Online Casinos Directory

One of the best things about the market of gambling today is that more and more companies are joining forces to create bigger gambling companies. One joint venture that is making news in the market now is the joining of Atlantis Internet Group and Cake Poker. Cake Poker of course is a premiere poker website online today. It is one of the best websites for not only poker play, but also poker tournaments. If you love tournaments, then you can take part in them on a daily, weekly or monthly basis at this casino. The joining of the two companies though is creating an even bigger advantage for poker players from all over the world. The companies are forming a high-end poker network for gamers in US tribally-regulated casino groups.

Some critics were quick to cite the move as premature for the companies. They believed that since the US is still debating ways of amending the UIGEA, or Unlawful Internet Gambling Enforcement Act, it is a bit premature for companies to start working with tribally owned casinos. This isn’t the case though. Cake Poker’s move is the perfect thing to do to put them in an opportune position. It is no secret that US legislators are pushing for changes to the UIGEA and trying to legalize and regulate gambling. The changes are opening the door to more problems in the future though. Cake Poker and Atlantis Internet group are both trying to position themselves to help tribal-based casinos move into the world of online gambling. Many tribe-run casino operators know that they are not going to survive if they don’t put together some viable options of bringing gaming into the world. Though they relied on land-based gambling for years, now with the new addition of online gambling companies, it is getting more and more difficult for them to keep up and compete. They have to be ready to move with the market with changes that are going to make them competitive. It may take time, but tribally-owned casinos are making changes that are going to bring more gambling fun to the gaming public. The hope is that they will bring in more revenue, but also expand their own businesses so they can remain integral to the market as it expands.

Durign the recession, many industries suffered. With unemployment rates high and spending low, markets were at a loss for revenue and had to fall back on cutbacks, layoffs and restructuring to survive. It’s no secret that the gambling industry was one of the hardest hit. The reality is tha though wagering is fun, it isn’t a necessity. when people were left with drastically smaller incomes, they had no choice but to cut out discretionary spending from their budgets. That of course included gambling fun.

Not only did gambling suffer, but areas that relied heavily on tourist income also suffered. Las Vegas, a city that mostly relies on gambling for its revenue, is still trying to recover. The foreclosure rate in the city was at 60% at its highest and that is a huge number for one singular city. Now that the recession is over, many cities are still in turmoil and so are many casinos. Indian-owned casinos are feeling the pinch too. Many Indian-owned casinos are having additional problems with economic recovery now that the rise of the internet is continuing to grow. Internet gambling is taking away from their markets and that means that millions of dollars is no longer flowing into their doors.

In a lot of ways, Indian-owned casinos are akin to Las Vegas. Both built their economies on the field of gambling– almost solely. There is a huge danger with that. Even cities like Detroit, Michigan know how precarious a move that is. Detroit was a manufacturing hub of the states and when the recession caused many in the industry to close down, it left the city a barren wasteland. Detroit is filled with foreclosed houses and empty warehouses and buildings. The same can be said for Las Vegas and Indian-owned casinos. Both are in danger of losing even more of their revenue in coming months. The recovery from the recession and market shifts is proving to be a difficult one for both entities to manage. Only time will tell whether or not the Indian-owned casinos and Las Vegas are truly able to recover or if their markets are changed for the long run. It will take time and both may have to come up with a new business model for future success in the market of gambling.

Tribal casinos in Washington, once thought to be a sure bet, are now experiencing a decline in revenues.  Some casinos’ revenues have dropped thirty percent in 2009. Many Native American tribes are battling with lenders, struggling to make payments, or closing their casinos all together.  Tribes that have been hit include the Nooksack, Snoqualmie, and Skokomish tribes. Before these recent downturns, tribes and tribal casinos never had to think much about strategizing their business.  Any marketing campaign that seemed to be a good one was implemented with fair to positive results. W. Ron Allen, chairman of the Washington Indian Gaming Commission said, “We were riding a high wave, and a long one.” 

Craig Parmelee, team leader for gaming and lodging at Standard & Poor’s says, “It’s like nothing we’ve seen, over the past two years.  Going back to 1997 – 2007, never did more than two gaming companies default, and in many years none did, and in the past two years, 20 did.” Before the economy was facing the hardships it currently is, lenders never thought to look at the fine print, or delve into the risks of investing in tribal casinos.  In fact, non-tribal, commercial casinos were feeling the consequences of the recession long before the tribal casinos felt it.  Indian casinos have been consistently stronger performers than non-tribal casinos, making the 2009 loan defaults the more notable.

Investing in a tribal casino poses unique risks for both the tribe and the lenders. For the lenders, if the debts go bad, they may be out of luck.  The property cannot be foreclosed upon because it is held in trust for the tribe by the US government.  Also, the creditors can’t take over operations because only the tribe is licensed to run the casino.  As for the tribes, everything is at stake, their whole way of life.  While some money made from the casinos goes directly to tribal members in per-capita payments, profits are also used to fund college scholarships for members, and for government services. There are, however, some success stories from 2009. While revenues at some individual casinos may have fallen drastically, total tribal revenues actually rose slightly.  In Washington, total tribal-casino revenues were up slightly to $1.6 billion in the fiscal year ended June 30, 2009, according to the Washington State Gambling Commission, from $1.5 billion in 2008.

The 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.”

Although the recession hit casinos hard, some are still doing great. Just ask the Southern California’s San Manuel Indian Bingo and Casino in San Bernardino County!  Both are experiencing almost every seat at the 25-cent slot machines is filled. In both casinos, gamblers have to stand around and wait for their turn at the blackjack tables. Also, the reels on the penny slot machines are going constantly at both facilities.

Despite the people still being there, one thing is for sure. People have cut back on spending. No longer are the bigger slot machines being used…in fact, slots over $10 don’t have much of a fighting chance with gamblers. Mike Hiles, a tribal information officer for the Soboba Band of Luiseno Indians, said, “We have the same amount of people and they come in as frequently, but they are just spending less.”  Hiles operates a casino that has 2,000 slot machines, 20 gaming tables and two restaurants in the San Jacinto area. 

Part two coming next.