Atlantic City needs to boost nongaming options, experts say

Tom Bell

Tuesday, Aug. 3, 2004 | 8:49 a.m.

ATLANTIC CITY -- Experts told a Senate committee on Monday that Atlantic City needs to significantly boost entertainment and other nongaming options in order to limit any loss of casino business when slot machines arrive in Pennsylvania.

Several of those who testified before the Senate Wagering, Tourism and Historic Preservation Committee estimated that slot machines in the neighboring state could siphon as much as 10 percent of cash revenue from Atlantic City casinos.

"They are going to hurt Atlantic City's business," said Eric L. Hausler, a gaming analyst with the Susquehanna Financial Group.

Lawmakers in Pennsylvania recently approved a plan to put up to 61,000 slot machines in 14 venues around the state. The Senate committee held Monday's session to gauge how Atlantic City would be able to respond to the competition.

Hausler said that about 20 percent of the customers who now gamble at Atlantic City casinos are from Pennsylvania.

Jeffrey Vasser, executive director of the Atlantic City Convention and Visitor's Authority, said early results of a survey still being conducted showed that 87 percent of visitors from southeastern Pennsylvania would still go to New Jersey's casinos with the same frequency once Pennsylvania had legalized slot machines.

Vasser said the loss of business would have a similar effect on New Jersey to when Delaware and Connecticut brought slot machines to horse racing tracks.

One casino official said that Atlantic City could make up for the loss by making an effort to raise revenue from sources other than slot machines and blackjack tables.

"We have to continue to transfer ourselves into a full entertainment experience. We're not where we need to be yet," said Audrey Oswell, president and CEO of Resorts Atlantic City. "We need to continue building our nongaming infrastructure."

Oswell said Atlantic City's goal should be to offer something much bigger than plunking quarters into slots at a drab racetrack.

"Atlantic City is not trying to offer a 'racino' experience," she said.

Others at the hearing praised the success of the Borgata Hotel Casino & Spa, the city's newest casino, in attracting a younger crowd. Sen. Barbara Buono, committee chairwoman, said casinos should work on booking musical acts that could introduce the casino experience to those who think of Atlantic City as a destination for grandparents.

"We need better entertainers than Frankie Valli and Cher," Buono said. "I'm not going to Atlantic City to see Cher."