Nongaming Revenue Las Vegas vs. Atlantic City

It shouldn’t be a surprise that Las Vegas earns more than Atlantic City on things other than gambling.  However, it’s a little shocking – not surprising – to see how much Las Vegas’ percentage of revenue comes from sources outside of gambling versus Atlantic City.

…But Atlantic City still has a long way to go before it can reach Las Vegas’ level, where about 60 percent of revenue comes from nongaming ventures, said Cory Morowitz, of Morowitz Gaming Advisors LLC, in Galloway Township.

Last year, nongaming revenue in Atlantic City was probably less than 10 percent after discounting comped goods, Morowitz said.

“I don’t think we can get to 60 percent,” he added. “We just don’t have the room size that Las Vegas has. Rooms are the biggest driver.”

As I mentioned there’s no surprise that the nongaming revenues are greater in Las Vegas than Atlantic City.  Las Vegas has put a lot of effort into creating those revenue streams for better or worse.

Borgata was the first casino to really put effort into creating nongaming revenues and Harrah’s Resort and Tropicana have followed suit by enhancing their club experiences.  Bally’s is starting down that road by renovating their properties (Claridge and Wild Wild West) and Harrah’s is considering rebranding Showboat.

These are all good steps to separating Atlantic City from the rest of the East Coast casinos that have been popping up over the past few years.

In addition to expanding their club scene I think (actually, I know) that better restaurants and more shows need to follow to grow this revenue stream and separate Atlantic City from the rest of the casinos.

Gwen Stefani - No Doubt - Borgata

Photo: Flickr: woundsarebleeding

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Las Vegas Writer, Marketer, Consultant. I love Vegas and everything about it. When in Vegas do 3 things: eat, drink & gamble.

Author: Marc

Las Vegas Writer, Marketer, Consultant. I love Vegas and everything about it. When in Vegas do 3 things: eat, drink & gamble.

2 thoughts on “Nongaming Revenue Las Vegas vs. Atlantic City”

  1. I’m a frequent visitor to Atlantic City. The hotel/casino’s live entertainment promotion is dismal. They book a lot of old school Vegas acts, plus artists who have had commercial radio/TV exposure. Promotion and advertising is usually limited to the casino. It’s like the casino’s have never heard of social networks. Artist who can sell hard tickets in most any market, and who cost less then others acts being played, but aren’t heard on radio are ignored. Ticket prices run 10%-25 % higher then in other markets and the length of the shows are shorter. Stage production for the live music’s performances leave a lot to be desired.

  2. KRG, I agree with you 100%. I stopped writing about Atlantic Cities poor marketing a while ago. Excellent points on radio artists. At least HOB *tries* with some some younger/fringe artists. Thanks for adding your 2 cents.

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