When Bill Callahan took over at Ocean Casino Resort after 17 years at Borgata, he found a property mired in last place when it comes to the monthly New Jersey revenue reports.
“Yes, it had been getting better,” he says, “but there were still lots of holes in the operation that needed to be closed. Those holes started with the player database.”
“More than 95 percent of our database had a value of $100 or less” says Callahan. It was time for a change.
When Ocean first reopened, it had to claim a spot in the Atlantic City marketplace. Granted it had a lot to overcome from its initial opening as Revel where smoking was banned, comps were hard to come by, and the wayfinding on the property was a mess. A diversion to the quirky owner Glenn Straub did not help and an eventual sale to Bruce Deifik didn’t work. The chief lender, New York hedge fund Luxor Capital (no relation to the Las Vegas hotel of the same name) stepped in and revamped management and things began to turn around.
When Callahan was appointed general manager after an interim period, he, along with a talented and insightful executive team, identified many areas that could be improved, and things immediately began to pick up. Soon thereafter, the Illitch Group, which owns the MotorCity Casino in Detroit, bought 50 percent of the property.
“We have the best product and team members in the market. Our goal in the next few years is to become the No. 1 casino in Atlantic City,” he told the Associated Press. “This property is still in its infancy; there’s so much more that it can grow.”
Moving up the revenue ladder in Atlantic City is difficult, but Ocean has made progress. In July, often the best month of the year on the Boardwalk, Ocean posted the third-highest gross gaming revenue at $43.3 million, trailing only Hard Rock at $59.8 million and Borgata at $124 million (which has double the amount of hotel rooms). Ocean was one of only three casinos to increase its in-person revenue. The vast majority of revenue at Ocean comes from in-person revenue since its online gaming efforts are not fully ramped up, unlike the Borgata/BetMGM, which is one of the market leaders in iGaming revenue.
But it didn’t just happen. Callahan says the support of the owners allowed management to do the things necessary to improve revenues. That started with finishing more than 450 hotel rooms that were never fully built out. Those enhancements included upgraded suites that are reminiscent of a beach home.
“Our inspiration for the rooms,” says Callahan, “was a home in the Hamptons. They’ve got that light, beachy feel, airy, spacious and bright. We tried to keep the furnishings simple but timeless.”
A top-floor presidential suite includes 2 large bedrooms at each end, elegant baths with soaking tubs, all connected by several rooms that include seating areas, pool tables and bars.
But as with all rooms and suites at Ocean, it’s all about the views. Floor-to-ceiling windows reveal sweeping vistas of the Boardwalk and the coast seemingly stretching for miles out to sea.
“We have completed the rooms in our hotel tower and are pleased with the strong occupancy rates we’ve seen throughout the summer,” says Callahan.
He hopes to continue that rate throughout the shoulder season as he says the group sales department is hitting on all cylinders.
“We have an entire floor dedicated to meetings and conventions,” he says. “The interest has really increased post-pandemic and we have a number of quality groups booked after the summer.”
The revamped Ocean Rewards players club is all aspirational with the advantages multiplying as player reach higher levels. The new program is divided into four tiers.
- Signature: Entry level for all players
- Preferred: 3,000 tier points earned
- Prime: 20,000 tier points earned
- Reserve: Invitation only
Unlike other casinos in town, Ocean has revamped and relocated their players lounges. Avila Lounge, located adjacent to Ovation Hall, on the Meeting Level offers Preferred, Prime and Reserve Ocean Rewards Members delicious dishes prepared by Ocean’s culinary team.
“It’s a relaxing environment where our guests can grab a bite to eat without the stress of long lines,” says Callahan.
But the ultra-lounge is Luna’s (l.)—the former high limit room that has an ocean, beach and boardwalk view along with premium food and beverage offerings. Only a few players have access.
“Only about 20 percent of our guests qualify to use the club,” explains Callahan. “But they’ve developed a real camaraderie there and enjoy hanging out together on the busy weekends.”
The lounge is just a few steps from the casino’s high-limit pit, which was carved out of a previously unused part of the casino.
“It was space located under the HQ2 Nightclub,” Callahan says of the room which is bathed in sunlight with a high airy ceiling. “We were worried about the noise, so we had the techs in the nightclub turn the music all the way up to test the experience and we couldn’t hear a thing.”
Just outside of the high-limit room is a group of tables that also caters to the premium players.
“It makes this entire part of the casino more fun, more exciting,” he says. “The players love it.”
For the “whales” of the Boardwalk, Ocean features something unique in Atlantic City. The Loft is an intimate gaming lounge on the 44th floor with a breathtaking view of Atlantic City, the ocean and the Boardwalk. It’s open only for the biggest players, and can be activated in less than 45 minutes.
“We’ve had players who want to hang out with their friends in a quiet and private place,” he says. “Sometimes they want to be anonymous, but other times they just want to have a great time and get treated well.”
The slot layout on the casino floor has changed markedly since Ocean’s new executive team has arrived.
“The players didn’t know where to go and there was a lot of wasted space,” he says. “So we drew up a plan and presented it to our owners. The cost was going to be $2 million to make the moves. To their credit, they trusted us and it has paid off. Customers now enjoy easy navigation on the casino floor with a best-In-class gaming layout.
Another big change on the casino floor is the sports book. Ocean was the first casino in Atlantic City to open a dedicated sports book at a time they had an agreement with William Hill to run the book. While it was a standard book at the time, it didn’t create the excitement that Ocean executives had hoped for. When Caesars Entertainment bought William Hill, it triggered a clause that allowed Ocean to get out of the deal.
They turned the space over to Atlantic City’s SOSH Architects, who transformed the space into The Gallery.
“This is the most valuable real estate in the casino,” Callahan said. “So we ditched the easy chairs and added a few gaming tables and a center bar which is usually quite busy and is the focal point of the entire casino. It has energized the center of the casino.”
High above, the Balcony Bar gives sports bettors the best view of the massive screens surrounding The Gallery.
“Once football season kicks off,” says Callahan, “we expect this to be one of the most active areas of the entire property.”
Ocean’s entertainment is a key focal point as the team has ramped up its programming at Ovation Hall. Entertainment director and Atlantic City veteran Steve Gietka has scheduled some major acts through the end of the year including ZZ Top, Flo Rida, the Rascals, Diana Ross, Staind and the Atlantic City Jazz Festival, among others.
While initial improvements are complete, Ocean will continue to invest in the casino and hotel, however the teams immediate focus is on the food and beverage offerings. Within the past year the property has opened the famed NYC Institution, Serendipity3, a Hawaiian-Inspired casual concept called Makai and a high-energy hotspot in Nola’s Bar & Lounge. More unique F&B options, including a brand-new Starbucks are also on the horizon.
“We’re just getting started,” Callahan says. Ocean’s quest for Number-1 is still on the books and he’s confident his team can deliver.
Due to the current uncertainty due to the new government, the UK Gambling Commission (UKGC) is pumping the brakes on planned reforms. It announced September 2 it would not require operators to stop marketing to consumers who are considered to be at-risk of gambling addiction. The requirement is being postponed until February or perhaps indefinitely.
