And with back-to-back years of positive casino wins and a renewed interest by investors, there is optimism and talk about a renaissance taking place. In 2018 and beyond it is about the grass roots redevelopment that is going on in Atlantic City. We are seeing a new optimism, one step at a time, and investor initiatives that give hope and a piece back to the city image with each new project. They are creating the foundation of a more diverse hospitality market. It is growing in front of us; within reality based planning, property by property, and by well-respected and financed stakeholders. In Atlantic City we are witnessing a more strategic casino footprint and a blending of community among all segments of hospitality. The city will be a different model from its former casino market base. Replicating casinos on a global scale, the floor sightlines now include cafes and restaurants as well as more space to allow for social gatherings. Properties are paying attention to the next generation of customers and their desire for a “multi-integrated” set of experiences. These nongaming elements generally bring a consistency to a property brand that adds interest, curiosity and cross-generational appeal. In order to continually operate successfully in this market, operators need to grow it. Obviously a property (such as the soon to open Hard Rock) that brings their national or international brand and existing customer base to AC will have an advantage. Every property in AC has gaming product. In the competitive congested, sometimes oversaturated market place (such as the east coast) a company planning to open a resort needs more than a marketing strategy that simply says they are “different.” And opening a new version of an existing property without a unique presentation, “marketing drawing card” or loyal customer base will not only struggle to survive, but also may impact profits from other operators. And for the “casino-guys,” a reminder that the casino side of the market must grow by customers, before it can grow by games. After decades of operating as a resort, AC still lacks sufficient air routes and rail. The market needs growth and expanded transportation models to assist in that growth. The city has to move beyond the much relied on drive-in market. These are some dynamic elements that will play out
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in the next 12-24 months: • How will the market respond to Hard Rock’s operation in Atlantic City? There is no doubt that the Hard Rock brand will add its own loyalty base to the market. Its presence will enhance the environment, not dilute it. • The future of the former Revel, on the other hand, is anyone’s guess. If the new owners open without the foundation of an established brand and loyalty base, the operator will need to build one; and this will require some unique marketing talents. • 2018 is another year we may see a push for a North Jersey casino. • The border state issues still continue as NY State expands its casino model. • Massachusetts opens new properties. • Pennsylvania has now legalized on-line casinos. We are at least one year out for an operating infrastructure and we could see some legal battles over the 10 “mini casino,” model that was also approved. • Also by 2019 there will be one more operating casino in the stadium district of south Philadelphia. • US Supreme Court pending decision on legalized sports betting. (Decision Summer 2018) Atlantic City has an opportunity for a new beginning. The beach, the boardwalk, lavish hotels, dining, retail and great entertainment are part of that integrated resort experience. As investors have begun supporting AC projects again, the confidence in the financial markets will lend itself to even more development. In my editorial column published last year in Casino Life magazine, I quoted a movie trailer tagline from the 1980 movie Atlantic City. It summed it up best then as well as now. “Atlantic City; for everyone who’s ever needed one more chance.” Bob Ambrose, Gaming Consultant & University Educator @bobambrose