Several months ago, I was asked to meet with Curtis Bashaw at his Chelsea Hotel. I went to the meeting wondering what he wanted to talk about. He stated he felt that something needed to be done to boost the number of people coming into the city and that he believed that smaller hotels, such as his 300-room property, would help to achieve that if they had a small casino on the premises.
I listened to his pitch and told him I didn’t agree with him. I told him that his proposition would be unfair to the current facilities that all had to build a minimum 500-room hotel with amenities such as a theater, restaurants and retail units. Their investments ranged from $500,000 to more than $2 billion. We finished our talk and left with our difference of opinion.
A few months later, State Sen. Jim Whelan, while on his monthly visit to my radio show, brought up a proposal of having 200-room casinos in Atlantic City. He stated that this would help to infuse more business into Atlantic City, as the new 200-room casinos would help to stimulate business on the Boardwalk as well as bring additional casino revenue to the state. At that time, I expressed my opposition to this proposal. I felt that it would provide competition to our present casinos and that that was the last thing they need at this particular time.
We had a few calls from listeners, both pro and con, and we finished the interview and departed with our opposing beliefs intact.
Obviously the idea has taken legs, as last Monday, March 22, Whelan introduced a bill that would permit four 200-room hotels to have 20,000-square-foot casinos. In a story in Sunday’s edition of our local daily newspaper, Whelan said the reason for this bill was that we have too many plots of derelict and abandoned land on the Boardwalk and that we need to find a way to fill in those gaps. It is interesting to note that the bill includes the possibility of existing non-casino hotels being converted into small gaming halls. Among them is the Chelsea Hotel which, by the way, is not on the Boardwalk, is already built, and would not be filling any derelict or abandoned land.
According to the article, Mark Juliano, CEO of Trump Properties, said, “I think the whole thing is ludicrous. You want to have a Las Vegas strip or downtown Las Vegas? Downtown Las Vegas is what we are morphing into and that’s not good.” He continued by stating that Atlantic City is already struggling against casinos in Pennsylvania and elsewhere, and that new, smaller casinos along the Boardwalk would simply intensify the competition. “One thing we don’t need right now is additional casino space,” said Juliano.
The story also noted that Whelan doubted existing casinos would be hurt by his proposal. He said, “Status quo cannot continue. If we do not make change, we will continue to slide backwards.” The bill further states that a 200-room hotel would have 20,000 square feet of gaming space, or could start with 30,000 square feet of gaming space and 200 rooms, but would need to expand to 500 rooms within five years. They would pay five percent of gross receipts into a special fund. The money would be used to help them finance their expansion. If they do not expand, the money would be used to fund public improvements in Atlantic City or help existing casinos finance upgrades with low-interest loans.
People have expressed concern about how Revel’s forthcoming hotel-casino would affect the casinos that are currently having financial problems. Similarly, how would the four 200-room casinos affect the ailing casinos? If one is located at Albany Avenue and another on Chelsea Avenue, it is my belief they would have a negative effect on the Hilton and the Tropicana.
Notes of Interest
For the third consecutive weekend, the Jersey Shore towns were loaded with people and cash registers were ringing. From the sub shops to the gourmet restaurants and everything in between, business was booming. In Atlantic City, it was a combination of the Carrie Underwood concert on Friday night, the St. Patrick’s Day Parade on the Boardwalk on Saturday, the Beer Festival at the Convention Center on Saturday and Sunday, and the desire of people to take advantage of the first weekend of 70-degree temperatures.
There was much concern about how the Caesars Tennis Classic would do. I am happy to inform you that most of the high-priced seats have been sold. And most of the purchasers are from out of the area. The folks who are promoting the Classic are selling most of their tickets to people in northern New Jersey, New York and Philadelphia. This speaks well for the event, as these folks will be coming to town and more than likely staying overnight. If it is as successful as anticipated, we may look forward to it happening again next year.
The Atlantic City Airshow, which last year drew a record crowd of 700,000 spectators, will be held on Wednesday, Aug. 25. The Greater Atlantic City Regional Chamber of Commerce is endeavoring to increase the attraction for this midweek event. As many of you know, Tuesday, the day before the show, is the practice day and almost all of those participating will be flying the course throughout the day. This is quite an attraction in itself and it needs to be publicized. Hopefully the Chamber will be able to put together a free musical attraction on the beach for Tuesday evening that will entice people to come into the city and spend the night. Not only will they see the aircraft flying for two days, they will also have the opportunity to enjoy exciting free entertainment. I urge you to make your room reservations early.
Pinky’s Corner airs Monday through Friday from 4 to 6pm on News Talk WOND-AM 1400. His TV show, WMGM Presents Pinky, airs Saturday at 7:30pm on TV40. Pinky’s e-mail address is: pinky@acweekly.com.
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1. Fred said... on Mar 24, 2010 at 06:42PM
“Last weekend was pretty packed, the City needs to keep up with the parades, festivals (Seafood fest, Blues festival would be good, Miss America etc...) EVERY WEEKEND! UTILIZE THE BEACH!!! FREE CONCERTS!! FIREWORKS!!!! The CRDA should pay for these events, the increased Casino traffic will re-supply the fund. As for Bashaw, he's about 200 million in the hole and Whelan is his last straw. He sure wants this bad, he's on his PR campaign. Where would you put a casino in the Chelsea? How much revenue could you produce? Currently they market themselves as an elogant hotel away from the casino noise, I guess the noise of slots is better then the sound of debt collectors pounding on the door.”
2. Anonymous said... on Mar 24, 2010 at 07:20PM
“Atlantic City has already had a small casino. It was called the Claridge. It didn't survive. Talk about sliding backwards!”
3. Anonymous said... on Mar 24, 2010 at 08:40PM
“just what atlantic city needs, casinos like on fremont street.
i rarely agree with mark juliano, but on this issue, he is correct.
jim whelan, patron saint of the mega resorts,bob levy and the h tract giveaway, now wants dime store casinos.
”
4. Anonymous said... on Mar 24, 2010 at 08:57PM
“The City needs small casinos, especially in todays economic environment. Although it will create competition for existing Atlantic City, it is what the city needs. This will push out the old casinos and either have them close their doors or put money into the casinos rather than their shareholders dividend or profit. Competition helps business thrive, it doesn't kill it. If a casino can be built with 200 rooms, it makes sense. Casinos don't need 500 rooms, that is what kills them. There are already thousands and thousands of hotel rooms being sold for less than a tank of gas. Also there are still thousands of casino hotel rooms left empty. Atlantic City is being rejected by large players and the only way we can get this rolling is by private investment in the city. It will create jobs and more spending in Atlantic City. Any economic is good for the city, Whelan is right about their being huge pockets that are just vacant and ugly (i.e. Pinnacle).”
5. Anonymous said... on Mar 24, 2010 at 09:40PM
“How will the Hard Rock look next to the shell that was once the Hilton? If one of the current Casinos closes this city will careen downhill fast. On last weekend- more quality, diverse events= more people= more money. Understand the concept?”
6. Anonymous said... on Mar 24, 2010 at 10:15PM
“what a moron ... "we don't want to be like downtown Las Vegas" ?
hahaha... never thought i'd hear anyone from AC utter those words. AC can only wish to be regarded in the same league as Vegas. Seedy history and all.”
7. Joel said... on Mar 25, 2010 at 04:22AM
“No one has mentioned the proposed Skilland Casino being considered
for the Boardwalk. This project surfaced a few years back with two old
time A.C. movers and shakers Nate and Eddie Fisher trying to get the funds
Supposedly they have located and promise to put in the famous Pan Game
as the only game of it's type in A.C. Now that is what we need Pinky. True
innovators to bring more people into town.”
8. They Call Me Flip said... on Mar 25, 2010 at 09:10AM
“Pinky,
As a long time visitor from Boston, I have to disagree with you on the 200 minimum room proposal. AC needs new blood and it needs to update its image now. AC also needs more rooms in order to attract bigger conventions; which in turn will bring in more visitation. Whelan's proposal will help. The rule that he's tying in that they would need to expand or pay money into a fund to help improve non-gaming amenities is another step in the right direction. Currently, there are only two hotels in AC that would fall into this minimum - the Chelsea and the Courtyard. Besides Revel there are no projects planned for a very long time.
The fact that some of the older properties will struggle is going to happen whether or not these boutique casinos are opened. Downtown Vegas has a lot of visitors and the city is actually working on improving the area - rather than just talking about improving it. The city can use the diversity of the smaller casinos if done right.”
9. They Call Me Flip said... on Mar 25, 2010 at 09:50AM
“The Palms casino, the M Resort, & Green Valley Ranch casino to name a few casinos in Las Vegas that either started out with less than 500 rooms and/or still have less than 500 rooms are wonderful properties that add something to Las Vegas. Why can't people build properties like these in AC? Because of the 500 room minimum. Smaller, boutique style casinos do not necessarily equate into cheap properties.
AC's casinos are hurt by the economy and new competition. They need to start thinking outside of the box and figure out ways to survive. They've given up on trying to woo the day trippers or low rollers. But they haven't done enough to differentiate the city as a resort destination to bring in enough high rollers or vacationers. They need to stop chasing one demographic and realize there's other groups that they can make money from.”
10. Jack said... on Mar 25, 2010 at 01:16PM
“Would smaller casinos offer smaller minimum table stakes to attract the smaller (less expensive) player who would possibly attend conventions , shopping & other attractions ,They could spend several days and use affordable rooms and not just be day trippers , They would also not expect any comps to be offered.This could help the entire gaming industry in our city.
It is ironic that Bashaw & Barr currently own vacant Boardwalk property at this time”
11. American Gaming Guru said... on Mar 25, 2010 at 05:11PM
“Pinky, Why take a side with the headline? I thought the article was well written with both sides of the story. Anyone who listens to your show knows that you are friends with Jim Allen (CEO of Hard Rock). Why dont you get him on the show or ask him how his proposed AC Hard Rock is going to "cheapen" the AC experience as you, Gomes and Juliano have suggested? I think a chat with him, rather than Curtis, might make you change your mind or at least give you an outside perspective.”
12. Anonymous said... on Mar 25, 2010 at 05:11PM
“200 rooms or what ever else it takes to get Atl. City going again. We can't stay with the status que. Smaller casino don't seem to be hurting PA. They are cleaning our clock ever month with the amount of money they are taking in.The older hotels have made there investments back ten fold when Atl. City was the only game in town besides Vegas. They should have put some of those profits back into their hotels and maybe today they would'nt look like the dumps they are. Bring on the Hard Rock.”
13. American Gamign Guru said... on Mar 25, 2010 at 06:19PM
“Does this look like " downtown Las Vegas"? Will facilities like this "cheapen" AC? See and judge for yourselves:
www.hardrockbiloxi.com
Especially take a look at thier acomodations, pool and restaurants. Very downtown, cheap looking indeed!”
14. Eric said... on Mar 26, 2010 at 05:02AM
“This is a tough one. However, I think smaller casinos would hurt the existing casinos in A.C. I don't think they would attract more people to A.C. If they could create incentives for the existing casinos to upgrade their current properties that may be better. Maybe the Hard Rock could partner with an existing casino sort of like Showboat and the House of Blues. Someone like Bally's could replace the Wild Wild West with a Hard Rock or even the Claridge. Also, I was down in A.C. last weekend and it was standing room only on the train ride back to Philly. Great to see a good crowd.”
15. They Call Me Flip said... on Mar 26, 2010 at 09:44AM
“Eric,
Why would the Hard Rock want to partner with an existing casino in AC? House of Blues teamed with the Showboat when business was good in AC and was a way for them to get into gaming. Hard Rock is already in the gaming industry, so the attraction of teaming with someone for experience isn't necessary. Would you put $300 million into an old property to have a piece of it or would you build something from scratch to get your foot into the market and expand as the market demanded it? Would you want to team with TRMP or Resorts or the AC Hilton? Revel is the only mega-resort project that is on-going in AC. MGM, Pinnacle and Penn Gaming have all canceled their projects. Barshaw-Barr have postponed their project. There are no projects planned and little money available for a mega-resort. AC cannot afford gaps of 8-13 years between new casinos and survive in the new gaming world. Putting new carpeting-paint on the old ladies is not going to entice visits. New casinos will.”
16. r bleecker said... on Mar 26, 2010 at 10:14AM
“Everyone has forgot the playboy, it was small and different, it is no longer, the building is now one of those vacant lots. I am not commenting on whether we need any small casinos, but I thank the facts speak against the idea.
”
17. Wad said... on Mar 26, 2010 at 05:23PM
“Downtown Vegas? For me, it's the best place in Vegas. It's the only place I stay when there; however, putting in some smaller casinos in AC and calling that Fremont Street is a joke. Vegas is awful for gambling. Blackjack pays 6 to 5 (AC pays 3 to 2). You lose all your "outside" bet when the ball lands on green (roulette Vegas). In AC, you get half your bet back. I'm sure there are a lot of other bets the same way, but the above and sports betting is all I do in Vegas. Smaller casinos in AC? Why? I don't stay Downtown in Vegas because the casinos are small. I stay there because I can walk the 5 blocks to any place I want to go. AC already has that, and it is called the Boardwalk. Try walking any place in Vegas. You risk your life trying to walk the Strip since the only thing protecting you from cars passing by (some at high speeds) is an 8 inch high curb. I'm willing to bet that when Pennsylvania gets the table games up and running, they will copy the LOUSY Vegas payout”
18. Alan Krigman said... on Mar 26, 2010 at 07:54PM
“All those years that Claridge and Sands claimed the reason for their poor performance was that they were too small. Not enough casino space. Not enough hotel rooms to house the high rollers they needed to survive.
We all know the fate of thise two places. Hilton, which somehow "made it" as the Nugget was also too small -- so out went the theater, in went more machines, and up went a big hotel wing. Of course, the joint is still floundering, but that's another story.
I never agreed that a small place couldn't succeed. But the people who ran the casinos said it couldn't -- and it was a self-fulfilling prophesy. Either that, or they didn't have a good model to play the usual casino industry game of "copy cat."
So... what makes Mr Bashaw, the good Senator Whelan, or anyone else think a boutique casino, presumably without the amenities the big joints use to pander to the folks with more dollars than sense, can succeed in this town?”
19. Sammy the Gypsy said... on Mar 26, 2010 at 08:59PM
“If all the politicians have there way, me and my friends will be able to go to Tony's, get a bowl of spaghetti, and play video poker all night at our table (like they have at the casino bars). I hope the Flamingo and Ascot motels on Pacific qualify, cause my friends from out of town like to stay there. I'm also going to contact the nice lady who owned the Green House on Arctic Ave. to reopen the place after she gets her casino license. The rooms there were quite nice, you didn't need air conditioning.”
20. Eric said... on Mar 27, 2010 at 02:11AM
“They Call Me Flip, that's why I said this is a tough call. You have valid points. All of the current casinos in A.C. have gone through some type of update, either new towers, new shopping, clubs, remodels, etc. But an amusement park needs a new ride to keep people interested. You can't keep dressing up the same ride and calling it new. So adding smaller more efficient casinos may help in the short run. However, I think in the long run they would fail and may take a casino or two with them. Philly's Sugarhouse Casino is scheduled to open it's interim casino in Sept. 2010. This will be another serious competitor. With A.C.'s casinos already nervous about Revel's impact. Is adding more casinos in A.C. the answer? A.C.'s history with small casinos has not been good. But places like Bally's have been getting smaller. The Claridge is down to half of one floor left for gaming, parts of the Wild Wild West have been walled off, so maybe smaller is happening anyway.”
21. Joel said... on Mar 27, 2010 at 05:14AM
“Sammy the Gypsy makes some wacky comments that I don't understand.
I wish there was some way that you could keep his comments out of your
postings Pinky. It disturbs me when I try and read through these and he
puts in these things that only Marvin Klepner can understand. Nate's
luncheonette and Casino where the Sands sat is by far the best bet for
the city.”
22. Rendezvous park said... on Mar 27, 2010 at 07:43PM
“No 200 Room Casinos In Atlantic City. We need to work on getting Attractions on the vacant lots between Pacific Avenue and The Boardwalk. A few attractions such as the type at Universal Park and Disneys MGM Park would bring in crowds to visit and gamble year round.”
23. Madison said... on Mar 28, 2010 at 12:14PM
“Atlantic City is NOT Las Vegas. Stop trying to replicate it. It will never happen.
Any development that starts out at 200 to 499 rooms can always expand when the economy recovers. Isn't that obvious to all of you? Denying the smaller investment now insures the city will continue to look like a slum for years to come. My only objection to the bill is it limits new development to four new places.
What I'm seeing is 'fear of competition' from something new and outright snobbery.”
24. Bob M. said... on Mar 29, 2010 at 08:37AM
“Last week my wife and I came to Atlantic City for 2 nights. The room that we had at one of the major Casino's was like a bargin basement room it was small and dirty. The casino's have not make any changes in the last 5 years, they do not offer any more give aways, like birthday parties monthly gifts and buffets like they used to. My wife has been going to Atlantic City for over 30 years myself it has been over 13 years. We used to make anywhere from 6 to 8 trips per year. Now with nothing changing and the new younger executives trying to save every dime thinking that people will come no matter what and spend thier money is not true. After this last trip maybe we will come once a year. Because Atlantic City used to be are special place. Right now the Indain Casino's are doing it right and that's were are business is going.”
25. Dan said... on Mar 30, 2010 at 07:52AM
“Meanwhile back on the boardwalk, the city decides to tear up the boardwalk in front of boardwalk hall at the beginning of the season (why do it off season it's cold out) and the pavillion at Albany Ave. looks like hell and the inlet section is still closed off. Where are the summitteers?”
26. Jimbo said... on Mar 30, 2010 at 12:27PM
“I agree that it would not be fair to existing hotels that had to build under different rules. I also agree that something needs to be done with vacant lots on the Boardwalk. Maybe a compromise could be worked out. However, I think the key must be NEW CONSTRUCTION on vacant Boardwalk-front land only. Maybe the extra 5% tax should go to improving existing casinos only.”
27. Mister Matt said... on Mar 30, 2010 at 12:34PM
“Why would Atlantic City EVER want to be like Las Vegas?
There is no ocean in Vegas, no beach and no world famous boardwalk. There is no lighthouse, no sailing, motor boating or deep sea fishing.....the list goes on and on. The crime rate is Vegas continues to soar and leaving the strip, especially in the evening hours, causes you to question your sanity while you continually look over your shoulder.
Keep the existing casinos strong and continue to diversify the city. Look how amazing midtown is these days with the huge developement of retail shops and restaurants. Embrace the rich maritime history of Atlantic City and turn the old Bader Field property into an entire sea friendly destination and community.”
28. AMerican Gaming Guru said... on Mar 30, 2010 at 02:12PM
“Madison....well said!”
29. Anonymous said... on Nov 29, 2011 at 03:11PM
“The Claridge has 500 rooms!”