By John Stearns RENO GAZETTE-JOURNAL
Stateline and northern Nevada hotel-casinos need to diversify their
visitor base as increasingly larger and more-sophisticated Indian
casinos compete for the same customers.
That was the consensus of a panel of tribal gambling experts who spoke
Wednesday during the 18th annual Nevada governor's tourism conference
at the Rio hotel-casino.
Las Vegas Strip resorts, however, should be insulated from the growing
number of tribal casinos in California and Arizona.
"The impact on the Strip will be minimal because most visitors come by
air, “said University of Nevada, Reno gambling expert Bill
Eadington.
And unlike those who might be tempted to gamble closer to home, Las
Vegas visitors are often interested in the city's entertainment, dining
and shopping offerings in addition to slot machines and table
games.
"Tribal casinos can't compete with the Strip," said Eadjngton, director
of UNR's Institute for the Study of Gambling and Commercial
Gaming.
Indian casinos, however, already offer the same slot technology as
Nevada, and all table games except craps and roulette, thanks to
Proposition 1A that passed in March 2000 allowing Nevada-style gambling
in California.
That means Reno and Laughlin resorts, for example, need to begin
selling their regions to a more diverse clientele, including
conventioneers and recreation-seekers, the experts said.
The California casinos could cost downtown Las Vegas up to 23 percent
of its gambling revenues and Reno 22 percent by 2004-05, one Wall
Street investment firm predicts.
Casinos in Laughlin and Tahoe could lose 16 percent and 15 percent,
respectively, according to the Bear Steams Co. report, Eadington
said.
"This is something you can't take for granted, ''he told travel and
tourism industry leaders.” You need to respond in a positive
way."
Suggestions offered by panel members included the cleanup of downtown
Reno and stronger marketing campaigns for special events, such as
Reno's Hot Summer Nights or Laughlin's annual River Run.
By 2007, with the anticipated construction of several other key Indian
casinos, Eadington estimates that northern California’s casinos could
exceed $600 million in cash flow on $1,8 billion in revenues. "Northern
California is lagging behind, but it's catching up.'' he said referring
to the 16 significant tribal casinos that have been established in
Southern California's San Diego and Palm Springs areas.
Rather than relying on beating the competition, some gambling
corporations are getting in on the action.
Harrah's Entertainment Corp., for example, was the first casino company
to embrace tribal gambling, said Carlos Tolosa, president of Harrah's
Western Division and a panel member.
"We believed early on (tribal gambling partnerships) could expand our
market and extend our brand,“ he said.
Las Vegas-based operator Station Casinos Inc. plans to run a $100
million casino planned outside Roseville for the United Auburn Indian
Community once it receives federal approval to open.
Wayne Smith, deputy assistant secretary for the Interior Department's
Bureau of Indian Affairs, said a decision on the Auburn casino could
come within 30 days.
"It's sitting on my desk” said Smith, a panelist.
Not everyone on the panel was optimistic about the continued growth of
California's tribal casinos.
The tribes that are interested in opening casinos continue to face
numerous political limitations, said Brenda Soulliere, chairwoman of
the California Nations Indian Gaming Association.
"Tribes are still fighting to find capital (to build casinos),"she
said'' and tribes have a tot of other challenges because they aren't
corporations. The casinos are government businesses."
