Comments on: A gamble down on the boardwalk http://blogs.reuters.com/david-cay-johnston/2012/09/14/a-gamble-down-on-the-boardwalk/ Sat, 23 Mar 2013 13:49:31 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: TheOldSodbuster http://blogs.reuters.com/david-cay-johnston/2012/09/14/a-gamble-down-on-the-boardwalk/#comment-1673 Thu, 20 Sep 2012 23:07:43 +0000 http://blogs.reuters.com/david-cay-johnston/?p=421#comment-1673 Any state that ‘depends’ on gambling is a comment on its own view of the future.

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By: matthewslyman http://blogs.reuters.com/david-cay-johnston/2012/09/14/a-gamble-down-on-the-boardwalk/#comment-1671 Thu, 20 Sep 2012 21:32:55 +0000 http://blogs.reuters.com/david-cay-johnston/?p=421#comment-1671 Welcome to an “industry” that doesn’t produce any goods, that makes its patrons poorer and wastes their time and reasoning power. Gambling cannot be considered profitable in the broader sense; not even locally, when everyone is jumping on the band-wagon…

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By: jginnane http://blogs.reuters.com/david-cay-johnston/2012/09/14/a-gamble-down-on-the-boardwalk/#comment-1667 Sat, 15 Sep 2012 17:27:47 +0000 http://blogs.reuters.com/david-cay-johnston/?p=421#comment-1667 There is a glaring issue with this article … the Revel hasn’t even had its chance to be fully open yet!

A significant source of revenue in the Revel business model has always been from non-gambling sources. In this context, Revel’s “beach club” never opened this past summer.

The delay has been caused by NJ state’s protracted delays in completing two jettys in the surf off the Revel building. Even now, mid-September, the minor jetty has only grown 40 feet from the shoreline. The more important one, which would take the brunt of winter nor’easter waves, has been disassembled, and the large boulders lie scattered, half-buried in the sand at the edge of the water.

I could go on at length about the jetty problem, but the crux of the matter is this: look at Las Vegas’ Wynn/Encore Beach Club in the height of the summer season: 8,000 partygoers a night times $100 average ticket price (for top-name performers). That’s $800K daily, before things like bottle service and other charges. Not every performer commands such a premium, but a lot (in the EDM genre) do.

And the Revel casino hasn’t had the benefit of any of this — because of the state’s workers pushing single, “boutique” rocks around in the surf. (When we needed beach jetties in WWII, a barge would drop a load of rocks — bam! — and it was done. The state’s efforts are apparently aimed at a permanent construction job akin to the Great Pyramids.)

“Build it and they will come” … I remain bullish on Revel’s prospects, because they have an opportunity to create a unique product for the New York and Philadelphia markets. Gambling isn’t supposed to be the whole reason for their existence, unlike the other 11 casinos in Atlantic City. And did it get mentioned that Revel is 100% smoke-free, the first of its kind in this state?

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By: bryanX http://blogs.reuters.com/david-cay-johnston/2012/09/14/a-gamble-down-on-the-boardwalk/#comment-1666 Sat, 15 Sep 2012 16:04:00 +0000 http://blogs.reuters.com/david-cay-johnston/?p=421#comment-1666 Atlantic City is depressing. Right off the boardwalk, adjacent to the Disney-esque artifice, a bunch of 12-steppers and methadone cases milling around like zombies.

It reminds me of Downtown Vegas in the late 80s.

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