Tribal Casinos Seeing Shift in Gaming- Part 2
Saturday, November 28th, 2009The only real indication at the tribal casinos that the economy is still struggling is the crowds shift. Hiles said, “They used to come in our doors and head to the big tables with the high-limits. Now people are going directly to the low-limit slots and card tables. Crowds are considerably smaller at the higher-limit slot machines and card tables.” For example, at San Manuel, gamblers were gathered around the $15-minimum blackjack tables, waiting for seats to become available. Empty seats were also hard to find at the 5- and 25-cent slot machines. The good news is that the smaller tables never ceased to be filled. They are bouncing with excitement and that is what solely could be bringing people back in. Operators know that without the excitement and buzz of the Las Vegas scene, many gamblers would opt to stay home. Hiles added, “As long as we can continue to replicate the high-energy Las Vegas club, we can stay alive. Players will still come.”
One player who knows the market well is Winnie Ng of Los Angeles. She brought her grandmother to the casino to play but said that the recession forced both of them to “keep their bets small this time. When you lose now you are thinking about it more,” Ng said as she left the casino. Then there is also Jessica Schilling of Long Beach. She went to the Morongo Casino because she received a $30 coupon to spend on gambling. She said, “I just came here for the free food.”
California tribes are in trouble and having difficult times managing after the recession. Under federal law the nation’s tribes have to submit regular financial reports to the National Indian Gaming Commission. Based on the most recent numbers, the tribes brought in about $7.4 billion in revenue in 2008 and that is down about 5.6% since the previous year. The tribal communities have had to resort to major layoffs and budget cuts within their own infrastructures to manage. Inside the Indian reservations, the drop in casino revenue means that tribes must cut the social service programs, that are primarily funded by gambling revenue, said William Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno. He added, “It’s not happy times in tribal councils.”

