Saturday November 21, 2009

INTERVIEW - Glitz key to Atlantic City's future-Harrah's exec

By Deepa Seetharaman

NEW YORK (Reuters) - Atlantic City needs more flair, flesh and flash if it wants to take back business from the growing number of slot parlors in the Northeast, a senior executive with Harrah's Entertainment said on Friday.

"The old of way of thinking was, 'We don't care. We just want gamblers,'" Don Marrandino, who oversees Harrah's four casinos in Atlantic City, said in an interview.

"We want people to come and have a good time and tell their friends."

Harrah's shift in thinking comes at a time of declining gaming revenue for the city's 11 casinos. According to the New Jersey Casino Control Commission, gaming revenue fell 12.6 percent in the third quarter of 2009.

Marrandino, who said about 90 percent of Atlantic City's casino revenue comes from gambling, is part of a discussion among the city's casino executives and local officials about enlivening the city to draw crowds despite the weak economy.

Marrandino said he will attend a meeting with Atlantic City's business leaders and politicians on Tuesday to discuss revamping the city, which relies heavily on the casinos.

"When your back's against the wall, it's amazing how people unify," Marrandino said. "You'll see more done over the next 12 months in the city than you've seen in the last several years."

Marrandino said he hopes this push will help the city's non-gambling offerings, such as its restaurants and shopping, garner more attention. Coupled with top acts and racy entertainment at its casinos, the seaside town can edge out competing slot parlors popping up in nearby states, he added.

"We're trying to get some of the laws swiftly changed so there can be topless shows in Atlantic City, like there are in Las Vegas," Marrandino said, adding, "It would be great if sports betting or sports gambling would be allowed in Atlantic City."

Marquee events in October, including a concert by rap artist Snoop Dogg, helped two of Harrah's casinos in Atlantic City see gaming revenue increase about 11 percent from the prior year, Marrandino said.

Harrah's -- which runs Bally's, Harrah's, Caesar's and Showboat in Atlantic City and is owned by private equity firms TPG Capital and Apollo Global Management -- has scheduled concerts and celebrity appearances that it hopes will attract tabloid attention.

Some properties will also be touched up.

The Claridge Atlantic City, which is part of Bally's, will be revamped to look more like a W Hotel next year, Marrandino said, referring to a Starwood Hotels & Resorts hotel chain. The Wild Wild West Casino at Bally's may be entirely rebranded, Marrandino added.

(Reporting by Deepa Seetharaman)

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