Respondents to our latest online poll are confident Internet gaming will be legalized in the US, and think it will start with poker then extend to casino games.
94.4 percent say I-gaming will be legalized
83.3 percent say poker first, then casino gaming.
11.1 percent say both poker and casino gaming at the same time.
5.6 percent say legalization will stop at poker
50 percent say I-gaming would help brick-and-mortar casinos
33.3 percent say it would hurt
16.7 percent say it would neither help nor hurt
NEW POLL: What’s your take on the future of Atlantic City? Vote and comment here
In most cases, the gaming industry is a perfect storm, dealing with the unemployment, general economic conditions and too many new gaming jurisdictions; that have devastated great gaming resorts like Atlantic City.
With PA’s Eastern casinos now estimated to reach $1.3 billion in 2010 and Atlantic City casino win down to $3.5 or 3.6 billion, gaming growth is not the solution to Atlantic City’s problem. And I don’t understand how 2 new small casinos bring anything new to the equation, in the way of attractions on non gaming amenities, other than the Hard Rock’s museum.
There is no question that Atlantic City has more casino capacity that is sustainable in the near term and needs to expand its marketing efforts to attract more convention and corporate meeting business, that will allow mid week room and function revenues to offset some of the casino revenue decline. While at the same time reducing the substantial amount of complimentary rooms, food, entertainment and promotional spending; that can equate to 30% or more of a casino’s win. With 20,000 casino and non casino rooms, (50% more than Philadelphia) Atlantic City can compete with many meetings that now choose New York, Boston, Washington, and Chicago. Unlike Las Vegas, America’s number one convention destination, Atlantic City is very convenient to the Eastern seaboard cities, that are home to most major corporations and associations, and with the cost concerns facing business today, might choose a convenient destination that does not require air transportation. Atlantic City can offer room rates that are less than half that of competing Eastern destinations and still double or triple the $40 to $50 mid week rates now being offered to the general public, along with various casino inducements. And unlike casino win, a $50 or $100 increase in room rate all reaches the resort’s bottom line. Most Eastern corporate and association headquarters can reach AC by VIP busses, limousines or train, and for those that insist on air travel, AC International has low cost service available now from Boston, Atlanta, Orlando, Tampa, Ft. Lauderdale and Ft. Myers, with new service soon from Chicago. Our Eastern competition, all have a different problem than AC, and that is the tremendous mid week demand from business travelers, that elevate convention room rates to the $200 to $400 (and up) range. And lets not forget that the customers attending conventions, trade shows, association events and corporate business meetings, aren’t paying for their own rooms, meals, transportation or some entertainment, and they are more affluent than AC’s current mid week bus or discount hotel visitor. So here is a group of potential mid week customers, with no expenses for their trip, and deep pockets of disposable income for gaming and retail, plus the AC hotels will greatly benefit form profitable function and convention room rentals.
The AC resort industry has a unique opportunity, with Southwest Air’s arrival, at Pomona Airport. AC has 20,000 rooms and there are that many more in other South Jersey shore communities. We have missed the boat in years past, by not preparing for the inevitable arrival of casino gaming in our customer markets, Pennsylvania, New York and New Jersey (north and central). However the good news for Atlantic City, is that Southwest ( the major carrier to Las Vegas), offers affordable air service in North America and doesn’t penalize customers for flight changes or charge for checked luggage; plus the company has demonstrated that it can be profitable without first class fares and cancellation fees. It is also the Vegas’s carrier, that added flights and capacity during the recession, as other carriers cut back on Vegas flights and switched others to commercial destinations, and their higher seat mile revenues.
New air service, from Southwest’s formidable eastern and mid-western cities and new convention and meeting business can fill empty rooms and restaurants mid week, with higher paying cash customers.
AC needs to jump on the Southwest bandwagon, and offer some of that $30 million saved, from previously subsidizing NJ’s racing industry, and enter joint promotions with SW, if they agree to add Atlantic City service from some of their extensive route system East of the Mississippi River.
AC needs to come up with a great and new opening number, and convince the airline and the traveling public about our reborn resort. A comment from someone who was saying that about Atlantic City (1976 to 1978), when we were passing the statewide referendum, legislation and opening Resorts International.
Steve Norton
nortongaming@aol.com
317-650-8789