera Coking's house was a case in my first-year Property casebook to illustrate eminent domain. Now she isn't as famous as that woman in New London, Connecticut. There was also a great tax court case about a craps player at Resorts -- an engineer who lost a couple cool mill when they first opened, and then claimed the forgiveness of his markers was not gross income to him (court ruled it was not an enforceable debt).
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
September 12th, 2011 at 10:26:07 AM
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Quote: pacomartinLasry is dreaming if he thinks someone will give him $75 million for the property.
Ceasars Inc. has 45.01% of the market this year. Trump Plaza is 4.36%. It may make some sense for Ceasars Inc. to purchase the property so they control the entire block. The DGE is supposed to keep one company below 50%. Right now the combined company would be 49.37%, but that could change to over 50% by next month.
I wouldn't be surprised if in the end CET ends up buying Trump Plaza in a fire sale. I'm not versed in AC gaming law, but they might not allow Caesars to own that much, so in that case, they sell off Showboat to Penn National or somebody who would have interest in the property. Then Caesars could Project Linq East the whole area... either that, or they could demolish Trump Plaza and expand Caesars out that way.
The sad thing about Plaza is that it's not a horrible property. It's in a decent location and probably better off than most of the other properties (ACH, and Marina/Golden Nugget).
Monopoly street names are based on Atlantic City... beginning to be ironic...
"One out of every four people are [morons]"- Kyle, South Park
September 12th, 2011 at 10:38:41 AM
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Quote: boymimboPaco, is your tide seasonal? It looks like travel to Atlantic City heightens in the summer months as people are more apt to travel then. Make sense?
Yes, it Does, before casinos AC was a desired vacation spot. I actually saw the diving horse shortly before it was banned, Yes, I am that damn old!
September 12th, 2011 at 11:19:02 AM
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Quote: TiltpoulI wouldn't be surprised if in the end CET ends up buying Trump Plaza in a fire sale. I'm not versed in AC gaming law, but they might not allow Caesars to own that much, so in that case, they sell off Showboat to Penn National or somebody who would have interest in the property.
I doubt that CET would buy "Trump Plaza" if it had to give up Showboat. There is not that much advantage to having a property nearby.
The DGE might permit them to buy the property if it results in 49.4% ownership of the gaming market, even if that might end up being higher than 50% at a later date. I think the statute was written with some flexibility. The property is small, and they may see CET as the best chance to save the operation.
I think it would be a different story if CET tried to purchase the "Trump Taj Majal".
September 12th, 2011 at 6:44:43 PM
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Quote: pacomartin
I think it would be a different story if CET tried to purchase the "Trump Taj Majal".
Yeah, but Trump won't be selling Taj any time soon. Besides, I think Showboat could be sold, especially if Revel ever gets opened. I would think Showboat would be the small potatoes in that group, and for a casino group that wants a presence in AC (whomever it might be), it would be an attractive property.
Remember, Harrah's sold Harrah's East Chicago to keep Horseshoe Hammond, even though Harrah's was a more profitable and larger casino with a hotel at the time. They saw Horseshoe as the more viable property in the long run, as its location was better and with a new casino it would be a better opportunity in the long run. I see Trump Plaza and Showboat as the same kind of trade off. Sell Showboat high, buy Trump low and get more for the money. They COULD sell Harrah's on the Marina, but it's unlikely they would given the renovations made.
"One out of every four people are [morons]"- Kyle, South Park
September 12th, 2011 at 8:50:17 PM
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Quote: TiltpoulYeah, but Trump won't be selling Taj any time soon.
When Carl Icahn was battling for control of the Trump properties he said that basically the Taj Mahal was the only property that mattered. He very much implied that he was going to sell the other two properties as well.
The Taj actually increased it's market share (as a percentage) since all the troubles began in 2006. The market share went from 10.14% to 10.70% . The two other properties have gone from 10.63% to 8.17% (even though Trump Marina was taken over by Golden Nugget on 23-May-11).
If Harrah's purchases the Trump Plaza it might get them out of trouble with the unions. They could basically keep their whole workforce, but just spread them out into the fifth property. It would completely screw the current TP employees.
This map labelled Atlantic City 2.0 was dated in 2008. It showed a much rosier prediction with Pinnacle, Pagano, Penn National, Revel all building new casinos, and MGM and Trump expanding their holdings. Even the Dunes site is shown as a potential.
Pennsyvlania Gaming Industry coming up on it's 5th anniversary is already starting to show premature aging. The extremely high state tax on slot machines (55%) means that the casinos are trying to build up table games, but the spread out nature of the casinos, largely without hotel rooms or major entertainment venues lends itself to slots and poker over table games.
For the July-August of this year, the slot revenue is taking a serious plunge when general economic conditions are improving and gaming revenue is climbing around the country.
-17.0% : Harrah's Chester Downs
-10.7% : Parx
-7.1% : Presque Isle
-6.3% : Penn National
-4.2% : Mount Airy
-3.2% : The Meadows
+1.4% : Sands Bethlehem
+2.6% : Mohegan Sun
+8.7% : The Rivers
Not / App : Sugarhouse (only 9 months old)
September 12th, 2011 at 9:55:03 PM
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Players are figuring out probably that the slots suck and are going elsewhere for their entertainment.
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.
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.
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You want the truth! You can't handle the truth!
September 13th, 2011 at 5:01:25 AM
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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.Quote: boymimboPlayers are figuring out probably that the slots suck and are going elsewhere for their entertainment.
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.
September 13th, 2011 at 6:47:37 AM
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Quote: pacomartin
If Harrah's purchases the Trump Plaza it might get them out of trouble with the unions. They could basically keep their whole workforce, but just spread them out into the fifth property. It would completely screw the current TP employees.
I wonder how many people would actually be affected by that from the Plaza. It could end up being a PR nightmare for Caesars.
Quote: pacomartin
This map labelled Atlantic City 2.0 was dated in 2008. It showed a much rosier prediction with Pinnacle, Pagano, Penn National, Revel all building new casinos, and MGM and Trump expanding their holdings. Even the Dunes site is shown as a potential.
It's amazing how things have changed just from THREE YEARS AGO. My, how times have changed....
I still think that AC is a viable option for a casino group that would want to have a foot in a "resort destination." Atlantic City has a lot of problems getting there, and that is the FIRST thing that needs to be examined. But there are a few casino groups that could use a marquee property somewhere (i.e. Ameristar, Penn National, Isle of Capri, Pinnacle), and you could probably get some bang for your buck in Atlantic City.
"One out of every four people are [morons]"- Kyle, South Park
September 13th, 2011 at 8:54:56 AM
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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: FleaStiffGood 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.
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
September 13th, 2011 at 9:37:48 AM
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Quote: teddysYes, 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.
September 13th, 2011 at 10:10:37 AM
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Quote: TiltpoulI 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.
September 13th, 2011 at 1:14:35 PM
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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!
"One out of every four people are [morons]"- Kyle, South Park
September 13th, 2011 at 2:16:16 PM
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Quote: boymimboHonestly, 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.
September 13th, 2011 at 6:25:48 PM
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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?
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?
September 13th, 2011 at 7:51:59 PM
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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.
"One out of every four people are [morons]"- Kyle, South Park
September 13th, 2011 at 11:55:44 PM
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Sorry if someone already posted this WSJ article.
Casino wages under attack
Casino wages under attack
There's no secret. Just know what you're talking about before you open your mouth.
September 14th, 2011 at 12:13:12 PM
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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
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
September 14th, 2011 at 12:43:56 PM
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Promotions outside of Bally's about 1/3 mile from Trump Plaza.
