Atlantic City, New Jersey, is beginning to look to Las Vegas and the “non-gaming revenue model” as the key to its future, according to a recent article in the Press of Atlantic City. This development has implications for the future of Japanese IRs as well.
It was around 1989 that Las Vegas began to shift its main focus from the casino floor to non-gaming aspects of entertainment, led first of all by Las Vegas Sands and Sheldon Adelson, who pioneered the notion of using MICE facilities to drive growth.
Other companies followed, to the point that the IR operators now make almost 2/3 of their Las Vegas revenues through non-gaming elements of their properties.
It seems that Atlantic City, which did not initially follow the Las Vegas pattern, is belatedly coming to the conclusion that the “non-gaming revenue model” is indeed their best hope for the future, especially as more jurisdictions on the East Coast of the United States are allowing casinos to open.
Atlantic City casinos still gain most of their income from gaming, but it appears that the balance will be shifting soon. Indeed, the two newest properties Hard Rock Hotel & Casino Atlantic City and Ocean Resort Casino already gain more revenue from their non-gaming segments. (AGB Nippon)