Tuesday, August 24, 2010

Viva......Lehigh Valley?

Bethlehem Sands – A lose lose situation for gambling and service.




With the close of the second quarter and the introduction of table games to PA in July, two things were learned: local residents thoroughly enjoying having a full scale casino nearby and no casino is complete until its floors are covered with classic table games. The sudden euphoria that has taken over the gambling world in the Lehigh Valley has created such excitement that has significantly helped the local casino’s revenue and profits, but at the same time created a poor gambling atmosphere, where minimums are high and service is poor. The exclusivity offered by places such as Las Vegas, and even Atlantic City, is no longer the norm, with the upstart casino in the Lehigh Valley, as well as its longer turned neighbor up in the Poconos allowing, both novice and experienced gamblers to take in the sights and sounds, but at an elevated cost.

Prior to the arrival of table games in PA, the Bethlehem Sands had been an underperforming piece of the Las Vegas Sands Corp’s., global puzzle. With slot revenue failing to impress on a consistent basis, 80 employees were let go, and with their departure, so disappeared the basic client services one would expected at any casino: drink services and a clean environment. Despite minimal incentives to spur playing, the Bethlehem Sands saw stark improvement through late spring/early summer, positing its best quarter to date as it earned $3.7mm in profit and anxiously anticipated the higher demand that the mid-July unveiling of table games would bring. Patience and persistence proved to be profitable, with July revenue coming in at the highest levels ever for the casino, despite table games only in operation during the final two weeks of the months.

As table games have improved foot traffic through the casino, they have also created a number of unhappy patrons. Unlike its Atlantic City and Last Vegas counterparts, minimums for common games such as blackjack and roulette often are often upwards of $25k, where as in AC and Vegas, these games can be found for as low as $5, if not lower. In addition to the high minimums, at peak times, the casino can often be found operating at half to two-thirds capacity, leaving hoards of gamblers wandering and waiting for extended periods, in hopes that they will eventually get a chance to partake in the action. Despite these high minimums, it appears that the Sands’ approach, if you want to play you’re going have to pay, is working, as local residents, so thrilled with the idea of having a full service casino so close, are willing to make the those large wagers in order to gamble. The Bethlehem Sands has turned gambling into a more common, every day thing as it is no longer something you plan a vacation around, but what you plan a night out around.

For the near term, the Bethlehem Sands should continue to thrive, as table games remain the hot ticket item, the resort portion is completed and local/national retail shops being moving into the slowly renovated south side of Bethlehem. But unlike a diamond, the thrill of this casino will not last forever, and as patrons slowly succumb to the house odds with those high minimum bets, patronage will suffer and changes will need to be made. A lackluster experience does not have sustainability in today’s world and tough the Bethlehem Sands is offering something that Lehigh Valley residents have never had before, a local casino, it is still light-years away from matching the history, prestige, service, and excitement offered by the bright lights of Vegas and Atlantic City. Therefore, I say that if you want to have an exciting and close by gambling experience, head down the AC expressway and enjoy what places such a Caesars, the Borgota, and the Taj can offer. Until changes are made in Bethlehem, the best bet remains somewhere else.

Check out the sites below for some fun gaming action:
http://www.harrahs.com/index.shtml
www.theborgata.com/

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