online craps casinos

New Owners of Resorts Casino Spends in Rebuilding

Posted on April 24th, 2011

News Sponsored by Go Casino

Rated 5 Stars by crapsonline.com

Read Review

Visit Casino

Download Software

————————————————

New owners of the Resorts Casino Hotel, DGMB Casino LLC, are not only spending a lot of money, but also expending tremendous effort to revive the business after its turnover last December. DGMB Casino LLC is currently owned by Dennis Gomes, a veteran casino executive and Morris Bailey, New York real estate magnate bought Resorts Casino at $31.5 million. In efforts to win back lost customers and to revive the business, the owners are taking extreme measures in attracting customers to the casino hotel. One of the strategies is inviting American singer David Cassidy to perform at the Casino Hotel’s Superstar Theater, simulated flash mobs dressed as casino workers dancing around and on diners’ table, offering cheap rates (even cheaper than discount motels) for their hotel rooms during the week and handing out cash to their new customers to draw in gamblers. “It’s a great thing to bring additional business in, but you can see how costly it is for us. The benefit is for the long term. Believe me, it’s stressful.” said Gomes.

Gomes, who is also the Chief Executive Officer of Resorts Casino, has taken measures as far as firing several cocktail servers who did not fit their new revealing and sexy costumes. Gomes and his partner Morris Bailey are trying to rebrand Resorts into a Roaring 20’s theme to attract younger customers. To achieve the result, the owners are creating an edgier, sexier atmosphere by having cocktail servers dress up in costumes like that of flapper girls in 1920s, backless skimpy costumes, cut high up the thigh, and accented by fishnet stockings and high heels. The changes proved to be a success but fell a little bit short as the casino is still losing money. Gomes predicts that come July this year the casino would start earning profit under their management.

Resorts Casino Hotel was established in May 26, 1978 and it became one of the nation’s first casino hotels outside Nevada. For many years, Resorts Casino was profitable until competitors sprouted in Atlantic City, dividing the market. It was even more difficult for Resorts to keep customers when casinos started opening in Philadelphia suburbs in late 2006. Resorts Casino was previously owned by Resorts Casino International (RIH) until it turned over its ownership in late 2009 to a group of lenders, RAC Atlantic City Holdings LLC, after Resorts International defaulted on its $360 million worth of mortgage.

Controversies and lawsuits between parties came shortly after the sale when a utility bill worth over half a million dollars were not paid by the previous owners resulting to a brief cut-off of the cooling and heating systems of the casino hotel for two hours last March 18. According to the new owners, they were not told by RIH about the unpaid utility bill. On the other hand, RIH blamed RAC Atlantic City Holdings LLC for the unsettled bill. In spite of the lawsuits, Gomes and his partner Bailey are focusing on reviving Resorts Casino Hotel in hopes that more customers, apart from their typical senior citizens slots player, will be drawn in to Resorts’ new “look” and atmosphere.

Dennis Gomes has a wide experience in the casino industry, held top positions at the Tropicana Casino and Resort, Trump Taj Majal Casino and Resort, the Golden Nugget in Las Vegas, and Hillton’s Nevada’s properties. He was also Nevada’s top casino corruption investigator. He owns Gomes Gaming Inc., which partnered with Bailey’s JEMB Realty Corp. to finance the acquisition of Resorts Casino. Morris Bailey is a 72-year old businessman and New York real estate developer who was born in Atlantic City. He owns 52 Burger King Franchises in New Jersey. His acquisition of Resorts is a chance to go back to the town where he grew up. As a young boy, he spent most of his time in Atlantic City’s beaches, Boardwalk and at the old amusement piers. “Atlantic City has always been a destination resort on the East Coast,” he said. “It’s always been No. 1, going back 100 years. It is an extraordinary beachfront, Boardwalk and tourist environment, even absent gaming.” Bailey said.

The two businessmen are predicting to break even this year.