Pennsylvania Casino License Bidders Use Celebrities to “Brand” Their Proposals

When it comes to bidding for a casino license, there are more behind- the- scenes details to consider than might be apparent at first glance. An operator who places a bid for a casino license work hard at assembling a team of go-getters: a developer, a builder, a construction company, and teams of lawyers and negotiators. However, another crucial but somewhat elusive ingredient of a successful bid is less obvious: bidders need a celebrity to advocate for their casino.

That person may be a nationally known movie star, a singer, an athlete, or simply a very well known and respected local figure. This individual’s job is to bring his or her popularity to the negotiating table; to draw people’s attention to a particular bidder. They also may add credibility to the project, if their name is a very familiar one and they project a trustworthy image. In this, the casinos are employing a commonly used marketing strategy: branding. That is, they are trying to differentiate their product from the others, even though the products are all essentially quite similar.

The current bidding war over two Pennsylvania casino licenses provides the perfect arena in which to demonstrate this phenomenon. In this bidding war, with only two prizes, there are five casino operators competing. Four of the five have adopted the pick-a-celebrity strategy: Riverwalk Casino, Trumpstreet Casino & Entertainment Complex, Foxwoods, and Sugar House Casino.

Planet Hollywood, the operator of the Riverwalk Casino proposal, is to hire Sylvester Stallone to represent their product. Donald Trump’s Trumpstreet Casino project has recruited former 76ers president Pat Croce and the R & B group Boyz II Men. Foxwoods has brought Quincy Jones and former Phillies centerfielder Garry Maddox, as well as local personality Dawn Staley, on board. Sugar House Gaming is banking on celebrity professionals such as famous lawyer Richard Sprague.

The casino operator’s feature star does not generally participate in a particular project because he or she believes in it; rather, celebrities often have their own agendas.

Some are after money, in shares of the casino or in cold hard cash. Pat Croce, for example, will have a 10 percent share in Trumpstreet if it is built.

Others are looking to further a particular cause or issue. Dawn Staley, Temple University’s basketball coach, is associated with the Foxwoods proposal. If Foxwoods wins the bid, they will contribute a portion of revenues to the Dawn Staley Foundation, a charity to benefit inner-city children.

However, ultimately, experts are not quite sure how much branding adds to a proposal team’s chances for success. At the end of the day, they say, what matters is having a comprehensive plan that city officials believe will make for a viable addition to their communities. Moreover, they add, fame is fleeting, and the public’s adoration is famously mercurial; a celebrity may make a bad movie, go through a divorce, or even get a bad haircut, and suddenly, he or she is passé. Suddenly, the casino will have to disassociate from him or her.

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Pennsylvania Casino License Bidders Use Celebrities to “Brand” Their Proposals
January 2, 2006
When it comes to bidding for a casino license, there are more behind- the- scenes details to consider than might be apparent at first glance. An operator who places a bid for a casino license work hard at assembling a team of go-getters: a developer,