CEO Jim Allen offered to meet with the Mayor, amid push to change the city's form of government

Hard Rock committed to Atlantic City, not encouraged by recent developments

The Seminole Tribe of Florida Chairman Marcellus William Osceola Jr., Hard Rock Atlantic City Partners Joe and Michael Jingoli and Hard Rock Atlantic City President Joe Lupo stood alongside of Jim Allen Thursday addressing over 2,000 team members.
2020-01-17
Reading time 3:14 min
Allen was at the casino Thursday to meet with employees at the property's first Team Member Town Hall Meeting. The company plans to reinvest at least $15 million in capital expenditures in Atlantic City in 2020, including an expanded sports betting operation. The casino ranked No. 2 in the city in 2019, though Hard Rock missed its business targets last year by about 10%.

The CEO of Hard Rock International says Atlantic City "is going in the wrong direction" and is in worse shape than when the global entertainment company bought its casino there nearly three years ago.

Speaking after an employee meeting Thursday where Hard Rock handed out bonuses totaling $2 million to nearly 2,900 full-time employees, Chairman of Hard Rock International and CEO of Seminole Gaming Jim Allen said the company is willing to be part of the solution in Atlantic City, but is not encouraged by recent developments, the Associated Press reports.

He said Hard Rock is not part of the move to change Atlantic City's form of government being pushed by the owner of Resorts Casino Hotel, the head of the city's main casino workers union and a retired state senator, "but we're becoming more aware of it as days go by." That plan, to be voted on in a March 31 special election, would replace an elected mayor with an appointed city manager, and would shrink the City Council from nine members to five.

Allen said that after Hard Rock invested $562 million into Atlantic City, "frankly the town's in worse shape today than it was when we bought the building." He noted the street lights have been out for two months on several blocks along Pacific Avenue, a sign of a continuing trend that concerns him. "When you're in a resort environment where safety and security is so important, if the city can't get something fixed as simple as the street lighting, then maybe a change is needed," he said. Allen made headlines last year when he said he was disappointed in the direction of Atlantic City. 

The top executive offered to meet with Mayor Marty Small, who on Wednesday assembled a coalition of political, religious and civic leaders to oppose the change of government plan. Small said Thursday he has been working with the electric company and a state agency responsible for planning in the city to restore functioning traffic lights. "I've been in office 103 days and we've already made changes, with plenty to come," he said. "I'm moving my agenda forward, and will meet with anyone that has the city's best interest (at heart), which Jim Allen does."

Allen was at the casino, the former Trump Taj Mahal, to meet with employees at the property's first "All is One" themed Team Member Town Hall Meeting since opening June 2018, and tout the successes of Hard Rock's first full year in Atlantic City. With $324 million in revenue from slots and table games, the casino ranked No. 2 in the city in 2019. But when online gambling revenue is included, Hard Rock was No. 3, trailing Golden Nugget and the Borgata.

The Seminole Tribe of Florida Chairman Marcellus William Osceola Jr., Hard Rock Atlantic City Partners Joe and Michael Jingoli and Hard Rock Atlantic City President Joe Lupo stood alongside of Allen addressing over 2,000 team members and union representatives from UNITE HERE Local 54, Local 68 Operating Engineers, Carpenters Union and Painters District Council 711 during two Town Hall events.

The CEO said Hard Rock actually missed its business targets in 2019 by about 10%, but still wanted to give its 2,872 full-time workers a bonus to motivate them to provide great service to customers. Most will receive $250. Managers will receive bonuses on a scale tied to their salary. Lupo said the bonuses are the first he can recall in Atlantic City in at least 15 years.

Allen said the company hopes to double bonuses next year if the casino's performance improves. He said the company, owned by the 4,200-member Seminole tribe of Florida, is “committed to Atlantic City” and is not going anywhere, and plans at least $15 million in capital expenditures in Atlantic City in 2020, including an expanded sports betting operation, one area in which Hard Rock trails much of its competition, due in part to joining the sports betting market last in the city.

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