Why Donald Trump Chose Atlantic City for His Casino: A Closer Look

One of the most intriguing questions in the casino industry revolves around why Donald Trump, a long-standing New York figure, decided to build his casino in Atlantic City, New Jersey instead of following the more conventional choices like Las Vegas, Nevada or Reno, Nevada. This decision was a reflection of his deep understanding of his target audience and the local market dynamics.

A New Yorker's Perspective

Trump, being a New Yorker, was acutely aware of the mindset of his fellow New Yorkers. He believed that New Yorkers favored a local form of entertainment rather than a road trip to Las Vegas. The reasoning was straightforward: why travel to a far-off place when you can enjoy the same activities closer to home? This belief wasn't entirely unfounded. The proximity of Atlantic City to New York and Philadelphia posed unique advantages, which are explored further in this article.

The Developments in Las Vegas

The Las Vegas model, which emerged as a successful business strategy in the 1960s and 1970s, had its own unique circumstances. Las Vegas and Reno were intentionally situated miles away from major urban centers, such as Los Angeles and San Francisco. This distance ensured that people wouldn't be commuting to these cities for gambling and then back to work the next day. The solution to this problem was to create a comprehensive resort experience with hotels, dining, entertainment, and other amenities. Legends like MGM and Wynn capitalized on this model, offering the best dining, shows, and gaming experiences.

The boom in Las Vegas was undeniable. The easy availability of gambling combined with the creation of a complete destination led to a massive influx of tourists from across the United States. Even after the legalization of gambling in more places, the model remained robust, as resorts became popular destinations in themselves.

Atlantic City: A Closer and Different Market

Atlantic City, on the other hand, presented a different set of challenges. Unlike the Las Vegas market, Atlantic City is situated much closer to major metropolitan areas like New York and Philadelphia. These cities are just a day trip away from Atlantic City, which meant that visitors could easily combine gambling with other activities without the need for an overnight stay.

For example, someone from New York could leave for an early morning shuttle, have a lunch in Atlantic City, enjoy the casino, and then return home in the evening with ease. This proximity meant that while the casino attracted a significant number of visitors, it couldn't compete with the extended-holiday experience that many Las Vegas and Reno resorts offered. Additionally, while New York and Philadelphia had plenty of entertainment options, including high-profile clubs and shows, Atlantic City struggled to match these.

The Lack of High-Rollers in Atlantic City

Another crucial aspect that affected the success of Atlantic City's casinos was the profile of its clientele. While cities like New York and Philadelphia do have high rollers, these individuals predominantly preferred the more luxurious and glamorous experiences that Las Vegas offered. They were attracted to the high-end casinos, top-notch dining, world-class shows, and the overall resort lifestyle that Las Vegas provided.

In contrast, Atlantic City had to focus more on the volume of visitors rather than the quality of gamblers. The city's strategy was to attract numerous visitors who could indulge in the casino for a few hours, perhaps enjoying a buffet meal and then returning home. This business model, although effective, couldn't compete with the more sophisticated and high-end experience that Las Vegas provided.

Conclusion

Donald Trump's decision to build his casino in Atlantic City was a reflection of a deep understanding of both the market and the target audience. While Las Vegas and Reno had developed a comprehensive resort model that worked well, Atlantic City's proximity to major cities offered a different market niche. By understanding this, Trump opted for a strategy that focused on volume and local appeal, setting the stage for the casino's success in a market that couldn't compete with the allure of a far-off destination resort.