WATCH VIDEO> Revenue is NOT the problem in Atlantic City, cost structure is the problem. So says Tilman Fertitta; CEO of Golden Nugget & owner of 54 restaurant brands like Bubba Gump, Vic n Anthony’s and others.
The Golden Nugget CEO told Bloomberg News that AC has PLENTY of gaming revenue. $2.7 billion worth. 3rd largest out of 30-some states. Plenty of BIZ in AC, but Atlantic City is not business friendly due to very high expenses imposed on the local business.
Fertitta makes more revenue in AC than in Vegas…but….the cost of doing business in AC is very expensive. It’s a big reason why Atlantic City is still hurting.
Tilman Fertitta’s profit margin in Vegas is 20%. His profit margin in AC is 8%
Even though he brings in more TOP LINE revenue in AC, he actually takes home LESS in AC. $40 million less than what he takes home in Vegas.
Who does Tilman Fertitta blame for that?
- NJ Dept of Gaming