You are in:
Stateside
Sharon Harris tells the naysayers to “get a grip”…
While I learned a lot of industry information at the recent East Coast Gaming Conference, it was also a fascinating lesson in psychology. For those who have been in therapy, it was a “shrink’s” dream scenario.
Several hundred visitors traveled to Atlantic City from Florida up through New England. The tone of the speakers’ presentations and the attendees’ conversation divided the audience into two camps: the optimists, or “glass half full” types, and the pessimists, or “glass half empty” personalities.
In other words, the positive thinkers stated they view the current economic conditions as an opportunity to dramatically recreate the gaming marketplace. Revising casino construction projects in a fiscally responsible way will still ensure quality while offering a fresh look. Employing new marketing and public relations strategies may expand new customer groups in the long term. As a truly bold step, some advocated demolishing the old and worn down neighborhoods to build newer, more robust gaming destinations.
The “doom and gloom” crowd moaned and groaned as they try to ride out the recession. They survive on the hope that gaming will return to its former glory days. For me, this negativity proved depressing and counterproductive. Can these people be the cheerleaders their organizations need at this time?
The American Gaming Association (AGA) recently released its 2009 State of the States survey of casino entertainment. Always an eye opener, this year’s overview is even more compelling. Its data reflects only 2008; conditions have clearly worsened in the first half of 2009.
Those who argue that gaming hurts a state’s welfare more than it helps should analyze the annual tax revenues. When conditions “go south”, everyone loses. Of the 12 commercial gaming states, only five had higher tax revenues in 2008 than in 2007.
Obviously, those figures are proportionate to consumer spending on gaming, but states should do everything possible to help casinos achieve and maintain profitability. In addition to lost gaming taxes, employee payroll taxes decline with every layoff. Even more sobering are the benefit decreases that result from lower gaming taxes, such as senior services or education.
The survey claims 65% of the public believes the casino industry is valuable to American travel and tourism. A whopping 84% of travel and tourism professionals label gaming as a “must” to make traveling more appealing. Three-quarters of the public and travel industry insiders agree that casino destination tourists also patronize other attractions, dining and shopping outlets while visiting.
The survey provides invaluable insights. How should operators, responsible for thousands of jobs and multi-billion dollar properties, use that information while directing their individual companies? My advice; always promote the good by devising unique ways to create a new environment. Shareholders should demand innovative talent in return for high salaries.
Savvy executives must highlight the best of their regions. For example, Las Vegas can promote its excitement and good weather. Reno and Lake Tahoe in northern Nevada can market the gorgeous scenery and skiing. Atlantic City has the beach, ocean and its renowned Boardwalk. Access to Atlantic City continues to improve via added air and train service.
Other regional jurisdictions like Pennsylvania and the Midwest riverboat states offer convenience for shorter excursions. Rebuilding after Hurricane Katrina, the Mississippi Gulf Coast casinos sparkle. Each gaming location has its pros and cons. However, they all offer unique experiences.
Smart casino operators will take advantage of the public’s continued strong support. Even Donald Trump, an Atlantic City fixture and gaming’s “Believer-in-Chief”, may want to roll the dice again in Atlantic City. He first entered the New Jersey market two decades ago.
In February 2009, “The Donald” resigned as chairman of Trump Entertainment Resorts Inc., following a dispute with corporate bondholders who rejected his request to take the company private. Trump Entertainment filed for Chapter 11 bankruptcy protection that same month, aiming to restructure $1.7 billion in debt.
New bankruptcy documents reveal an alliance between Trump and a bank to bid on acquiring the company. He may face competing potential suitors that include the bondholders themselves, the company’s management or a separate entity for the properties.
To his credit, Trump demonstrates an unwavering spirit. Others like him also project great resolve. Gaming needs determined positive leaders in today’s environment. So, naysayers, get a grip, suck it up and show some grit for this great business. Deals are being made every day, everywhere. Take heart, we’ll get through these tough days and emerge better for it.
