Small Tahoe Casino Lays Off 28 Workers
In another setback for the gambling industry at Lake Tahoe, one of the lake’s smallest casinos has laid off 28 workers and eliminated its table games.
The move means Bill’s Casino in Stateline, Nev., will rely exclusively on slot machines for its gaming revenue. Slots are generally more profitable than table games.
“It’s more a function of the overall economy right now,” said Gary Thompson, a spokesman for the casino’s parent Harrah’s Entertainment Inc. “Things are pretty slow up in the Lake Tahoe area. … People are still visiting, but they’re not spending as much.”
Analysts have said the weak economy and the high price of gasoline could hurt Tahoe tourism this summer. But the Lake Tahoe Visitors Authority said recently that occupancy rates have actually risen 5 percent from last year.
Still, it’s not a good sign when a Tahoe casino cuts back in the summer, said gaming consultant Ken Adams of Reno. “This is really indicative of how bad things are if they’re doing it in…the height of the Lake Tahoe season,” he said.
Besides the economic effect, Adams said Bill’s, named for company founder Bill Harrah, has struggled for some time because it’s so small. It has just 18,000 square feet of casino space, compared to 55,000 feet at Harrah’s Tahoe and 137,000 square feet at Harrah’s other Tahoe resort, Harveys.
Tahoe casinos have been struggling to compete against the big Indian casinos in Northern California, and another one is set to open this fall: Red Hawk Casino on Highway 50, owned by the Shingle Springs Band of Miwok Indians.
Already, two of the big Tahoe casinos, the Horizon and MontBleu, are in Chapter 11 bankruptcy.
Source: Sacramento Bee
Wednesday, July 30, 2008
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