When rating AC's casinos don't forget non-gaming revenues...

August 2007

ALL OF THE MEDIA HAS GUSHED OVER THE NEW RETAIL, DINING AND ENTERTAINMENT OPTIONS AVAILABLE TO VISITORS VIA ATLANTIC CITY'S CASINOS... THEY JUST DON'T USE THEM WHEN EVALUATING OVERALL, MONTH-TO-MONTH PERFORMANCE...

One of the favorite pastimes of the local media, since gaming started in Atlantic City in 1978, has been to try and determine an individual Atlantic City casino's viability and value to the overall citywide gaming market each month via their gross operating gaming numbers. This same press has been touting the new retail, dining and entertainment options available at each casino, as well as how these new additions have fueled Atlantic City's second wave of casino development. Just one minor problem, these same media and financial guru's don't include those numbers in their overall performance evaluations. That's kind of like trying to determine the performance of automobile manufacturers and purposefully leaving out cars that are red, or blue, or green. It's kind of ridiculous. Yet, these goofballs want you to take them seriously. Yes, Borgata hovers around $60 Million per month in gross gaming revenue, often tops in the city, but a third of Borgata's total gross revenue comes from non-gaming sources.

Borgata owns their "Big-name" dining outlets (they pay big fees to license the names on the marquee), but they get the revenue, and that revenue isn't counted by even the Casino Control Commission, the state agency charged with overseeing Atlantic City's casinos.

The reality is, when your local paper reports that Borgata is down 1% from the same period as last year, the numbers don't include all of the non-gaming revenue which amounts to about $20 to $25 Million, putting their gross revenues at well over $80 Million dollars, and quite possibly ahead of last year. That's a big difference in delivering the overall perception of the market.

An interesting side note to that is Tropicana, which added the much acclaimed Quarter in 2004, a collection of high-end, internationally recognized brands in retail, dining and entertainment. The difference though, between Borgata and Tropicana, is that Borgata earns the revenue produced by their outlets, while Tropicana chose to lease directly to operators, meaning the operators earn the revenue. Tropicana's plan relied on increasing the win at the tables and slots as a result of the huge crowds created by The Quarter. Well, The Quarter did its job. The crowds have been coming and it is a big success.

That has not, however, translated to a bigger win by the casino, and in fact, the numbers are down at Tropicana compared to the same time in previous years. There have been rumblings about cost-cutting layoffs which have affected the mood, cleanliness, and ability of the property to operate enthusiastically, even with the success of The Quarter. Conversely, the strategy has seemed to work well for Harrah's owned Caesars which also owns the new Pier at Caesars. The Pier's popularity has translated to more gamblers in the casino and a bigger win. Imagine what their numbers would be if they owned the stores and restaurants at The Pier? So, what's the big lesson here? Whenever possible own the retail, dining and entertainment offerings. It represents a real revenue opportunity when done right. You can't just license a big name and not deliver what the public expects. That's a recipe that will backfire for sure. But you can hire employees who are going to follow guidelines specific to that "big-name" operator. If you are going to lease out your retail offerings, better be sure the casino and hotel are primed to make a great first impression on customers.

Odds, ambience, friendliness, and cleanliness all have to be high on the "To Do" list. You remember what your mom told you about making the right "first impression."

Summer winding down? Casinos ramping up!

Get ready for an absolutely actionpacked August at Atlantic City's casinos.

Everything's on the table as the industry as a whole attempts to reclaim market share lost to the opening of slot parlors in Pennsylvania. While you never want to dip compared to the same period as the year before, factoring in new casino openings in the backyard of one of your biggest markets and the CasinoInsider has concluded the slip is almost negligible.

The biggest hit came with the grand openings of the new parlors and if that's all they can muster then Atlantic City has plenty of room to grow, and should get to the business of fueling that growth. Now, if the New Jersey State legislature can finally put to bed the prospect of slot machines at the Meadowlands to prop up the horse racing industry, then Atlantic City can really build on a solid foundation. You can't ask major corporations to invest billions of dollars on a project, only to have the rug pulled out from under them with some new gaming legislation that dramatically changes the business model.

The fact that the state is enamored with trying to save a private, dying business, tells you all you need to know about its business acumen. These brilliant minds would have been trying to prop up the Model-T even as the public rushed to buy the newer, sleeker models offered by competitors. Government has no business going into business, or intervening whatsoever in the free market so as to favor one industry over another.

They have enough problems just trying to balance a budget every year. What they should be doing is looking for ways to increase investment and making New Jersey one of the country's most business friendly states. That's a column for another day. Today is about getting your share of the cash, cars, products, and comps offered by all of Atlantic City's gaming establishments at one time or another. Summer may be drawing to a close but Atlantic City's casino's are ramping it up...for you!

Next month I'll look at what Atlantic City, and its casinos, businesses, residents, and government officials can do to make Atlantic City the number one resorts destination in the world.

Think it can't be? Then be sure to pick up a copy of the September issue of South Jersey Insider Magazine as, in addition to tackling the supposedly tough issues, we tackle the soft ones too.

Everything that's worth doing in Southern New Jersey. Until then, play smart, stay within your budget; always sign up for casino customer cards, and always try and play “maximum credits,” if you can. You can’t hit the Jackpot unless you do. And feel free to send me an e-mail if you have any questions about Atlantic City’s casinos... I can be reached at casinoinsider@acinside.com

AC HILTON
50% Slot Refund...

For new members. Sign up for a Hilton Card and earn 50% slot refund on your slot play.

Atlantic City Hilton opens 10Til nightclub...

The Atlantic City Hilton Casino Resort announced the opening of 10Til, its new, late night experience, featuring unique live entertainment every Saturday through the end of the summer. Starting at 10pm, The Hilton transforms its multi-million dollar Chairman's Club into "10Til," an upscale club with floor-to-ceiling ocean views and stylish décor, and open to the public for the first time. 10Til is located on the second floor, just steps away from the property's gourmet dining room, and the escalator which transports guests to and from the theater.

BALLY’S
Ain't Nothing Like The Real Thing - 50 Years of Motown

Celebrating 50 years of Motown in a live production show, with a seven piece band and very talented performers bringing back the sweet sounds of Motown! Enjoy the show with a classic room at Bally's Atlantic City for a song at only $209 including taxes. Show runs through September 14th.

Daily Poker tournaments

Stop into Bally’s any day in August and get in the game. Poker Tournament games available every day at the Poker Lounge at Bally’s. The Lounge comes fully equipped with 50-inch Plasma TV’s and twenty four non-smoking tables.Texas Hold ‘Em, as well as regular poker games, are played.

Tournaments start at 3pm Monday through Friday. Saturday and Sunday at 1pm. For more information call 340- 1141.

BORGATA
$300,000 Guaranteed Poker Tournament...

On Sunday, August 26th, Borgata kicks off a $300,000 Guaranteed Prize pool Poker Tournament. Buy in is $1500 plus $100. Tournament starts at 11am, so reserve your seat ASAP. Call Borgata at 317-1000.

$50,000 Poker Fridays continue...

Every Friday in August you can get in on the Poker craze and give yourself a shot at 50 large at the same time. The action starts at noon in Borgata’s brand new, perfectly posh poker room. The game is No-Limit Hold ‘Em and buyins are $250 and $30. Get your seat early as seating may be limited. My Borgata Card required to play. See the “My Borgata” rewards center for complete details.

Borgata Poker Open Kicks off September 3rd......

It's part of the now famous World Poker Tour, The Borgata Poker Open. Seating is limited, and tournament runs through September 20th. Special room rates available for Tournament Poker players. For more information call the Borgata Poker hotline 317-7412.

CAESARS
CasinoInsider calls it! Gomez takes Gatti...

Last month I laid out the scenario and it unfolded just as scripted. Arturo Gatti came out swinging against unheralded, and relatively unknown, Alphonso Gomez, who took everything Gatti threw and countered effectively.

Boxing, a sport once loved by your CasinoInsider, lacks the big name draws and compelling story lines which made it a huge spectator sport in the 70's, 80's and 90's. Gatti, was one of the few remaining "big-draw" fighters, but he's stated that he's done with fighting.

Daily Poker Tournaments

Stop into Caesars any day in August and get in the game. Poker Tournament games available every day at the Poker Arena. The Arena comes fully equipped with 50-inch Plasma TV’s and twenty four non-smoking tables.Texas Hold ‘Em, as well as regular poker games, are played.

Tournaments start at 3pm Monday through Friday. Saturday and Sunday, 1pm.

HARRAH’S
The New Pool at Harrah's Impressive...

Harrah's recently unveiled The Pool at Harrah's, a new upscale diversion designed to relax and refresh Harrah's customers. Be sure to check with the “Total Rewards” customer service representative for complete details, or to sign up for your card.

Hawaiian Luau featured on Sundays...

What's the sense of having a brand new, luxurious indoor pool and spa if you don't have a party to go along with it? Well, every Sunday Harrah's is featuring an Hawaiian Luau replete with fire-eating dancers and a three course family style dinner. Be sure to check with the “Total Rewards” customer service representative for complete details.

HOUSE OF BLUES
Great entertainment slated for summer...

House of Blues has undergone some changes recently, which has resulted in Harrah’s Entertainment taking over the Atlantic City facility. If you are a fan of the House Of Blues don’t be alarmed; the Insider has learned that the cutting edge entertainment and exclusive Foundation Room will continue, as evidenced by their entertainment lineup on page 39. Keep checking here for details as this is one item that is hot. For more information call 343-5700.

RESORTS
Daily summer slot tournaments and weekly radio broadcast...

Resorts Atlantic City will present Daily Boardwalk Slot Tournaments, and a live weekly Boardwalk broadcast with 98.1 FM WOGL (Philadelphia). The Daily Boardwalk Slot Tournaments are open to new and existing members of the Resorts Destinations Club thru August 31st. The WOGL Boardwalk broadcast takes place every Friday from 4 to 6pm through August 24th. During the weekly radio broadcast, guests will have the opportunity to answer trivia questions for a chance to spin a wheel full of sensational prizes. The radio broadcast will be hosted by WOGL DJ Frank Lewis.

For more information stop in to the promotions center at Resorts.

SHOWBOAT
Tony ‘N Tina’s Wedding...

This ton-of-fun production started in Philadelphia, working the restaurant circuit. It was so much fun and so well received it just naturally snowballed onto bigger stages like the Main Ballroom at Showboat. The event features the Philadelphia/Italian wedding of Tony and Tina, with all of the requisite South Philly family members. The end result is a roaring good time. Tickets can be purchased at TicketMaster at 1-800-736-1420.

TROPICANA

IMAX ticket stub holders get $2 off at Brulee’...

Diamond Club members get $2 Off an IMAX Ticket...

Sign up for your Diamond Club Card from Monday through Friday and get $2.00 off the regular ticket price of an IMAX movie. Then take your ticket stub to Brulee for $2.00 off any dessert.

Double cash back and double comps...

This is a pretty good deal for new card members. Double cash back and double comps. Can’t go wrong with that. Plus Tropicana card holders are eligible for all kinds of perks and promos, like discounts in the shops at the Quarter.

TRUMP MARINA
Four Play: A lotto way to win...

Every Tuesday at 7PM, four numbers will be randomly selected. Match the four numbers with the last four numbers on your Wild Card, and you could win the weekly grand prize of $5,000. At press time the Jackpot was over $170,000.

Thursdays feature Hometown Heroes...

Every Thursday at Trump Marina folks can participate in one sensational event. Hometown Heroes starts at 7pm and participants can not only win prizes for themselves, but also for anyone in attendance from their same zip code. See their Promotions Center for more information about this event.

TRUMP PLAZA
$10,000 Macy's or The Walk Gift Card Sweepstakes...

Stop in to Trump Plaza on Thursday, August 9th or Tuesday, August 21st to participate in the Play to Earn Macy's or The Walk gift cards! To enter, simply play at any slot machine with your Trump Card inserted between 8am and 8pm. For more information see the Trump Plaza promotions booth.

TRUMP TAJ MAHAL
iPod Giveaway...

Have you been wanting a new iPod but have been putting it off? Don't wait any longer. On Saturday, August 25th Trump Taj will be giving away 50 iPod's every hour from 1pm to 10pm. For more information check with the Trump Taj promotions center.

Endless Summer Cash Giveaway...

Trump Taj is red hot in August. As noted above, on Saturday, August 25th they are giving away 50 iPod's every hour from 1pm to 10pm, and then on Sunday, August 26th, they are giving away $2500 every 15 minutes. For more information check with the Trump Taj promotions center.

Trump Entertainment presents The Police on November 3rd...

Trump Entertainment will present The Police during their long awaited reunion World Tour at Boardwalk Hall on Saturday, November 3rd. The Police feature one of rock 'n rolls most prolific entertainers and singer/songwriters in Sting, and the concert is expected to sell out fast as tickets are on sale now. For tickets call 1-800-736-1420 or go to ticketmaster.com. Tickets are also available at the Boardwalk Hall box office.

$100 for new members...

New players can stop into Trump Taj anytime between now and August 15th and sign up for your Trump One card, and play slots for free, up to $100 dollars.. For more information check with the Trump Taj promotions center.

Jack Diamond is a pseudonym of a southern New Jersey, well known business marketing analyst, with over twenty five years of award winning advertising and marketing experience.