New Jersey approves casino chips worth less than us$ 1

ACH, the casino formerly known as the Atlantic City Hilton, recently got approval from the state Division of Gaming Enforcement to offer the cheap chips at its table games. ACH has adopted a value-conscious business model to go after low-rollers next year.

The casino requested permission for the new low-value chips on December 5, and permission was granted two days later, although the decision was not made public until last Friday.
ACH is considered one of Atlantic City's most endangered casinos due to its low market share and the cutthroat competition that's been hurting the nation's second-largest gambling market for the past five years. Last month, Pennsylvania surpassed Atlantic City for the first time in terms of monthly revenue. Las Vegas remains the nation's largest gambling market.

ACH received approval in November from the state Casino Control Commission for a rescue plan under which its owner, Los Angeles hedge fund Colony Capital, invests us$ 15 million in new cash in the casino and its lenders write off the casino's substantial debt in return for taking ownership of two Mississippi casinos Colony owns. ACH also will get us$ 9.3 million in insurance proceeds from an August 2009 flooding claim.

Michael Frawley, the casino's chief operating officer, said ACH planned to emphasize a new strategy of low-cost entertainment for customers. “This is part of a strategy we've been thinking about for quite a while now, and there will be more to come," he said Friday. The casino still has to submit design drawings of what the chips will look like.

ACH had been known as the Atlantic City Hilton until the hotel giant ended a licensing deal over the summer. Frawley said the casino would announce its new name within the next few weeks. The gaming enforcement division also approved a new zero-value chip to be used at the Golden Nugget Atlantic City. The casino plans to use the zero-value chips in roulette, but it wasn't immediately clear how.