Paris Hilton is a businesswoman, author, TV star and creator of a successful fragrance line. But first and foremost, she’s a party girl. When the Simple Life siren turns up at Vegas nightclubs like Pure at Caesars Palace or Tao at the Venetian, it’s a virtual guarantee of buzz, publicity and standing-room-only crowds.

Hilton and her ilk have defined the current club experience: hip, fashionable and dominated by the Baby Bust crowd (also known as Generation X, with Gen Y right on its heels). They’ve inspired a whole new nightlife that’s spread from Vegas and New York to Miami, and in recent years has taken hold in Atlantic City.

It’s a crucial development. Atlantic City’s East Coast gaming monopoly is over, and as new gambling options crop up in Pennsylvania, New York and Delaware (with Maryland on line to expand gaming in the next few years), the city is working overtime to provide superior lodgings, more and better dining and retail, and top-flight entertainment. The goal: to offer a complete package that people can’t find elsewhere. Nightlife is an essential part of the strategy.

The shift started in Las Vegas first, when operators rethought the old notion that anytime visitors left the casino floor—to dine, to shop, to dance—it was money lost. By developing new options, Vegas built its customer base, and today, more than 50 percent of income for casinos on the Strip comes from non-gaming attractions. Atlantic City is following the archetype.

Star Treatment

By virtue of its name alone, the Borgata Hotel Casino & Spa has set the standard for diversification. In 2007, the New York Times called Borgata “the model for the ‘newer’ new Atlantic City,” with 35 percent of revenue that year coming from non-gaming sources: hotel rooms, shops, restaurants, concerts, spas and shows. And with nightclubs MIXX and mur.mur, Borgata has defined after-hours in the city.

When it opened in 2003, Borgata and nightclub MIXX were hailed by Promo New York as “the best two things to ever happen to Atlantic City.” With the property’s 2006 expansion came mur.mur, targeting the desirable 25- to-30-year-old demographic—the fun-loving, free-spending young customers who willingly pay to play.

“At our nightclubs, we looked specifically at trends going on in cities like Miami or New York, where the scene is the show, and guests pay to indulge in premium access,” says Borgata spokeswoman Noel Stevenson. “We crafted our nightlife experience with a focus on bottle service, one of those trends that has really helped further Atlantic City’s evolution, as well as great music.”

Bottle service—buying libations by the bottle, along with ice, mixers and preferred seating—is de rigueur in high-end nightclubs, and the markups can be breathtaking. Fortune magazine reported that club-goers don’t flinch at $145 to $500 for a $30 bottle of Grey Goose vodka, or $1,000 for Cristal or Dom Perignon. The sense of exclusivity and privilege is as heady as the champagne.

“People who want to live the lifestyle they read about in Us Weekly don’t just live in New York City or L.A.,” Andrew Fox of clubplanet.com told Fortune. “And club owners have finally figured that out.”

At MIXX or mur.mur at Borgata, guests look for “their own party within the larger scene,” says Stevenson. Celebrities and VIPs like Lindsay Lohan, Ashlee Simpson, Gwen Stefani and yes, Paris Hilton are “part of the party, they aren’t closed off in some private room.”

These days, even DJs are heralded as celebrities. When DJ AM turns up at Borgata, “he can bring in several hundred more nightlife goers because of his fan base,” Stevenson says.

It all translates to a big bump in revenue elsewhere on the property.

“Because of Borgata’s overall destination offering, we have many customers that make a weekend out of the experience—stay at the Water Club, have dinner at Izakaya, see a concert, experience a spa treatment and also play in the casino,” Stevenson says. 

Pool Party

The Pool at Harrah’s Atlantic City is another success story. The centerpiece of a $550 million expansion, the 23,000-square-foot Pool has turned Harrah’s from a day-trip drop point with an emphasis on slots to one of the most compelling nightlife destinations in town.

That’s just what its planners envisioned—but even they are surprised by the Pool’s success.

“In hindsight, we look like geniuses,” says Scott Barber, president of Harrah’s Atlantic City. “When we first started the expansion in 2004, we knew the Pool had to be a pinnacle marquee entertainment venue, a nightlife venue we could program by day parts, so there’s a little something for everyone. We decided to recreate a Vegas experience, but indoors, because of the climate here.”

The result is a multi-functional, tropic-themed oasis under glass, with a 25,000-square-foot heated pool flanked by towering palms. On weekends, up to 2,500 patrons per night crowd the place to dance and mingle. They also come to see celebrities: reality TV stars like Bridget Marquardt and Kendra Wilkinson (of Hugh Hefner’s Girls Next Door); gossipmonger Perez Hilton; DJ Victor Calderone; MTV curiosity Tila Tequila; and “celebutante” Kim Kardashian, recently seen on Dancing With the Stars.

As in Las Vegas, celebrities don’t just attract capacity crowds—they attract other celebrities, which lures even bigger crowds. Recent sightings at the Pool include actors Kevin Dillon and Kevin Connolly of Entourage, who gamely posed poolside with fans.

“For the younger generation, that’s the show—the show is seeing someone like Paris Hilton show up, just being a celebrity,” says Pat Merl, gaming expert, at University of Nevada, Las Vegas. “It’s still that Studio 54 scenario, the prestige of going to a club and getting behind the velvet rope.”

From a revenue standpoint, the Pool has been a hands-down winner. When it’s busy, “food covers go up, more hotel rooms are sold, and there is (an increase) in gaming revenue,” Barber says.

That’s no accident, but the result of smart orchestration. When Hef’s girlfriends (now ex-girlfriends) showed up at the Pool last year, they made sure to stop by the gaming floor, and their fans followed. As a result, table game business saw “exponential growth” that night, says VP of Entertainment Danielle Mohn.

Happy Hours

The same dynamic is at play at Providence nightclub at the Quarter at Tropicana, where athletes, centerfolds, TV stars and trendy DJs have young patrons lining up at the door.

Cross-promotional events involving both the casino and the club benefit each venue, with the spillover boosting other businesses inside the Quarter. Case in point: the scheduled Alvarez-Kotani “War at the Shore” bout at Tropicana last month. It was to have been followed by an after-party at Providence, and the same night, Playboy’s Miss February, Jessica Burciaga, was going to split her time between the casino (playing celebrity dealer) and Providence (tending bar). To pack the place to the hilt, Providence promised bottle service and a signed photo of Burciaga to the first 100 guys through the door.

Alvarez was injured on New Year’s Eve, and the cage fight was tabled. But it’s a good example of reciprocal arrangements that provide value across the board.

Providence Director of Operations Arthur Giordano says his young customers are fun-loving and free-spending—and that’s why they’re so valued.

“Even in today’s economy, they’re careless,” Giordano says. “They have no worries. They live at home or with three friends. They’re not married and they have no mortgage. And on weekends, they like to go out and party. That’s the market you want.”

Gioirdano’s seen customers in this group who think nothing of dropping $150 on a T-shirt by Ed Hardy and Christian Audigier, whose “luxury streetwear” is favored by celebrity icons like Madonna, Britney Spears and Kanye West. The pricey attire was a big hit at a Providence fashion show in 2008; more such shows are planned for this year.

Music, lighting and architecture complete the nightclub experience at the Providence, with DJs and light directors working atop two circular towers, girls dancing on raised platforms, and smoke machines adding to the vibe. In winter, Giordano says, “We blow snow.” It’s just the scene 20- and 30-somethings look for: “a place to party and forget about life as you know it.”

Rock the Casbah

When it comes to nightlife, a club at Trump Taj Mahal put Atlantic City on the map, years before other casinos realized the value of the “careless” customer. In 2000, the Casbah opened its doors and caused a sensation. One review at the time began with just one word: “Finally!”

Today, with more and newer competition and more discerning customers, the trend-setting venue stays ahead of the curve, says Steve Gietka, vice president of entertainment for Trump Entertainment Resorts. 

“Great lighting, architecture, furniture, sound, talent, service—all are absolutes in a successful club operation,” Gietka says. “Club patrons are typically well traveled and have frequented clubs around the country, if not the world. Their club expectations are not met at the corner bar.”

In the face of all comers, the Casbah still rocks. It’s got the look: industrial chic with dancer cages and phenomenal light effects. It’s got the sound: seismic house and hip-hop. It’s got the numbers: according to Nightclub & Bar Magazine, up to 2,200 club-goers have been known to visit the Casbah in the winter, and twice that in the summer.

Now that the Taj’s new hotel tower is open, “there will be a renewed focus on the Casbah to drive more customers to the property,” Gietka says.
   
Mixed Media

How do the new nightclubs and ultra-lounges reach that desirable Gen X-and-Y demographic? More and more, the message is delivered via internet and text blasts, and nightclubs go the extra mile to add patrons to their database.

One way Providence captures e-mails is through introductory specials (free admission or a complimentary drink in exchange for contact info), and Giordano reports that only 5 percent of customers later ask to be removed from the list. The club also grabs customer data by using a computer program that lets club-goers text each other on-site, with the messages subsequently registering on giant video screens. When they text those all-important “Can I buy you a drink” messages, their contact information is registered.

Casbah, too, uses a mix of traditional media—print, broadcast, billboards—along with electronic communication.

“When it comes to marketing, we do it all,” says Gietka, “but the internet, texting, email and our website continue to grow as the most effective ways to reach the club demo.”

David Pena, the impresario who created Boogie Nights at Resorts and the karaoke bar Planet Rose at the Tropicana, says he relies on “vibrant print ads, radio, and the internet.

“But always the very best way to market is a strong word of mouth,” Pena says. “Having one person who’s had a great time at your place tell someone else about it still rules. And to have someone at the front desk of a hotel, a concierge or bartender recommend your place to a guest is priceless.”

Boogie Wonderland

When it comes to customer appeal, Boogie Nights at Resorts—unlike uber-cool clubs like MIXX and mur.mur at Borgata—casts its net wide.

Up to the eaves in kitschy memorabilia of the ’60s, ’70s and ’80s—including video clips of vintage TV programs like The Brady Bunch and The Bionic Woman—the phenomenally popular disco club is a hit with kids and Baby Boomers alike. It’s not so much cool as hilariously campy, and that’s just how founder Pena likes it.   

“I’ve never tried to hone in on one demographic,” he says. “I believe it’s my job to show everyone a good time.”

Pena attributes the success of Planet Rose in part to American Idol: “We all have an inner superstar just busting to come out; sometimes all it takes is a martini.”

And Boogie Nights? “Boogie Nights is the club that I always wished existed—now it does. And thousands of other people apparently feel the same way. It’s the best feeling watching so many people under one roof dancing, smiling, kissing and truly having a great time.”

Resorts spokesman Brian Cahill says Boogie Nights is ideal for the city’s flagship casino, which eschews the prevailing hipper-than-thou vibe for plain old fun.

“With so many other techno clubs in town, Boogie Nights is the alternative,” Cahill says. The music—from the Bee Gees, the Village People, Donna Summer—grabs people from 21 to 55, and then some.

Open since Thanksgiving 2007, Boogie Nights has “brought a whole new energy to Resorts’ dining level,” says Cahill—an energy that stokes attendance at casino restaurants and bars, and brings concert-goers from the Superstar Theater in to dance after the show. The music is played in many parts of the casino, attracting gamblers and other visitors to the dance club.

“Our 25 Hours bar has become a meeting place for people on their way to Boogie Nights,” Cahill says. “Bachelorette parties start with a cocktail at the bar, head up to Boogie Nights for some dancing, and later on head to the casino floor. It’s enhanced the branding of the property and creates a buzz throughout the entire building.” So do the stars who drop by, like David Cassidy, and “Wonder Woman” Lynda Carter.

Last Call

The Borgata may be the venue to beat for fabulous nightlife, but the direction is clear for every casino in town, and for casinos in the pipeline, like Revel and Pinnacle.

“We knew we had to change the business model here,” says Barber. “We can’t depend on the day-trip market anymore.”

Adds General Manager Daren Smith of Game On! at the Pier at Caesars, “If you want to build a better mouse trap, create entertainment that not only gets people to the tables, but gets them to enjoy all the amenities.

“Young people are the cornerstone of nightlife,” says Smith, “and the future life’s blood of casinos.”

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