I wonder about those who say that if Revel Entertainment gets its money and completes its complex, it will cause several casinos in Atlantic City to go out of business.
The question that I have is: “How many casinos will close their doors if Revel Entertainment does not complete its development?” Without a doubt there will be more closings if they don’t build than if they do. If those financially troubled casinos are having problems now, what will happen if things continue in the same way those casinos are operating today? In addition is the consideration that, if Revel is open for business in 2011, there will be at least 5,000 people hired to staff the facility. There is little question in my mind that we must do everything possibly to assist in helping Revel Entertainment’s project become a reality. By the way, who will fix the Boardwalk, and when will they do it and the other projects that are slated to be developed in the uptown area if the projected money from Revel’s taxes are not available to the city?
We are anxiously awaiting a report from Mayor Lorenzo Langford’s committee that is being put together to resolve some of the problems that face Atlantic City now and in the future. The grapevine has it that there are some excellent ideas that are being proffered for future events to be held in Atlantic City.
Horseracing Model Is Broken
The following includes news from the New Jersey Gaming/Sports and Entertainment Transition (GSET) committee report on horseracing. As budgeted for 2010, horseracing on racetracks is projected to lose $22 million; the business model is broken. The agreements with various Horsemen’s Association entities will ensure continued losses; during 2010 these agreements need to be re-opened and renegotiated. It is time to review options for racing in New Jersey. We encourage consideration of all the options to make horseracing self-sustaining, including consolidation of racing statewide. The ultimate goal is to continue to have live racing at a venue where the New Jersey Sports and Exposition Authority (NJSEA) and its off-track wagering system can operate without a subsidy.
The NJSEA operates the Meadowlands Sports Complex. It is home to the world’s most popular harness racetrack, a thoroughbred race meet, the top-ranked stadium in the world and the fourth-ranked among larger arenas in nation. Unfortunately, the current financial structure can no longer support the financial, operating and contractual requirements of the authority. Without outside financial resources, the NJSEA will be forced to discontinue its racing operation in 2010. In 33 years of successfully managing the racing, sports and entertainment industries to the enormous financial benefits of the state, the NJSEA’s 1970s financing structure has not been updated to meet current market conditions. This occurred even as state revenues from NJSEA activities grew. In short, while the new operating structure was increasing state revenues, the NJSEA’s revenue streams were being reduced or even eliminated.
In 2006, solutions were presented to then Gov. Jon Corzine’s administration. As part of the solution presented, the NJSEA’s revenue streams would be linked to the fiscal benefits from the operation of the stadium project. In 2008, the NJSEA pressed for the implementation of this prior commitment. Unfortunately, to date it has not been adopted. In light of the above, the 2010 financial and contractual obligations of the NJSEA must legally be met. This overview will present the problem and identify solutions and their ramifications. It is imperative that a solution be put in place for 2010 to allow for the implementation of a long-term plan. If not chaos will ensue in the racing, sports and entertainment businesses in the state, with legal and financial ramifications should the NJSEA cease operations from lack of funds.
The Meadowlands and Monmouth Park racetracks will sustain projected losses of $22 million in their respective 2010 scheduled live racing events. Both facilities additionally require major capital improvements. Off-track wagering (OTW) at Woodbridge (in Fords, N.J.) and Internet-account wagering are profit centers that offset the annual on-track losses by some $9 million. Legislative mandates require a specific number of on-track days in order to operate OTWs and account wagering. This is a restrictive legislative mandate that does not allow for a change in New Jersey’s racing business model.
The addition of gaming at N.Y., Pa. and Del. racetracks drove New Jersey’s on-track live racing from profitable to unprofitable in the past five years. Today there are 12 nearby “racinos” competing with New Jersey. Prior legal agreements require a certain number of specific racing days to continue until 2016. Suspending racing eliminates over 5,000 on-track full, part-time and seasonal jobs between the Meadowlands and Monmouth Park. Another 7,000 jobs statewide are dependent upon racetrack operations, according to a recent Rutgers University study.
The following options have been suggested to resolve losses and create new revenue: Consolidate the racing industry statewide and allow the NJSEA to develop all OTW facilities in-state, if the private track owners continue to choose not to develop their allotted franchises. In order to be more competitive with neighboring states, modify existing statues to provide more management flexibility in staging live racing. Reduce Monmouth Park to a 50-day summer meet with high purses, assuming the elimination of the Meadowlands’ thoroughbred meet and more flexibility for standard-bred scheduling. Amend legislation to make siting and development of the OTWs go more quickly. Rescind allocations not used by Freehold racetrack and Atlantic City’s racecourse.
Please note that there was no mention of video lottery terminals or Internet gaming in their recommendations. Time will tell.
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.
Revel continues to back up its claim that the property will be a mega-casino complex with the announcement that Food Network Iron Chef Jose Garces, acclaimed chef and owner of eight restaurants in Philadelphia, and four more in Chicago and Scottsdale, Ariz. is set to open the doors to three highly anticipated restaurants at Revel.
"Revel Entertainment said Thursday that it has secured the final $1 billion-plus it needs to finish its half-built casino on the Atlantic City Boardwalk."
Article:
No Miss America Parade in Atlantic City
Article:
Happy Birthday, America!
Article:
Miss America Returning?
Article:
Good Start to Summer
Article:
Cantor Remembers Old Atlantic City
Article:
Restoring Atlantic City
Article:
Bring Back Prohibition!
Article:
Beggars Can't Be without Permits
1. Dave said... on Feb 3, 2010 at 07:38PM
“Pinky, we've been waiting for thirty years. Again with the ideas, talk, committees. etc...when is someone, anyone actually going to DO SOMETHING! ANYTHING! Is it the local school system that produces the likes of our government employees? Our surley workers? Our complete stupidity in traffic engineering? Our total disregard for our historic buildings? Our complete failure to see beyond tomorrow? Revel will not open PINKY, are you blind? MGM choose China (a communist, oppressive country) over Atlantic City, how unreal is that? Who's going to repair our boardwalk you ask, how about our tax dollars!! How about the CRDA!! Aren't you on the boardwalk committee? Have ou walked it after dark? Beyond the Pier shoppes? You better retire my friend, you don't have a clue, just like most AC residents.”
2. Wendy said... on Feb 3, 2010 at 08:29PM
“I agree with Dave. You've been talking for years now about ideas and committees etc... AC is not slowly dying it's quickly dying and no one is even puting so much as a band-aid on it's problems.”
3. Joel said... on Feb 4, 2010 at 05:19AM
“Dave and Wendy and all of you other shmohawks who comment on Pinky's
stories whine on about this and that like the man can actually repair the
mess all around you. He's a newspaper columnist for crying out loud. His
articles are read by about 25 people including the boy in the middle and
Eddie J. A.C. is corrupt, senile does not like Atlantic City and until Nate's
re-opens on Atlantic Ave ( one-way) there will be no recovery.”
4. John Piatt said... on Feb 4, 2010 at 08:06AM
“Pinky, I was very disappointed in Mayor Langford's response to the State Comptroller's audit. You can't change what you don't acknowledge. It seems that the Mayor really doesn't acknowledge the seriousness of the audit's findings, so I am wondering if his committee will sense the urgency of the need for change.”
5. Dave said... on Feb 4, 2010 at 01:07PM
“Joel, Pinky is always saying how much he has done for the city, not me. He chairs the boardwalk committee. Name one thing this committee has accomplished, in fact, name anything anyone has accomplished in this city the last three years. What a group of self-serving stumblebums from the top down. You couldn't have screwed this city up more if you tried. How sad and pathetic.”
6. gerry said... on Feb 4, 2010 at 01:27PM
“Dave what have you done for the city lately - where our your ideas you seem to have a lot of time maybe its your turn to fix things”
7. Dave said... on Feb 4, 2010 at 03:31PM
“I'm not black or corrupt....unlike Pinky and his free rooms and dinners at places he mentions in his article. I pay my taxes and support the locxal businesses. Pinky professes to help the city I don't, there's a difference.”
8. Joel said... on Feb 5, 2010 at 01:26PM
“gerry, I'd like to take you out behind the Boardwalk Motel and let Scott
the Pot take care of you. Are you playing with a full deck? It's not Dave's or
Pinky's responsibility to correct what ails the city. Nonsensical comments
like yours should be thrown out and dismissed like the undercooked
fudge at Wooden Paddle. DiscoZim is the man I trust to run this city right.”
9. Sammy the Gypsy said... on Feb 6, 2010 at 01:48PM
“Pinky Knows Atlantic City, but I don't think he knows what the visitors want.A one dollar palm reading, a ten cent hot dog and some pool tables for people walking by might bring back some of the lost crowds that used to pile into town on buses NOT bound for casinos”
10. Eric said... on Feb 7, 2010 at 03:14AM
“I think Revel has entered the too big to fail stage. If they do not secure more financing it will be the largest white elephant on the east coast. Not since Bob Guccione tried to open a Penthouse Casino and ran out of money leaving a steel eyesore would there be such a large unfinished building in Atlantic City. I think the natural reaction to the current state of gaming would be to pull back. Atlantic City is surrounded by competition. In fact there are probably going to be too many casinos especially if Philadelphia ever builds its much delayed 2 casinos. Pinky may have a point that the only way to compete is to go big and use your natural assets of the Jersey shore. However, I think the convenience factor of a local casino will override any wow factor that Atlantic City comes up with for the next few years. I'm a fan of Atlantic City but I'm afraid that the model Atlantic Ctiy has is vulnerable to competition. Pa. is about to add table games. It's going to be tough.”
11. Eric said... on Feb 7, 2010 at 03:24AM
“Pinky, about the boardwalk, why is it so dark at night? I walked from Resorts to Ballys around 7pm recently. It was scary at times. I think it should be lit up like Bally's and Caesar's light up their portion. The same goes for parts of The Walk. It's fine during the day but at night some of the blocks are dark. Perhaps the intent was to highlight the stores with their individual store lighting. However, I think people would feel safer if the area was much brighter.”
12. Dean said... on Feb 7, 2010 at 05:40PM
“Why is it so dark? Because our "leaders" are to concerned with the height of the dunes, they lose site of the obvious. Then again, maybe no one is smart enough to change lightbulbs.”
13. Matt said... on Feb 8, 2010 at 01:58PM
“For anyone who does not understand why the Revel property must be completed just does not understand the importance of fiscal revenue, which includes not only the ratables and jobs, but the draw factor as it pertains to visitors.
What Atlantic City NEEDS to do is diversify its attractions beyond the casino entertainment.
The ideal opportunity would be to take the Bader Field property and embracing Atlantic City's rich maritime history, turn the area into a Nautical Village. The village would consist of a state of the art modern marina along with retail shops, art galleries and restaurants all with a nautical theme, not to mention a sailing activity center.
Can you imagine the back bays and thorofares filled with colorful sail boats as visitors arrive via the expressway or even the Black House Pike? How is that for a positive appearance welcoming into the city?”
14. Wad said... on Feb 10, 2010 at 09:35PM
“Having been to 2 "racinos" in PA numerous times, I last about 30 minutes and leave because they are so boring with nothing to do. Horse racing is a loser and one has to like losing numerous times before maybe winning a small amount. Slots are for losers too. At least with AC, one has numerous other things to do. The last horizon for the east coast is sports gambling, and that CRAP in Delaware isn't sports gambling. So, bring the sports books to AC. Yeah, easy said, but I'm tired of having to fly to Vegas to make a legal bet (the only kind I care about). That would give AC a big leg up on all the other tracks and parlors.”
15. Lisa said... on Feb 12, 2010 at 09:14AM
“Doesn't anyone care that Atlantic City is a dump? The Casinos are falling part and looks like trailer park trash. The streets are horrible and filled with hookers, corrupt politicians and uneducated kids who drop out so they can walk around with their pants on the ground thinking they are cool. This gangster way of life is so sad.
If Revel were to open, who will they steal their staff from? A few casinos need to shut down, I agree. They are old. Dirty and honestly, a mess. People want new, sparkly, fun and clean. That's why The Borgata has been so popular. Wake up south Jersey. Look at other towns that have reinvented themselves. Dont focus totally on casinos. Try to cash in on the beaches, the lighthouses, history, etc. Look at South Beach in Miami. Charleston in SC, Galveston in TX. Look closely, follow their models and maybe there might be some luck in Atlantic City.”
16. AHSEN said... on Feb 16, 2010 at 10:19PM
“Hi,
i bought retail store in Atlantic city Board Walk. I am afraid that new casino Revel will not open so what should i do? Should i sell my store or should i wait? I have invested every thing?”
17. aj said... on Feb 17, 2010 at 09:40AM
“You wanna attract more people give more free dinners away,better comps when you book aroom for 300.00 a night give give give and they will spend it all back and more. People who come to A/C gamble and giving them a 100.00 they will spend 500.00 or more, come on get real gamblers go to Atlantic City period.”