Thursday, October 9, 2014

Sands Bethlehem plans massive expansion



Sands Bethlehem is arguably Pennsylvania's most successful casino, but new President Mark Juliano said the $800 million gambling complex will not be standing pat on its accomplishments.
Juliano, an elementary school teacher-turned casino executive who took over the Sands in June, said the gambling hall is embarking on a two-year expansion plan that looks to double its hotel to 600 rooms, add a convention center that can handle 500 people and bring in a Bass Pro Shops that will draw up to 3 million visitors a year.

More immediate, he's shuffling Sands' collection of restaurants, bringing in a celebrity chef to share the casino floor with Emeril Lagasse, and has ordered new policies to cut down on loitering by bus riders from the Asian neighborhoods of New York.


In his first extensive media interview since arriving from Singapore, the 36-year casino professional proclaimed that not only is the Bethlehem casino no longer on the selling block, but it's reinvesting and expanding so it can better contend with new competition that may come from more casinos in New York and maybe even New Jersey.

"I'm thrilled to be here," Juliano, 59, said from his second-floor casino office decorated with photos of the Rat Pack and Pope John Paul II. "This reminds me of the early part of my career in Atlantic City. We've got a lot of growth in front of us."

With not a strand of his salt-and-pepper hair out of place, and his neatly tailored navy suit wrapped around his 6-foot-3-inch frame, Juliano looks as if he stepped out of Hollywood central casting, but he's not the typical casino executive.

In 1978, as Atlantic City was poised to follow Las Vegas as the nation's next gambling mecca, the Philadelphia native and LaSalle University graduate was a sixth-grade teacher at St. Williams Elementary. His teacher's pay netting him just $104 a week, he decided to accept his uncle's offer to be a waiter on the casino floor at the new Resorts Casino.

After a summer of "schlepping" drinks to Resorts gamblers, Juliano went back to Philadelphia and — during the third day of the new school year — told a less-than-happy principal, Sister Carmel Regina, he was returning to Atlantic City.

"When you walked onto the casino floor, you knew something special was happening there," Juliano said. "I wanted to be part of that excitement. Plus, even delivering drinks cleared more than $104."

He's had a few promotions since then. Juliano spent six years working his way up the ranks at Resorts. He went on to work more than two decades running casinos for Caesar's in Las Vegas and Atlantic City and Trump Entertainment in Atlantic City, before landing at the Marina Bay Sands in Singapore.

Like Sands Bethlehem, Marina Bay is a Las Vegas Sands Corp. property, but it looks nothing like Bethlehem. One of the world's largest and most lucrative casinos in the world, it includes an open-air skypark spanning the roofs of three, 55-story hotel towers. Nearly 10 times the size of Sands Casino Resort Bethlehem, it cost $5.5 billion to build in 2010 and nets $3 billion in revenues a year.

During his four years there, Juliano rose to become chief casino officer, running a gambling floor that catered to millionaire table games players who routinely made six-figure bets at baccarat tables tucked away in private gambling salons.

He arrived in Bethlehem to find it riding through its most turbulent period. In February, hackers breached the casino's website and exposed personal information, including Social Security numbers of 30,000 to 70,000 employees and patrons. That was followed by the departure of popular President Robert DeSalvio, who left to open a Wynn casino outside Boston.
Then there was word that Las Vegas Sands was negotiating to sell Bethlehem Sands to Carl Icahn-led Tropicana Entertainment for more than $1 billion.

The sale never happened and Juliano arrived to pick up where DeSalvio left off. Sands remains the state's second-leading earner for slot machines behind Parx, but it has easily out-earned the 11 other casinos for revenues from table games like blackjack, roulette and craps for 33 consecutive months. In August, the $17.7 million it brought in was the most ever by a Pennsylvania casino.

Since he arrived, Juliano has been frequently reminded of the goodwill and respect DeSalvio spent five years building since opening the casino in 2009.

"Bob, unfortunately, is a very tough act to follow," Juliano joked.

While Juliano has not been nearly as visible or publicly vocal as DeSalvio, he's quickly putting his stamp on the casino.

Sands will never rival Marina Bay in size, but here's a look at some changes that have arrived with Juliano, or are coming soon:

Expansion: Bethlehem Steel's old No. 2 Machine Shop is slated to be converted into a 110,000-square-foot Bass Pro Shops that could draw 2.5 million to 3 million customers a year, Juliano said. In addition, with its 302-room hotel running at more than 90 percent occupancy, a second hotel tower will boost the number of rooms to 600. A 75,000-square-foot convention facility would be connected to the Bass Pro Shops, giving the complex the ability to accommodate more than 500 people for expos and conventions. All of that still needs the approval of Las Vegas Sands Corp. officers and Bethlehem City Council, but Juliano said construction could begin next year, with openings coming in 2016.

Restaurants: While Lagasse's upscale steakhouse and hamburger eatery will remain unchanged, his Italian Table is expected to be replaced with a Cajun-themed restaurant similar to the one Lagasse operates in New Orleans. In addition, a second celebrity chef — an Italian chef who specializes in home-style fare — will be brought in to start an Italian restaurant. Juliano would not identify the chef until later this month, but said it's not Mario Batali.
Chopstick, the casino's upscale Chinese restaurant, will be split in half and a noodle bar will be added to the right side.

Bus traffic: More than 50 buses a day flow in from the Asian communities of New York, giving Sands the busiest table games in Pennsylvania. But Juliano acknowledged the practice of bus riders' selling their free play cards and spending the next five hours loitering in the casino and surrounding south Bethlehem neighborhoods has been a frequent complaint by other casino patrons. To address that, he instituted a policy prohibiting bus riders from entering the casino with large bags, which some have used to carry in everything from bagged lunches to newspapers to laptop computers.

In addition, he said, security guards have been instructed to permanently evict anyone caught selling the $45 free play card they get for riding the bus.

"We're happy to welcome all of our bus riders, but we want them to be players, we want them to buy lunch here and we don't want them to be dispersing into the neighborhoods," Juliano said. "We want this place to be comfortable for everyone."

David Kravitz, a 70-year-old retired tax examiner who rides the Sands bus from Brooklyn, said the moratorium on bringing bags into the casino has been a shock to some riders who'd bring a day's worth of activities with them, but he's skeptical about any crackdown on card-selling.

"No one has trouble selling their cards," Kravitz said. "If they've made a policy change, I haven't seen it. Security still looks the other way."

Table games: For the first time since table games were legalized in 2010, Sands has reduced the size of the poker room
Other changes may include some casino remodeling.

Bethlehem Mayor Robert Donchez was among those who were disappointed to see DeSalvio leave for Boston, but after several monthly meetings with Juliano, those regrets have withered.
"He's a really good fit for Bethlehem," Donchez said. "I'm glad the sale [to Tropicana] didn't go through. I have a lot of confidence in what Mr. Juliano is doing. His commitment to Bethlehem is very strong."

Though Juliano maintains a home in Haddonfield, N.J., he spends five days a week with his wife of 34 years, Jackie, at their apartment on New Street in Bethlehem. They have five adult children.

When asked why he left one of the world's largest casinos to come to Bethlehem, he could have said the politically correct answer that he was drawn to the unique atmosphere that comes from a casino built into the former Bethlehem Steel site. Or that he saw the potential of the casino that state Gaming Control Board members call one of their greatest accomplishments.
But his answer was simpler than that.

"Singapore's a long way away," he said. "It's really nice to be home again."

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