Atlantic city casinos hope for $20m promotions fund
Posted by Bev Freeman on 14 Aug 2009 at 13:08
America's second-biggest gambling market is calling for cash from the state government as it bids to promote itself during the recession.
The Associated Press reports Atlantic City casinos are looking to put together a pot of $20 million per year to promote the resort.
Atlantic City is having to battle America's recession and also fight off competition from around the country.
Eleven casinos have come to front the argument for promotional funding, saying it would pay for itself due to increased tax revenues and contributions to state-wide projects.
According to the Associated Press, the casino's plans could prove difficult thanks to the state recently only just getting out of a budget crisis, cutting its spending and ruling out tax rebates for some citizens.
But executives are also looking elsewhere for cash, and there is a possibility of a casino investment panel.
Quoted by Associated Press, Jeff Vasser, president of the Atlantic City Convention and Visitors Authority, said: "Our job is to change perceptions of Atlantic City and bring more people here.
"We are in the most expensive media market in the nation, where our key customers come from — New York and Philadelphia. We also want to get into Washington and Baltimore."
He also said any program would take a minimum of three years have an impact and stay in the minds of the public.
According to the head of the Casino Association of New Jersey, the resort needs to spend at least $20 million a year on promotion. The current budget for promotion stands at $11 million, funded mainly from taxes.
Atlantic City's ambitions pale in comparison to the promotional budget of Las Vegas, thought to stand at $250 million per year.
Atlantic City has been fending off competition from slots venues in Pennsylvania and New York while also battling the recession which has even see the likes of Las Vegas start to struggle.
However, Atlantic City hopes to pull back visitors by better promoting its non-gambling activities including restaurants and shopping.
Joe Corbo, president of the Casino Association of New Jersey, was quoted by Associated Press as saying many of the millions of people who live within driving distance of the resort "are not yet aware" of the alternatives to gambling it also offers.
The news agency added many casinos in Atlantic City could not currently self-finance a promotional drive, with some venues in bankruptcy, just coming out of it, or even fighting foreclosure.
