Resorts Casino Just Finished a $70 Million Renovation
Resorts Casino is hoping to recover from a bad 2013 with a new round of renovations and by changing the theme of its gaming floor. Resorts Casino announced operating losses of $12.2 million in 2013, with a flat revenue of $130.8 million. Those are up from the $8 million in operating losses the previous year. Executives say part of the 50% increase in losses is due to the renovations, which shut down gaming in some areas.
With the largest percentage of the construction finished, Resorts Casino believes they will see a marked increase in revenue. The early numbers suggest that to be the case. The 1st quarter revenues were $29.3 million, an increase of 12%. The summer months should prove to be even better, due to the new theme ready to launch in the coming weeks.
Resorts Casino Renovations and Makeover
Resorts Casino continues a makeover which its executives hope will change its financial results. Resorts Casino is Atlantic City’s oldest casino, while its longtime theme might be lost on 21st century customers.
The casino’s previous owner, the late Dennis Gomes, had the cocktail servers dress like flappers. While a few customers with a taste for Prohibition-era history might find the theme amusing, the new management saw an opportunity to update the look of the resort and breathe some life back into the gaming floor.
Beach and Surfing Designs Replace 1920’s Flapper Theme
Resorts Casino Hotel President and CEO Mark Giannantonio says that look will be gone by Memorial Day 2014, replaced by a more contemporary beach theme which has tested well. The property underwent a $70 million renovation, adding a Margaritaville complex and a Boardwalk retail area. The retail outlets will help bring more revenues into the Resorts Casino, while the surfer vibe should appeal to several generations of gamblers.
The Parrotheads theme is designed for Baby Boomers, but this older generation are the ones with the excess money to spend on gambling these days. Even the younger generation, who might not know or care about Jimmy Buffet, is likely to prefer a beach paradise or surfing theme to a glorified speakeasy. The city has approved the beach at North Carolina Avenue as a surfers beach. Surfer Dean Randazzo of Jersey Devil Surf will give surf lessons at that beach.
By the time the summer arrives, Mark Giannantonio believes the Resorts Casino will be ready to have a strong 2nd and 3rd quarter. Giannantonio said, “We have a whole experience coming for this summer that will be fun and games and music, and just bring a whole new feel to what we already have.”
The renovations are not complete yet. A cabana bar is planned for the sandy area in front of the Landshark Bar & Grill. Staff uniforms more in keeping with the beachfront theme have yet to be revealed.
Resorts Casino and PokerStars
Unlike most other Atlantic City gaming operations, the online Resorts Casino has yet to launch. The reason for the delay is the partnership Resorts Casino signed in June 2013. At the time, it appeared to be a major coup for the Atlantic City casino, because they had signed a deal with the biggest name in online poker: PokerStars.
PokerStars announced in October 2013 they would integrate their online brand with the land-based casino’s gaming floor, putting tens of millions of dollars in the cross-promotion. In December 2013, though, the New Jersey Gaming Control Division announced it was suspending the licensing process for PokerStars, for up to two years. Rational Media (PokerStars) ongoing legal troubles with the U.S. Justice Department, stemming from the Black Friday case, was the reason for the suspended procedure. The suspension could last up to 2 years, though it could be lifted sooner, if PokerStars clears up its legal issues.
No Resorts Casino Online for Now
That leaves Resorts Casino without an online casino and card room portal. When their Internet gaming does launch, it should become a major force in the licensed intrastate New Jersey gaming industry within a short time. PokerStars is the leading poker room on the Internet, at least outside the United States. PokerStars itself has said the gambling revenues for New Jersey will increase significantly when they are licensed, though some analysts believe allowing Rational Media into the market could hurt New Jersey’s regulatory standards. PokerStars paid a $731 million fine to the U.S. government in the Black Friday case, which included charges of money laundering, bank fraud, and illegal gambling.
Mark Giannantonio declined to comment on the ongoing licensing issues for PokerStars, including whether Resorts Casino would have been allowed to pursue other partners after PokerStars’ licensing procedure was suspended. When asked for further details, Giannantonio said, “They (PokerStars) are our partner, and we’re waiting for them to be licensed.“
