And the Legislature needs to adopt tax rates, similar to those in PA (55% on slot win and 16% on table games); that would provide meaningful revenue that might convince AC interests, that they will benefit from their tax share, in spite of some loss in casino play. And for the NJ Seniors, an important voting bloc; it would project that their programs would benefit by probably $200 million annually; about the same amount they have lost from AC’s tax, since Pennsylvania first approved slots, in next door Philadelphia.

AC has to reinvent itself, once again, like it did in 1978. But we have lost the convenience factor to 95% of our previous monopoly market, which has had an enormous impact on mid-week play, where at one time we entertained over 14 million line run bus visitors; that has now declined by over 90%.

As the Strip in Las Vegas learned in 1990, hosting the 170,000 attendee Comdex Convention; there are many ways to profit, besides the casino. In fact, at the 23 largest Strip resorts, casino win is under 35% of total revenue, and the casino department’s contribution to EBITDA, was even less, at 27%. AC is not likely to see other revenues exceed casino win (now at 70%), but mid-week overnight demand from conventions and trade shows, could triple mid week room rates, benefit from public space rentals and profitable functions, while replacing comp or discounted guests, that also expect other inducements, like free play.

And AC would still be a bargain, compared to Manhattan, or our other Eastern competition; and it would allow us to re-open some of our closed resorts (without a casino or a downsized one). Comparing the major Strip resorts, with the AC Boardwalk casinos, showed a big difference in annual occupancy (92.1% to 77.1%) but an even bigger difference in room rates ($163 to $92). If you look at AC hotel and casino posted room rates, it clearly indicates we are a weekend resort; outside the months of July and August. The convention trades are primarily mid-week, and in the off season; where AC needs to provide decent overnight demand, at top room rates, which will improve occupancy, revenue and profits for 200 nights a year. A period where the casinos are currently entertaining a small audience, mostly taking advantage of various promotional programs and discounted or free rooms, food and beverage.