Hard Rock hopes to bring Vegas sensibilities to Atlantic City, NJ with its new casino

"We're all competing for customer trip frequency. But if you offer a quality experience, Hard Rock Atlantic City has so many amenities ... that others just can't compete with," says Chairman Jim Allen.

2018-06-29

United States

Reading time 1:27 min

With this new opening, Hard Rock could be taking a risk. Over the last five years, five casinos shuttered their doors in Atlantic City as they struggled to attract customers in the face of legal casinos in nearby states, including Connecticut, Pennsylvania, Delaware, and Maryland.

Hard Rock International Chairman Jim Allen hopes to bring Las Vegas to stuggling Atlantic City with the inauguration of the brand's new casino, officially open since Thursday.

"We would certainly agree that Atlantic City is still primarily a gaming total gross revenue market," said Allen, also CEO of Seminole Gaming which owns Hard Rock. "Our goal is to continue to try to move that to where it's not 80 [to] 90 percent, but we eventually get into a 60 [to] 65 percent gaming, 35 [to] 40 percent or so nongaming," Allen told CNBC's "Squawk Box" Thursday.

The Hard Rock Hotel & Casino Atlantic City received approval Wednesday from the New Jersey Division of Gaming Enforcement. It opens alongside Ocean Resort Casino, which also received permission just hours later from the state regulators. Hard Rock replaces the old Trump Taj Mahal. Ocean Resort Casino, which also opened Thursday, replaces the old Revel.

Hard Rock — which has a network of signature cafes, hotels and casinos in 50 countries, including Vegas — could be taking a risk. Over the last five years, five casinos shuttered their doors in Atlantic City as they struggled to attract customers in the face of legal casinos in nearby states, including Connecticut, Pennsylvania, Delaware, and Maryland.

Unlike Las Vegas, which has been steadily moving towards nongaming revenue, Atlantic City has still relied heavily on gambling.

However, Hard Rock plans to try to attract customers to its Atlantic City location through live entertainment, bringing in big names such as rapper Pitbull and singer Carrie Underwood.

"We thought it was a great opportunity for the Hard Rock brand," Allen said Thursday, adding that New Jersey residents were really rooting for the new casino.

"No matter how we look at it, the casino customer is about trip frequency," he continued. "We're all competing for trips. But if you offer a quality experience, [Hard Rock] Atlantic City has so many amenities ... that others just can't compete with."