Jim Perry spent 18 years in Atlantic City working for several companies, rising through the ranks to become general manager of the Tropicana (or TropWorld, as it was then known). He spent those years honing his reputation as an imaginative "numbers guy," one who understands how to reinvest capital in a property to obtain the best return. Perry is going to need all that expertise and more now that he is the new president and CEO of Trump Entertainment Resorts, which operates the three Atlantic City Trump casinos and a riverboat casino in Gary, Indiana. After heading up Tropicana, Perry left to revive Argosy Gaming, a primarily Midwest riverboat company. Under his guidance, Argosy opened several state-of-the-art properties and saw its stock value soar. He retired two years ago to the Santa Barbara, California area, but was intrigued when approached by the reorganized Trump company earlier this year to join its board of directors. "I thought it was a good way to stay involved, stay active and keep my brain working," he says. "So I got named to the board and met the other board members. At the time, they were searching for a CEO to replace Donald because he said he did not have the time anymore to devote to this endeavor on a full-time basis. The search committee interviewed a series of candidates, but between the board and Donald, I think they concluded that I was the best candidate; the right guy at the right time." The board was clearly impressed with Perry's reputation on Wall Street and his ability to communicate with investors. His experience in Atlantic City was obviously a plus, as was his reputation as a "turn-around" executive. "This is a great opportunity for me to change people's lives," he says. "The greatest motivation I had at Argosy was to impact the employees, the customers and the shareholders. You seldom get opportunities like that and this is that same kind of opportunity." [Second Impressions] During his tenure at Argosy, Perry returned to Atlantic City on an infrequent basis. Earlier this year, upon joining the Trump board, Perry spent several days visiting old haunts and new developments. His impressions were generally positive. "The city is more vibrant, more visually pleasing," he says. "There are new buildings in almost every section of town. From the expressway to the tunnel, to the convention center and Boardwalk Hall, there's something new all over. (Former Tropicana president) Jack Galloway always said we needed to create critical mass for Atlantic City to succeed. Well, we're almost there. That's when we can become a huge getaway place for the Northeast where people can come for a long weekend, to relax, shop, eat, be entertained and to gamble." Perry is encouraged by the growth of non-gaming amenities in Atlantic City, comparing it to Las Vegas at the beginning of his career. "When I got into gaming in 1979," he explains, "in Las Vegas, breakfast was $2.99, a steak and lobster dinner was $9.99, hotel rooms were $19, and only a fool would pay for a show ticket. Eighty percent of the revenue came from the casino floor. "Casino revenue has gone up every year in Las Vegas in those 25 years. Breakfast is now $13.50, a steak dinner is $50, rooms are $200 a night, show tickets are $150, and less than 50 percent of the revenue comes from the casino these days. "We have to understand that we have a valuable product here in Atlantic City. We have to feel strongly that people are willing to pay for it." Perry also applauds the development of a younger demographic who find Atlantic City attractive and exciting. "It's the answer to a lot of other problems," he says. "Gaming on its own has a certain level of appeal. Gaming customers want to gamble most of the time. We need to now appeal to the casual gambler, the visitor who sees gaming as part of the experience but not the driving force. If we can do that, with shopping, food, bars, shows, you'll attract that audience. They will spend some time gaming, but it makes the entire experience more vibrant and more active." Perry isn't worried about looming competition for Atlantic City. "We're going to see some competition from convenience gambling in the next couple of years," he says. "But with the tax rates they'll be facing in New York and Pennsylvania, it's going to be difficult for them to create a competitive product." One of the reasons he took the Trump job is that he's bullish on Atlantic City. "For those who predict doom for Atlantic City, look at what the tribes have done in California," he says. "With virtually no taxes, and it hasn't even caused a hiccup in Las Vegas. We have to think of the competition to Atlantic City in those terms. We have to create a better product that has broader appeal. People are going to go to those places for the convenience gambling, but they'll always come back to Atlantic City." [Trump Turnaround] One of Perry's attributes is his ability to take troubled companies and revive them. Argosy was a marginal riverboat company, and he built it into such a powerful company that it was recently purchased by Penn National Gaming. At Trump Entertainment Resorts, Perry believes he has a sleeping giant. "I believe strongly there is an opportunity to leverage the Trump brand in a way that has never been done before," he says. "This will become a great operating company that has a great brand. I think both nationally and internationally the Trump brand can drive more business to any resort or jurisdiction." Perry says although Trump doesn't make the day-to-day decisions, he still plays a large role in the company. "It's important to make clear that Donald Trump is still chairman of the board of this company, that he adds value to this company, that he creates excitement by just having his name associated with the company. That's a great opportunity for this company," he says. Trump and Perry have a great relationship so far, he says. "Donald has been very supportive of me since our first dinner together," he explains. "He's interested in making sure we recruit the very best people for this thing to be successful." Three things are necessary for Trump Entertainment Resorts to reach the next level, according to Perry. "First," he explains, "we had to hire the quality people who we've hired thus far. We had to show we could be a credible company. "Secondly, We have to re-establish ourselves as a good operator. A friend of mine likes to say ‘when the only tool you have is a hammer, everything starts to look like a nail.' To the extent that all Trump properties were handicapped by the lack of capital investment, they kept hammering away with the tools that are available to them. Now that capital has become available, we have to find effective ways to reinvest that. There are no shortages of opportunities. "And finally, we need to find ways to reduce the leverage on the company." One of Perry's first acts was to lure Caesar's Palace President Mark Juliano back to Atlantic City as chief operating officer for the company. He says Juliano was the perfect candidate for the position. "The thing that I felt the company needed was someone who not only had experience in Atlantic City, but also had experience in Las Vegas and had seen the transformation that has happened out there firsthand," Perry says. "He understands the environment of Atlantic City, both politically and the nuances of doing business in this market. For someone seeking to build a corporate culture, Juliano's experience with one of the most recognizable gaming brands is invaluable. "He has intimate knowledge about how Caesars operated, which is different from the way I operated Argosy and is different than the way the Taj has operated," Perry says. "Having him and his abilities to supplement my abilities, brings a lot of value to the table." Perry wants to adopt some of the business strategy that fueled Caesars for many years. "When Caesars first started out, they believed they needed a new restaurant every year. We need to start thinking like that," he says. "But we need to think differently. When I look at the success of Carmine's in the Quarter at the Trop, I wanted to do the same thing with what is now Wellington & Chan's in the early '90s. This is a very successful concept and one that we need to look at here. We have the people in this organization who know how to do that and we need to give them the support to take the risks that make these things happen." [Incremental Changes] Perry stresses that he's going to make very few personnel changes; that he thinks the Trump executives and employees are well-suited to carry out his plans. "When I went to Argosy, I brought two people with me," he says. "Everyone else was already there. Later on, we might have changed a few more positions, but it was only after a period of time when we realized we needed a different level of experience or expertise." Perry will bring in some new blood, but otherwise, most people will remain in place. "I'm not looking for a lot of changes in the existing personnel," he says. "I think we will augment some open positions with some new folks. We need a general manager for the Taj Mahal, for example. We're not sure if we'll promote for that or bring someone in from the outside. I want people who understand what we're trying to do here." Perry again points out that even though Trump executives were handcuffed by the bankruptcy and debt issues over the past few years, the properties performed admirably. "If you look at the results for a five-year time frame, 2000-2004, they've held their own in a very competitive market," he says. Perry says he's learned over the years that it's important to maintain an honest relationship with the media and the community. With Argosy, it was Perry's transparency that encouraged Wall Street to invest in the company. He plans to do the same with the Trump company. "We're going to be very forthcoming about what we're doing," he insists. "There will be times when we can't talk about things because of financial disclosure issues or some other reasons, but the press and the community have to understand you're not trying to be cute or mislead them. You have to be candid when you are able to be."

By Roger Gros

Roger Gros is publisher of Casino Connection and Global Gaming Business, a the industry’s leading gaming trade publication. Prior to joining Global Gaming Business, Gros was president of Inlet Communications, an independent consulting firm. He was vice president of Casino Journal Publishing Group from 1984-2000, and held virtually every editorial title during his tenure. Gros was editor of Casino Journal, the National Gaming Summary and the Atlantic City Insider, and was the founding editor of Casino Player magazine. He was a co-founder of the American Gaming Summit and the Southern Gaming Summit conferences and trade shows. He is the author of the best-selling book, How to Win at Casino Gambling (Carlton Books, 1995), now in its third edition. Gros was named “Businessman of the Year” for 1998 by the Greater Atlantic City Chamber of Commerce.

Please login to post your comments.

More Featured Articles