You know your property isn't that attractive when you can't attract buyers at fire sale prices. That's what happened last week when Atlantic City's Revel Casino didn't attract any qualified bidders at its bankruptcy auction. Bad bad news. According to Caesars Entertainment's CEO, not attracting a bidder, "suggests that even at a de minimis price, people are finding it hard to imaging they can make money operating the Revel." That about sums it up for the Revel and likely for a good portion of the current crop of Atlantic City casinos. As stated in previous posts, here and here, Atlantic City is in big trouble.
As a result, the Revel is scheduled to shut its doors on September 10th. Stories on this topic can be found here and here. RIP Revel, it was nice to know you...
Showing posts with label Atlantic City. Show all posts
Showing posts with label Atlantic City. Show all posts
Tuesday, August 12, 2014
Sunday, July 13, 2014
Atlantic City Casinos Biting the Dust
It appears the Atlantic City gambling establishment is reacting to Governor Christie's warning to shape up quickly. As was predicted in an earlier post, how Atlantic City will deal with this warning is to retrench and close up some properties. That is now happening. The Atlantic Club casino closed in January and the Showboat casino will close in August. It is reported that the Trump Plaza casino will close in September. If the Revel casino can't find a buyer to rescue it and it closes, that would leave Atlantic City with just two-thirds of the major casino properties it started the year with. Losing one-third in two-thirds of a year is a huge hit to the Atlantic City economy.
To save Atlantic City, a game changer is needed immediately. Sports betting may be that game changer. Now the raw revenues from sports betting will not be sufficient, but the fact that something new and unique to Atlantic City is in play will help draw casino patrons from competing jurisdictions like New York, Massachusetts and Pennsylvania. It also helps New Jersey compete with sports betting that is currently underway in Delaware.
Can casino gaming in Atlantic City survive? Time will tell.
To save Atlantic City, a game changer is needed immediately. Sports betting may be that game changer. Now the raw revenues from sports betting will not be sufficient, but the fact that something new and unique to Atlantic City is in play will help draw casino patrons from competing jurisdictions like New York, Massachusetts and Pennsylvania. It also helps New Jersey compete with sports betting that is currently underway in Delaware.
Can casino gaming in Atlantic City survive? Time will tell.
Wednesday, March 27, 2013
Atlantic City Casinos To Add Fantasy Sports Games For Money
Sticking a finger in the eye of the sports leagues that have won the first legal decision to prevent the State of New Jersey to offer sports betting, New Jersey is allowing casinos to offer daily fantasy sports games as an alternative. According to the New York Times article, the state’s Division of Gaming Enforcement published regulations establishing standards for casinos to offer fantasy sports tournaments
for money. Even though players will pay money to play and can win cash, New Jersey won't regulate these games
as gambling, dovetailing with federal law that distinguishes between
fantasy sports and sports gambling.
From a gaming industry perspective, these games are not envisioned to be money makers for the casinos on their own. They will be used as marketing tools to help attract players that will hopefully stay and play other games, eat at the restaurants, etc. From New Jersey's perspective, this may open another front in the battle over sports betting, showing the court that what the sports leagues are doing with fantasy sports really isn't all that different than sports betting. Don't be surprised if the casinos expand the offering to include college sports in addition to professional sports, hoping the NCAA tries to legally stop the activity. That may be the legal trap being set by New Jersey.
The Times article does quote how this could be good for casinos as people will feel comfortable online with a trusted entity. The person who said that from a online gambling advocacy group obviously doesn't know anything about fantasy sports. Over 30 million Americans play fantasy sports now, predominantly online, with large players such as CBS and Yahoo. They aren't going to switch to some Atlantic casino website because a state government says it is OK. The federal government back in 2006 said it is OK.
Don't read too much into this development as a great positive for fantasy sports. Think of this development as another chess move in the battle for sports betting in New Jersey. If New Jersey wins, that is the big development as that will allow any state to offer sports betting if it desires.
From a gaming industry perspective, these games are not envisioned to be money makers for the casinos on their own. They will be used as marketing tools to help attract players that will hopefully stay and play other games, eat at the restaurants, etc. From New Jersey's perspective, this may open another front in the battle over sports betting, showing the court that what the sports leagues are doing with fantasy sports really isn't all that different than sports betting. Don't be surprised if the casinos expand the offering to include college sports in addition to professional sports, hoping the NCAA tries to legally stop the activity. That may be the legal trap being set by New Jersey.
The Times article does quote how this could be good for casinos as people will feel comfortable online with a trusted entity. The person who said that from a online gambling advocacy group obviously doesn't know anything about fantasy sports. Over 30 million Americans play fantasy sports now, predominantly online, with large players such as CBS and Yahoo. They aren't going to switch to some Atlantic casino website because a state government says it is OK. The federal government back in 2006 said it is OK.
Don't read too much into this development as a great positive for fantasy sports. Think of this development as another chess move in the battle for sports betting in New Jersey. If New Jersey wins, that is the big development as that will allow any state to offer sports betting if it desires.
Tuesday, August 28, 2012
Casino Screws Up, Points Finger
Last April, players at a mini-baccarat game noticed the same sequence of cards being dealt. Being smart, they started upping their bets. When the casino finally figured out what was going on, those players had won $1.5 million. Wow. The casino of course thought the players were cheating. That wasn't the case. What happened was that the casino was putting new decks of cards into the game without shuffling them first. HAHAHAHAHAHAHAHA How stupid. Casino Operations 101 - you SHUFFLE cards before you put them into the game.
The casino, the Golden Nugget Atlantic City, relied on the promise from the card manufacturer that the cards were pre-shuffled. But when things started weird, wouldn't you think that it would take less than 41 winning hands before they would do something like shuffle cards?
To the casino's credit, they have paid out over $500,000 of the winnings, but to their discredit have not yet cashed about $1 million. In addition, the casino has sued the gamblers stating the game wasn't "fair." Really? Oh, yes, the casino is also suing the card manufacturing company.
Let's say the casino is right to obtain relief from the card manufacturer. But pay the players their winnings. In fact, tout the big win, smile, tell the world that not all players may do this well but when players win, the casino is HAPPY FOR THEM. That kind of good customer service and recognition is what gets customers to want to visit. Treating customers badly and suing them for winning, due to your screwup, is bad customer service and what gets customers to not want to visit.
The full story can be found here. What do you think?
The casino, the Golden Nugget Atlantic City, relied on the promise from the card manufacturer that the cards were pre-shuffled. But when things started weird, wouldn't you think that it would take less than 41 winning hands before they would do something like shuffle cards?
To the casino's credit, they have paid out over $500,000 of the winnings, but to their discredit have not yet cashed about $1 million. In addition, the casino has sued the gamblers stating the game wasn't "fair." Really? Oh, yes, the casino is also suing the card manufacturing company.
Let's say the casino is right to obtain relief from the card manufacturer. But pay the players their winnings. In fact, tout the big win, smile, tell the world that not all players may do this well but when players win, the casino is HAPPY FOR THEM. That kind of good customer service and recognition is what gets customers to want to visit. Treating customers badly and suing them for winning, due to your screwup, is bad customer service and what gets customers to not want to visit.
The full story can be found here. What do you think?
Wednesday, October 13, 2010
Atlantic City Gambling Revenue Takes Hit
Test Test Test
Bloomberg reports that Atlantic City gambling revenue fell 12% in September 2010 from September 2009 levels. Gambling revenue was $2.8 billion in the first 3 quarters of 2010, which was almost 9% less than the same period in 2009.
The economy is definitely a factor, but the impact of competition must be looked at as the primary factor for reduced gaming revenue. Surrounding states such as Delaware, New York and Pennsylvania have increased their gambling offerings for their local populations. No need to travel to Atlantic City if the gambler can play close to home.
Atlantic City needs to prevail in New Jersey's efforts to allow sports betting to provide the competitive differentiator to bring back this destination. Otherwise, the long term trend for Atlantic City may not look promising.
See previous posts on New Jersey sports betting here, here and here. The posts discuss New Jersey's efforts and surveys with regard to establishing sports betting and overturning PASPA.
Bloomberg reports that Atlantic City gambling revenue fell 12% in September 2010 from September 2009 levels. Gambling revenue was $2.8 billion in the first 3 quarters of 2010, which was almost 9% less than the same period in 2009.
The economy is definitely a factor, but the impact of competition must be looked at as the primary factor for reduced gaming revenue. Surrounding states such as Delaware, New York and Pennsylvania have increased their gambling offerings for their local populations. No need to travel to Atlantic City if the gambler can play close to home.
Atlantic City needs to prevail in New Jersey's efforts to allow sports betting to provide the competitive differentiator to bring back this destination. Otherwise, the long term trend for Atlantic City may not look promising.
See previous posts on New Jersey sports betting here, here and here. The posts discuss New Jersey's efforts and surveys with regard to establishing sports betting and overturning PASPA.
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