In Atlantic City, casinos have been unfortunately known to shutdown. In the past, several casinos have closed their doors, including the Trump Plaza, Trump Taj Mahal, Atlantic Club, Showboat and more. The former Revel Casino was a huge undertaking that closed down on 2014 after only two years in operation. The casino changed hands a few times, becoming TEN then the Ocean Resort Casino. Now, the venue has a new owner and has been renamed the Ocean Casino Resort. So, will the new owners be able to turn around the luck of the property and see a profit?
The Luxor Capital Group is the new owner of the casino, who is ready to turn the fortunes of the property around. The company will have to think outside the box if they want to succeed. So far, in around a ten year time frame, the property ahs been subjected to two bankruptcy filings, one closure, a bailout from the state and five different owners.
Eric Matejevich is the interim CEO of the company who stated in an AP report that a total of $70 million has been invested in the property. Of that amount, $50 million was used to pay down debt. The CEO feels that an improved balance sheet will help the casino to reach a point of profitability in May. The company will then continue to invest into the brand.
With Luxor at the helm, several changes are expected for the property. This includes an additional 500 hotel rooms plus 200 slot games. While the additions will be welcome, it seems that the casino will have to come up with new ways to entice visitors.
During the third quarter of last year, the casino had an occupancy rated of 86.8%. During the fourth quarter, that amount dropped to 67%. Both quarters had below industry percentages when it comes to hotel occupancy.
A plan will have to be put in place to market the hotel rooms and slot games. Without a good marketing plan, the visitor traffic numbers most likely will not improve and the casino will be at square one once again.
The Luxor also has plans to upgrade the dining and entertainment offerings of the casino. The property does not have a buffet option, which is something that players tend to seek out when visiting gambling establishments.
Creating a Reputation
For the most part, the reputation of the Ocean Casino is nonexistent. On the negative side, the casino is located in a building that has had a negative connotation for years. The new owners will need to create a positive brand recognition so players who visit Atlantic City will seek out the property.
Another issue for the Ocean Casino is their online presence. For the most part, every online casino in operation in the state is doing quite well. Ocean Casino does not have a strong presence in the online gaming market and this has hurt their overall bottom line. It seems the problem here is also branding.
With so many well-known names already in the mix, both online and land-based, it has been difficult for Ocean Casino to gain any ground. Visitors recognize the names like Golden Nugget, the Borgata and Resorts, so they use their sites and visit the land-based venues. The new owners of Ocean Casino are going to have to make major strides if they expect to start earning revenues and be any type of competition in an already competitive market.