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Casino ship works to make headway after bumpy start

The chips have been stacked against Atlantic Casino Cruises.
Since the company announced plans in March to bring a casino ship to Gloucester, it has been stymied by delays outfitting a ship.

It has faced mechanical problems that, at one point, left its boat adrift off the Florida coast. After the company finally arrived at Rowe's Wharf in March, it had to overhaul parts of its ship to meet U.S. Coast Guard requirements.

The 127-foot Ocean Club started ferrying passengers to federal waters three miles offshore, where casino gambling is permitted, on March 17. It was the same day the Coast Guard certified the ship as being safe to sail.

But by then, Atlantic Casino had missed much of Cape Ann's tourism season, which already was somewhat dampened by a recession and the residual effects of last year's terrorist attacks.

"This year, it's going to be hard to turn a profit," conceded Carlo Tarantino, the company's vice president of casino operations.

Despite unlucky beginnings, and what Tarantino described as "three or four months of hell," Atlantic Casino managers expressed optimism they will soon hit their jackpot.

They have launched an aggressive marketing campaign to draw gamblers to the boat. And they are trying to make their case -- that the boat is safe and a casino bargain -- one passenger at a time.

David Willman, the Ocean Club's captain and the company's vice president of marine operations, said the goal is "to get them out here and prove to them it's not what you've heard."

Atlantic Casino will be doing that under different leadership. David McCulloch, the company's president since last year, was expected to leave his post this week.

Tarantino noted McCulloch had two other job offers, and his departure was not related to the company's brief but difficult history. "He's well liked in the company, but he's picked his own way to go," he said.

Adam Kidan, a member of Atlantic Casino's board of directors, who has been helping guide the company in the interim, added that he was not yet sure who the new president will be.

Whoever that person is will inherit an operation with about 100 employees that Atlantic Casino managers describe as close-knit, along with a ship that has been overhauled.

Willman, the captain, said the company replaced the ship's steering system after its problems off the Florida coast. The transmission is also new, as are its electrical systems and lighting.

At the Coast Guard's suggestion, Atlantic Casino also rebuilt the Ocean Club's engines. "Pretty much everything has been overhauled and rebuilt," said Willman.

While most of that work has been done behind-the-scenes, what passengers find is a three-deck ship converted into a casino.

Two of those levels are devoted to gambling, with 132 slot machines and room to add more. Passengers can also try their luck at eight blackjack tables, a large dice table and a roulette wheel. The ship's twice-daily cruises include a buffet-style meal catered by a local delicatessen, as well as a bar and entertainment.

"People are coming out here, and they're winning, too," said Scott MacDonald, a Gloucester native who is Atlantic Casino's entertainment director.

It is a high-rolling experience that has been missing from Gloucester since 1999, when the Vegas Express left the port. That ship had been the first of its kind on the North Shore, and its success inspired others.

The Vegas Express arrived in 1998 and, a year later, two others came to Gloucester, touching off controversy that the harbor was being overrun by the vessels. That led the city to draw a narrow zone from which the ships could operate. Facing legal challenges, the others did not last long.

The Vegas Express, which also used Rowe's Wharf for its berth, was within the zone. But its two-year run ended when its parent company, Leisure Casino Cruises, hit financial rocks.

By the summer of 2000, the North Shore's only casino ship operated out of Lynn. Some maintained Gloucester was still ripe for the vessels, and a Florida company last year announced plans to bring a ship to the city. That vessel never arrived.

Then came Atlantic Casino, which was also organized last year by a group of Boston-area investors the company has not identified. But its business was anything but smooth sailing.

Atlantic Casino originally had planned to use a larger boat, the Atlantic Festival, but switched to the Ocean Club after hitting delays in outfitting the other boat. Managers say the company still plans to finish the Atlantic Festival and bring it to Gloucester to relieve the Ocean Club.

Then there were mechanical problems that plagued the ship after it left Florida for Gloucester, when it lost its ability to steer or anchor off the coast of St. Augustine.

The Ocean Club also had mechanical problems after it arrived in March. At point, the ship was escorted back to its berth. The problems also created a public relations struggle.

"I think they're a little bit behind the eight-ball because of the skepticism that was out there," said Michael Costello, executive director of the Cape Ann Chamber of Commerce.

But he and Atlantic Casino managers have noted Gloucester and the surrounding area have provided an eager market. Tarantino, the company's vice president, said he eventually stopped going to restaurants for breakfast because he did not want to encounter people asking when the boat would sail.

"They really want this," he said, "but not as much as we do." The challenge now is to translate that interest into business. Tarantino said the ship, which can accommodate about 275 people including its crew, saw 130 to 140 passengers during its first weekend cruises. Weekday cruises have been seen half that number.

"It's not where we want it to be, but every day it's a little bit more," said Tarantino, a 34-year veteran of the casino industry, who added that some upcoming cruises have been booked to capacity.

The company has allowed plenty of time for the growth. Atlantic Casino managers say they plan a 10-month sailing season, with a break coming sometime after New Year's.

The company is also looking to launch a second vessel from a port in the Southeast. Kidan, the director, said he could not yet specify a location because the company has yet to sign a contract.

But he added that it will only begin after the Gloucester ship is operating smoothly. "We had a late start but it's a very strong group of people, and a very strong operation," he said. "The only thing that's missing is the passengers, and they'll come in time."