Posts Tagged ‘pennsylvania’

Fall of the Boardwalk Empire?


My piece in the Las Vegas Business Press about the beginning of the end in Atlantic City is out:

Historians have taken the date 476 A.D. and the deposition of Romulus Augustus, the last Roman emperor, as the “official” date of the fall of the Roman Empire, even though at the time most Western Europeans were too preoccupied with daily survival to take much notice of events in the far-off capital.

When historians look back at the history of casino gaming in Atlantic City, they may decide that 2010 marks the beginning of the end of that city's reign as one of the country's leading gaming destinations, and they might focus on a single event: The decision by MGM Mirage to abandon its holdings in the city after the New Jersey Division of Gaming Enforcement found Pansy Ho, the company's partner in its MGM Grand Macau casino, “unsuitable.”

via Las Vegas Business Press :: David G. Schwartz : The beginning of the end for Atlantic City?.

I don’t think this is hyperbole. The revenue trends are showing a decline that started slightly before the recession that is more due to competition than the economic slowdown, although the recession hasn’t helped. There are real problems in Atlantic City.

Are there solutions? Yes, and they go beyond making Pacific Avenue a one-way street. As I see it, the city has to be reinvented to appeal to two groups: investors, who will buy or build new casinos and attractions, and visitors, who will fill them. These groups aren’t mutually exclusive, but they require different approaches. The average gambler doesn’t really care about how many levels of scrutiny casino vendors go through before they are licensed, but this sort of thing makes a difference behind the scenes.

It’s not impossible. The city’s been through worse, and the right forward-thinking people can help get it on the right track. The time for action, however, is now. If AC just continues to coast for a few years, it may be too late, at least for this generation.

 

AC tabled by PA


Great news for Pennsylvanians who like to play table games, bad news for Atlantic City, as Pennsylvania has, to no one’s surprise, approved table gaming. Here’s the reaction from the AC Press:

Pennsylvania’s slot parlors won’t stop at table games as they prepare to evolve into Atlantic City-style resort casinos in a fierce battle with New Jersey for gambling customers.Blackjack, craps, poker and other games will help generate revenue for construction of new hotel towers, retail shops, restaurants, spas and nightclubs — which in turn will broaden the appeal of the Pennsylvania gaming market, casino executives say.

Previously, Atlantic City casino executives had mocked Pennsylvania’s slots-only gaming parlors as “one dimensional.”Much is at stake in the competition between Atlantic City and Pennsylvania. Table games generated $1.4 billion in revenue in 2008, about 30 percent of Atlantic City’s overall take of $4.5 billion. The remaining 70 percent, or $3.1 billion, came from slot machines.

Atlantic City’s revenue figures for 2009 will be announced Monday, though Atlantic City already is hurting from competition from Pennsylvania for slot customers and the weak economy. Through the first 11 months of 2009, the city’s gaming revenue fell 13.5 percent, to nearly $3.7 billion.

via Tables turn in Pennsylvania’s favor: Casinos hope to attract more players with better games – pressofAtlanticCity.com : Atlantic City.

You can find more details of the bill at Gaming Today. Basically, racinos and slot parlors will be able to add 250 games (for reference, the standard Strip casino has 80-100) and the resort casinos can have 50 tables, but can add more slot machines.

Atlantic City has until the summer, or maybe the fall, before the first cards are dealt. The clock is ticking. Unless the casinos can develop some kind of attraction that the Pennsylvania casinos don’t have, or can somehow deliver a customer experience that would justify the extra hour drive and expressway tolls, they can consider the Pennsylvania market–and maybe parts of New Jersey and New York–lost.

There’s a very real possibility that Atlantic City will become a local gaming hub for New Jersey and a few nostalgic Philadelphians.

For a while in the early 1980s, Atlantic City was out-earning the Las Vegas Strip in gaming revenue and visitation, and was being hailed as the up-and-comer. Then as the Strip pulled ahead, it settled into a position as “the casino capital of the East,” with pretty much everything east of the Mississippi potentially feeding it. Then the spread of Indian and riverboat casinos started cutting into that market–Delaware racinos and Connecticut Indian casinos most remarkably.

In the early 1990s a few innovations–24-hour gambling, poker, and keno were the biggest–gave the city’s casinos something new. In 2003 the opening of the Borgata proved that Vegas-style resorts could work. Still, revenue and visitation numbers have been declining. Here are some figures from UNLV’s Atlantic City casino page:

Visitation
2005 34,924,000
2006 34,534,000
2007 33,300,000
2008 31,813,000
2009 ???

Total Resort Revenues (Gaming+Non-Gaming)

2005 6,264,017,000
2006 6,528,927,000
2007 6,256,038,000
2008 5,839,136,000
2009 ???

Gaming Revenues
Year Total win Slot win Table win
2001 4.3 billion 3.1 billion 1.2 billion
2002 4.2 billion 3.3 billion 1.1 billion
2003 4.5 billion 3.3 billion 1.2 billion
2004 4.8 billion 3.6 billion 1.3 billion
2005 5.0 billion 3.7 billion 1.3 billion
2006 5.2 billion 3.8 billion 1.4 billion
2007 4.9 billion 3.5 billion 1.5 billion
2008 4.5 billion 3.1 billion 1.4 billion
2009 about 4.0 billion? (rough mathematical projection based on 11 months at $3.7 billion)

You’ll notice that visitation has declined since 2005, and total revenues have declined since 2006, which makes this a pre-recession problem.

In the last table, you’ll see that slot machine win has fallen to 2001 levels, offset slightly by an increase since then in table game revenues, which is attributable to the competition from Pennsylvania slots after 2007. Pennsylvania tables will undoubtedly cut into the AC table game win in 2010, so it’s possible that the industry will fall well below 2000-era revenue levels. Nevada, by comparison, is back to 2004/05 gaming revenue levels right now.

At this rate, Atlantic City’s going to end up in the stone age in ten years.

 

Sunday afternoon in the Parx


Atlantic City has some new competition, or at least a refurbished version of old competition. From the AC Press:

While the atmosphere of the stylishly named Parx Casino may feature some European or Asian-inspired elegance, the crowd will have a distinctly Philly flavor. When this new $250 million slots parlor opens its doors Friday, it will replace the old Philadelphia Park Casino & Racetrack, better known to its legions of gamblers as Philly Park.Now that Pennsylvania lawmakers are on the verge of giving final approval for table games at the state’s slot parlors, Parx and its counterparts will be an even greater threat to the struggling Atlantic City market, industry officials predict.

“It just gets worse for Atlantic City. I truly believe Atlantic City is permanently disfigured,” said Justin T. Sebastiano, gaming analyst for Morgan Joseph & Co. Inc. “I certainly think table games will hurt Atlantic City.”

“Everyone is going to want to see what the little Philly Park casino has been transformed into,” spokeswoman Carrie Nork Minelli said during a tour of the new facility.Indeed, customers need only look across the parking lot to see the dramatic differences between Philly Park and Parx. Philadelphia Park’s temporary casino was a reincarnation of the warehouse-like horseracing grandstand from the 1970s.

The modernistic Parx represents the next generation of casinos in Pennsylvania’s fledgling gaming industry.Even the old Philly Park has been a formidable competitor for the Atlantic City casinos, about an hour’s drive away in good traffic. Located about 20 miles north of center-city Philadelphia, it is Pennsylvania’s top-grossing slots parlor and has been stealing customers from feeder markets once dominated by Atlantic City.

Parx lacks the soaring hotel towers that are a staple of the Atlantic City gaming resorts. But the casino floor itself is reminiscent of the glitzy Atlantic City properties. Parx also features new restaurants, bars and a nightclub to give customers more to do than just gamble.

via Pennsylvania’s Parx likely to steal Atlantic City’s gamblers – pressofAtlanticCity.com : Atlantic City.

Sebastiano might want to mix in a thesaurus. “Permanently disfigured” sounds way too graphic. It’s not like Philly Park came down and threw acid in the city’s face–the city just has more competition.

The thing is, everyone knew this was coming. Even if you continued to bank on slots not coming to Pennsylvania after it became a serious possibility in 2002/03, the legislation chartering slot gaming was signed in July 2004. Even the most skeptical Atlantic City casinos, then, have had five and a half years to get ready for “new competition.”

Las Vegas faced this same problem when California Class III Indian casinos became a reality on 2000. Las Vegas gets about a third of its visitors from California. But no one said Las Vegas was permanently disfigured: instead, most people realized if the city wanted to thrive, it had to give Californians a reason to drive past a half-dozen Indian casinos on their way to Nevada.

Can Atlantic City do the same? The city did a so-so job of reacting to the opening of Connecticut casinos in the early 1990s, but it doesn’t have a history of pro-active growth. The time to have this conversation was six years ago. Granted, some casinos–Harrah’s, Tropicana, Borgata, and the Trump Taj Mahal spring to mind–responded with expansions and adding other amenities, but the market as a whole should have stepped its game up by now.

At this point, the city’s in a position where two-thirds of its properties are playing catch-up with a slot parlor, despite a thirty-year head start.

Yes, the headline is a Fair Warning reference.

 

Gaming Expansion at G2E


I’ve finally gotten official word today: I’m moderating a panel at this year’s Global Gaming Expo. Here’s the session:

Gaming Expansion: Push and Pull Factors in 2008 and Beyond
Tuesday, November 11, 9:15 AM-10:15 AM
In recent years, gaming expansion has been inconsistent, with dramatic victories in Pennsylvania and Kansas, partial success in Florida, and rejection in Rhode Island. This panel will examine the factors that drive gaming expansion for suppliers, operators and states. In addition to handicapping the chances of continuing expansion, attendees will hear several viewpoints on the ongoing phenomenon.

Should be fun. Optimally, I’d like to have someone on the panel who’s opposed–or at least bearish–on continued expansion, but I’m not sure that someone against gambling expansion would go to a gambling industry conference. Still, I’m looking forward to it, and I encourage you to attend, if you’re going to G2E.

 

Spinning reels in Philly


There was a good piece on the coming of slot casinos to Philadelphia in USA Today:

Visitors come here to see just one bell — the Liberty Bell. Soon they’ll be looking for a row of them — on a slot machine.

Pennsylvania’s 2-year-old state gaming board is to award licenses Wednesday for two slot machine casinos to be built here. That will make Philadelphia the largest city in the country with casinos and put legalized gaming within 2 miles of Independence Hall, where the founding fathers gambled their fortunes on revolution.

The arrival of slots parlors here is part of the spread of gambling through the mid-Atlantic. New Jersey, New York and Connecticut have casinos. Pennsylvania and Delaware have slots at racetracks, and Maryland’s incoming governor wants to do the same.

In Philadelphia, founded by Quakers whose religious beliefs prohibit gambling, slots casinos are facing a cold welcome from the neighbors.

In Pennsport, the riverfront neighborhood where Rene Goodwin lives in a 19th-century brick row house, the elevated bulk of Interstate 95 separates narrow residential streets from big-box stores and the city’s container port. One of the casinos is proposed for a vacant site next to Wal-Mart.

“It isn’t this hinterland,” says Goodwin, who leads Riverfront Communities United, a group of seven neighborhood associations. Pennsport would be overwhelmed by traffic and crime if the slots parlor is built two blocks away, she says. “It’s a real place, where people know each other. … Is it worth destroying one of the best neighborhoods in the city for a casino?”

Five proposals are competing for the two licenses. The developers include Donald Trump; the Pequot tribe, which runs Foxwoods Casino in Connecticut; and the owner of Philadelphia’s two daily newspapers. Four of the proposed slots parlors would be built along the Delaware River, and the fifth would be across town, closer to wealthy suburbs.

Philly to be largest gambling city – USATODAY.com

You’ve got to wonder what this will do to Atlantic City. Now, more than ever, is the time to broaden the appeal beyond slot machines. There’s been a great start with Borgata, but the ultimate fate of the city as destination may rest with the next generation of resorts–whatever replaces the Sands, and several other projects on the drawing board.

 

Big money at Pocono Downs


Slot machines are wonderful things, if only for their power to transform formerly obscure sites into hotly-debated centers of finance. Seriously. Five years ago, if you had said that the goings-on at a Wilkes-Barre, Pennsylvania racetrack were going to be front-page news anywhere, people would have said you were nuts. Well, thanks to the almighty Slot, Pocono Downs has its moment in the sun. From the The Citizens Voice:

Mohegan Sun at Pocono Downs officials can’t really say if the numbers they’re seeing out of Pennsylvania’s first slots parlor are better or worse than expected.

“We really didn’t know what to expect as the first casino in the Commonwealth,” said Robert Soper, president and CEO of the facility.

Still, financial figures coming out of the facility are eye-popping on a local level.

Gamblers pumped $39.3 million into slot machines at the Mohegan Sun at Pocono Downs in just the first week of operation. They won back $35.3 million, as the machines have been paying out an average of 90 cents on every dollar waged.

Of the $4.08 million left in the machines after all the winnings were paid out, the state has taken $1.4 million for property tax relief, $163,000 for local government, $204,000 for economic development and tourism, and roughly $490,000 for the state’s horse racing industry, according to figures provided by the state Department of Revenue. That left the casino with weekly slots revenues of $1.83 million, before operating expenses.

Few expect the casino to keep up that pace.

“We’re pleased with the first week, but we’re cautiously optimistic, as we know that the high volumes will smooth out over time as the novelty wears off,” Soper said.

The Citizens Voice – $39.3 million wagered at Mohegan Sun in first week

My very rough calculations show that the slots’ average win/day was around $529–better than casinos in Atlantic City and Connecticut. For that matter, it’s better than just about everywhere in the country.

By the way, if you want to see something moderately amusing, click over and keep reading the story–you’ll see that your humble blogging friend quoted.

 

A casino school?


In Australia, I’ve been told, collections of gamblers are called schools–a “two-up school,” for example, is a bunch of people playing the classic Oz game. (If you’re from Australia, let me know if this is true). In America, there are dealer schools, and even degrees in casino management, but Donald Trump wants to take it one step further. From the Inky:

Trump casinos has made an offer to the Philadelphia School District to buy a school that sits on land where it proposes to build a slots parlor in Nicetown.

Trump wants the Randolph Skills Center, a 400-student vocational-technical high school at Henry and Roberts Avenues, district spokesman Fernando Gallard said yesterday.

Gallard would not say how much Trump had offered for the school, but added that a decision would not be made for a while.

Trump Entertainment Resorts Inc. has proposed a $350 million casino for a portion of the approximately 80-acre site in Nicetown that once held the Budd Co. factory. The property, between Roosevelt Boulevard and Hunting Park Avenue, is owned by Preferred Real Estate Investments of Conshohocken.

Trump has encountered heavy community opposition to his casino plan. Community groups in Nicetown have held protests, and a number of residents have put up lawn signs opposing the casino. Opponents of a potential sale of the school are scheduled to speak at the School Reform Commission meeting today.

Philadelphia Inquirer | 02/08/2006 | Trump wants to buy city school for casino site

My thoughts? My high school was demolished to make way for a casino parking lot. Atlantic City High School was bought and torn down by Park Place Entertainment because the community was, apparently, crying out for more valet parking spaces for the Hilton (though it might have been called Bally’s Grand back then). So I don’t think it’s such a big deal.

Maybe he’ll build an education-themed casino…they could call the player loyalty program the “Valedictorians Club” and have cocktail waitresses in cheerleader outfits. And, of course, mystery meat in the student cafeteria-themed buffet.

 

Super Mario Slots?


If you live in Pittsburgh and want to keep the Penguins in town, your best hope might be a slot casino. Even though the team won’t directly run the proposed slot parlor, its profits may help pay for a new arena. From the Post-Gazette:

The Pittsburgh Penguins’ partner in a proposed $1 billion development at the site of Mellon Arena is willing to put up $290 million to pay for a new, 18,000-seat home for the National Hockey League team.

The Penguins’ development, which would secure the team’s future in Pittsburgh, is contingent on winning a license for the city’s slot machine casino.

Besides construction of a casino and a replacement for the aging arena, oldest in the NHL, the development would include a mix of offices, residential units and retail space.

The Penguins will team with a yet-unidentified gambling operator and with Nationwide Realty Investors of Columbus, Ohio., to handle development.

As part of its application for the Pittsburgh slots license, the gaming operator intends to pledge the money to build a new arena. It also would finance construction of the casino for 3,000 slot machines, with room to expand to 5,000.

The Penguins will not be the applicant for the state license, nor will the team take any profits from the slots casino. Once a new arena is built, it plans to turn ownership over to the city-county Sports & Exhibition Authority.

Penguins find arena funds

I think the team should go all out and have current players serving as casino hosts, welcoming players and the like.

As is usually the case, money trumps everything. If pro football didn’t have such lucrative TV revenues to fall back on, I’m sure that the NFL would be just as keen to use gambling to help pay for its stadiums.

There isn’t a word about connections between gambling and sports being inappropriate now, is there?

 

Beware the murky residue


I’ve heard some bad metaphors before, but this one takes the cake: a “gambling expert” explains that in the bathtub that is Las Vegas, you can’t see the “dirt ring” left by gambling, but in Pennsylvania you will be able to see it. I wish this was a joke.

Read the rest of this entry »

 

Another great headline


You’ve got to love an editor at the Las Vegas Sun making it sound like the Keystone State is banking on more people’s lives to be ruined by problem gambling: Pennsylvania plans for more gambling addicts.

 

Slots and Christmas don’t mix?


Bethlehem, Pennsylvania, has been calling itself “Christmas City” for a while now. Click the link to see why. Some there are up in arms about a plan to leave something new under the stocking…a slot parlor. From McCall.com:

When some Lehigh Valley leaders began lining up behind a proposal to bring a slot machine parlor to the city, opposition arose from those who believe the glitz of gambling would quickly eclipse the quaint historical character of the town.

For them, even a $10 million host fee from the slots operator for the city and another $10 million for Northampton County aren’t worth the crime and traffic that could come with gambling.

”I think whoever gets the casino is going to be regarded as a Johnny One Note � that will become the reputation of the town,” said city Councilman Joseph F. Leeson Jr. ”It would eclipse everything else.”

BethWorks Now, a group of New York investors, recently purchased 120 acres of former Bethlehem Steel property on the South Side and plans to apply for a slots parlor license.

Pennsylvania’s gaming law allows slot machines at up to 14 locations � seven licenses will go to race tracks, five to nontrack parlors and two to resorts. For the five nontrack parlors, two licenses are reserved for Philadelphia and one for Pittsburgh, leaving two in play.

Leeson recently investigated the possibility of passing a city ordinance that would require council to approve a slots parlor, but City Council solicitor Christopher Spadoni said communities have no say in where a slots parlor can be located.

Gaming ‘’shall not be prohibited or otherwise regulated by � any political subdivision,” Spadoni wrote in a Sept. 23 memo. In short, the gaming legislation allows slots parlors to be placed wherever the state Gaming Control Board decides.

Sensing backlash from communities that may not want to have a slots parlor, some legislators are trying to change the law to allow local zoning to regulate their placement.

Slots and Christmas City don’t mix, say some

It’s funny, but the Bethlehem, PA website already has gambling. In an effort to make the site “sticky,” the webmaster added links to lottery results. That doesn’t mean anything, but apparently the lottery, which has a hold over about 50%, isn’t inimical to the spirit of Christmas, while slots, which have hold percentages of 10% or less (unless the slot owner tightens them up), are disruptive.

I’m seeing a made-for-TV special here, something like, “A Jackpot Christmas.”

 

Casino Nation


There is an interesting article Forbes about the expansion of casino gaming:

California is not the only state where gambling is on the ballot in November (indeed California alone has two initiatives), and it is not the only place where racetracks want to salvage their flagging business, which is based on one kind of gambling, by instituting a second kind of gambling. New York and Pennsylvania will install slots at tracks, and Florida is actively considering the idea. There is a gambling initiative in Nebraska, which would legalize casinos. There, Schwarzenegger’s good buddy Berkshire Hathaway chairman Warren Buffett, a Democrat from Omaha, is joining in the opposition, which, according to the Lincoln Journal Star is being outspent by about 20 to 1.

All told gambling is the second-most popular topic for political referendums this year, according to the Initiative & Referendum Institute at The University of Southern California. Six states are deciding 13 measures. (The one more popular initiative topic is gay marriage.)

It’s nothing new. At this point, 46 states have some form of legalized gambling, according to Casinocity.com. [NOTE: It's actually 48] There are 35 states with some form of legalized electronic gaming device, mostly slot machines, at Indian casinos, commercial casinos, racetrack casinos, bars, restaurants or other licensed establishments, according to the American Gaming Association, a lobbying group. The AGA says legalized gambling is a $73 billion industry as measured by gross gambling revenue (the amount wagered minus the winnings returned to gamblers, as of 2003.)

http://www.forbes.com/2004/10/11/cx_da_1011topnews.html

In vaguely related news, Colony is going to re-brand Harrah’s Tunica as Resorts Tunica, playing off what is apparently its flagship property, Resorts in Atlantic City. When I saw that Colony had renamed the Las Vegas Hilton’s player card the “Resorts International card,” I speculated that, if Colony still owns the property in a few years when their use of the Hilton name expires, would rename that casino Resorts International. It would, in a way, returning to its original name, the International.

 

Slots, urban design, and destination dreams


Philly Inquirer architecture critic Inga Saffron doesn’t think much of the recently-passed slot bill. From Philly.com (reg. required):

The legalization of slot machines in Pennsylvania was sold to the public as a form of tax relief, although tax redistribution strikes me as a better term. Harrisburg will use part of the money deposited in the parlors’ one-armed bandits to reduce the Philadelphia wage tax. If current revenue projections hold, someone earning $40,000 a year would eventually save $160 annually in city taxes. As a further incentive, Philadelphia has been promised $636 million to expand the Convention Center.

But the city will have to pay dearly for this infusion of revenue. The slots bill, which was rushed through the legislature without the usual opportunities for public comment, strips Philadelphia of planning and zoning powers over its future casinos. Instead, a seven-member, state-run gambling control board will decide the big design issues, from the location of the casinos down to the location of their garage driveways.

The city’s lack of control is no small thing. With Saturday’s vote, Philadelphia became the biggest city in America to permit casinos. Unlike the gaming halls in Detroit, Milwaukee and New Orleans, ours will be wedged into a dense and still-thriving downtown. At least one slots parlor – and possibly two – appear headed for Market Street, in the high-profile stretch between City Hall and Independence Mall.

That’s barely two blocks from the residential neighborhoods of Washington Square and Chinatown. Yet slots parlors the size of those planned in Philadelphia, with 5,000 machines, can draw 40,000 gamblers in a 24-hour day.

Saffron argues her case on some interesting aesthetic grounds:

Casinos and good design go together about as well as oil and water. Because gambling operators want to keep patrons at their machines as long as possible, they aim to block out anything that hints of the outside world, such as clocks and windows. Virtually every downtown casino built in America in the last decade is a solid-walled box, surrounded by a vast supply of parking spaces.

What urban good will a big box do for an eclectic urban environment like East Market Street? For that matter, what good will a big box do for the Delaware River waterfront, where another slots parlor is expected?

Let me quote Gary Tuma, spokesman for Sen. Vince Fumo (D., Phila.), who largely wrote the slots bill: The casino applicants will be judged on “their potential for producing revenue.” Gambling was not conceived as a way of improving the urban environment….

In a perfect world, Philadelphia’s slots parlors would be planned as one component in a major revitalization of dowdy East Market Street. The area has been sadly neglected even though it is a key connector between the Convention Center and the tourist district around Independence Mall. It’s vital that the casino be attractive for gamblers and non-gamblers alike.

Changing Skyline | City’s losses outstrip its slot wins

I doubt that she read Suburban Xanadu, but I think that my book makes some of the same points. Obviously, casinos are, like any business, designed to maximize revenue. In that a casino is profitable, one can say that it is well-designed.

Does this mean that it is an asset to an urban neighborhood? Not necessarily. As I said in Suburban Xanadu, self-contained casino resorts–what you find on the Las Vegas Strip, on Indian reservations, and in Atlantic City–have not proved themselves to improve any kind of “urban” fabric. A casino designed to encourage genuine interaction with the neighborhood, though, certainly could.

Another view, from the Intelligencer, holds that slots parlors won’t make too much of an immediate impact:

They may like slot machines, but don’t expect busloads of seniors clutching rolls of quarters to head for Philly Park any time soon. Senior centers and tour bus operators, many of which organize regular trips to Atlantic City, say it will take a while for now-legal Pennsylvania slot machines to compete with the lure of a trip out of town – not to mention all those discounts.

“Part of it is going away,” said Emma Straccio, manager of the Lower Bucks Activity Center for Retired and Senior Citizens. “There are more things to do in Atlantic City: the boardwalk, the ocean, and there are a lot of promotions.”

At the same time, some local tour companies are making adjustments to prepare for the tide of as much as 61,000 slot machines arriving at select locations across the state, including Philadelphia Park in Bensalem.

Lion Tours, at four trips a day, six days a week, runs as many as 100 trips a month to Atlantic City, and about 80 percent of the participants are seniors, according to Richard Tisone, vice president of the Levittown company.

He said he will definitely feel the impact of the slots bill, but he added that if it’s good for the state’s economy, “as a businessman, I’m just going to develop a different market.”
It will take some time for slots in state to compete

People are finally talking about Atlantic City as a destination. Hopefully, for that city, this will force operators to invest in non-gaming attractions. In a nutshell, they have to create a south Las Vegas Strip-east rather than a Laughlin-east.

These efforts may be paying off already, because, according to the AC Press’s editorial page, “young people” now consider the resort a happening place:

Various reports in the news media this summer indicate that, lo and behold, Atlantic City is now considered hip by 21- to 35-year-olds. This is excellent news.

Trump Marina Hotel Casino started it a couple of years ago by booking acts with more appeal to young people than to the blue-haired set. Then the Borgata Hotel Casino & Spa opened and capitalized on the Marina’s early success by aggressively reaching out to younger people.

And now, in the summer of 2004, between the fresh acts and the beach bars, the shopping and the nightclubs and, oh yeah, the casinos, Atlantic City is suddenly hot among young people. “Atlantic City is so underrated,” says Alex Gilli, 22, uttering words that the resort’s marketers have longed to hear for years.
But our advice to tourism officials: Shush …

It is truly wonderful news that a younger generation is finding Atlantic City to be hip and cool. But as all truly hip and cool people know, once a place (or a clothing style or a band or a particular piece of slang) is perceived by the general public to be hip and cool, it is – by definition – no longer hip and cool.

So keep doing whatever you’re doing that’s helping a new generation rediscover Atlantic City – but don’t talk about it much.

Yes, I’m sure that Las Vegas wishes that it had kept itself a well-kept secret. Once word got out that famous people went there, the city really went downhill.

Maybe the editorial is a way of justifying AC’s attempt to become a destination without launching the kind of ad campaign that Las Vegas has.

If you were from Atlantic City, as I am, you wouldn’t be surprised at inaction being trumpeted as a civic virtue.

__________________________________

 

Super Mario slots?


No, Nintendo isn’t developing a platform slot machine/game (at least that I know of). Rather, Mario Lemieux and the Pittsburgh Penguins may soon own a slot machine license. From the Post-Gazette:

Specifics have yet to be developed, but team officials hope to convince the new state Gaming Control Board that no licensee could contribute as much to the community as the Penguins. Atop the list of what they are expected to offer is a commitment to cover all of the estimated $250 million cost of a facility to replace Mellon Arena, along with a pledge to keep the 37-year-old National Hockey League franchise in town for the long term.

For four years, the Penguins have sought a new arena funded mostly with public money. Their plan to fund it with slots profits, team officials are expected to argue, would spare state and local taxpayers the burden of replacing a multipurpose arena that opened in 1961 and is among the oldest of its size in North America….

“I think it’s a very innovative approach, and I hope the Penguins move aggressively,” said state Sen. Jack Wagner, D-Beechview. “I can tell you that I believe the Pittsburgh parlor will be the most lucrative in the state, and there are going to be funds available for the owner to do something extra to help the community. If that’s getting an arena out of the deal and keeping the Penguins in town, that’s a win-win for us. The last thing I want is for us to lose professional hockey in Pittsburgh.”

Sen. Sean Logan, R-Monroeville, who also has a spot on the city-county Sports & Exhibition Authority that owns Mellon Arena, has been vocal in his opposition to public funding for a new facility. But he was effusive in his support of awarding a slots license to the Penguins.

“I think that’s a great idea,” Logan said. “Having a venue like that, where they could have shows, hockey games and other events connected with the slots parlor … if the Penguins and Mario Lemieux are serious, that’s something we all should look into.”

Logan added that the local stature of Lemieux — the Penguins’ owner, Hall of Fame center and long-time charitable contributor to the medical community — could give him an edge over applicants whose backgrounds are not as well known.

The Penguins would be expected to produce the $50 million license fee and follow the same procedures as any other applicant, legislators said.

Although professional sports generally try to avoid any association with gambling, the NHL already has given its blessing for the Penguins to pursue a slots license. NHL Commissioner Gary Bettman said last week that he would take no issue with the team owning and operating a parlor, even if it were part of the arena. Two years ago, he granted the Calgary Flames permission to seek a gambling license.

Penguins to seek slots license, pledging profits for new arena

I guess that’s not a total reversal on the league’s part; I’m not aware of the NHL being as rabidly anti-gambling as the NFL, which won’t even allow commercials for Las Vegas during the Superbowl.

Now that slots have become a reality, things will get really interesting, as competition for the licenses heats up.
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Keystone slots


Now that the governor has signed the slots bill, it looks like the machines are coming, paving the way for the creation of a massive slot industry in Pennsylvania. From ABCnews:

Gov. Ed Rendell signed laws on Monday authorizing 61,000 slot machines in Pennsylvania more than any other state except Nevada and using most of the state’s share to pay for a $1 billion cut in property taxes a year.
Revenue from the slot machines, which would be located at 14 sites, including seven horse tracks, would be used to cut property taxes by an average 20 percent.

Rendell, a Democrat who had made slots-for-tax-relief the centerpiece of his 2002 election campaign, signed the bills at Philadelphia Park, the thoroughbred track that produced Kentucky Derby-winner Smarty Jones.

“It isn’t a panacea, but it certainly isn’t the demon it’s been made out to be,” Rendell said. “It’s a good, significant step on the road to property-tax relief.”

Opponents of the slots bill predict a proliferation of crime, gambling addiction and other social ills. They complained that the bill was crafted in secret by a handful of party leaders and lacks adequate safeguards against corruption and conflicts of interest among members of the state panel that would oversee the slots parlors.

Proponents said the law would allow the state to recapture much of the money Pennsylvanians pour into slot machines in neighboring states and help revive the state’s horse racing industry.

The property tax reduction will not be immediate. Officials say the initial relief would be deferred until at least 2006 to allow time for the slots parlors to obtain licenses and gear up.

Of the roughly $3 billion a year slots are expected to generate, the licensees would keep 48 percent, the state would get 34 percent and the rest would be divided among the equine industry, public construction projects, and counties and municipalities in which slots parlors are located.

Pennsylvania Governor OKs Gambling Bill

That is a lot of slot machines. This is precisely why Atlantic City should have spent the past few years reinventing itself as a destination. They have made great progress along these lines, but haven’t quite shaken the quarter slot parlor stigma, at least in the mainstream media.

This expansion of slots could have far-reaching effects from Maryland to Ohio, and possibly beyond.
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