Resorts Casino: From Near Death to Big Profit

Like many Atlantic City casinos five years ago, Resorts Casino was struggling just to keep their doors open on the heels of a U.S. economic downturn. Fast-forward to today and they’re set to make a big profit on the 2015 year.

“It was dead, and it has been brought back to life,” says Mark Giannantonio, President of Resorts. “The year I started here three years ago, this place lost $12 million. Last year we made $2.5 million. And this year we will do far better than that.”

Aside from the large profit that they’re expecting, Resorts also recently opened a $9.4 million expansion to their conference and meeting space. Given Atlantic City’s increasing efforts to improve their convention business, this should definitely be a boon to the once-struggling casino.

It was just over five years ago that Colony Club, which once owned Resorts, was ready to exit the premise and let lenders sort out the selling process. Shortly after this, casino executive Dennis Gomes and real estate investor Morris Bailey bought the property for $31.5 million, thus paving the way for a revitalization effort.

Unfortunately, Gomes ed away in 2012, but Bailey carried the torch and continued improving the casino on the path towards profitability.

“We had a moment of truth: walk away or go forward,” Bailey tells NBC Philadelphia. “That’s why we decided to stay; we believe in Atlantic City. The key was making a financial commitment.”

With Gomes gone, Bailey made a strategic deal to bring in the Mohegan Indian tribe, veterans of running a successful casino business. In exchange for running the day-to-day operations at Resorts, the Mohegans received a 10 percent ownership stake in the company. The partnership also gives Resorts the ability to access customers from Mohegans’ Connecticut and Pennsylvania casino database.

Aside from bringing the Mohegans aboard, Resorts Casino has also done an excellent job of boosting their non-gambling amenities. A big step towards making this happen included opening the $35 million Jimmy Buffett-themed Margaritaville restaurant and bar, which has been a huge hit among visitors.

David Schwartz, director of the Center for Gaming Research at the University of Nevada-Las Vegas, is very impressed by all the moves that Resorts Casino has done to make themselves competitive again.

“They have reinvested in their property offering people a reason to visit,” says Schwartz. “Mohegan’s management has given them an experienced team and a larger promotional reach. The combination of investing in non-gaming attractions and offering value to those who want to gamble in Atlantic City appears to be paying off.”

Given that Resorts just posted a $4.8 million profit – 153 percent better than last year’s second quarter – they seem poised for great success moving forward.