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Abysmal numbers for Stateline casinos


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Lake Tahoe was a bit of a ghost town in April and it was even worse in the casinos.

Stateline’s casino revenues dropped 42.3 percent last month compared to 2013. This was the largest drop in the state.

The state Gaming Control Board today said revenues throughout the state fell less than 1 percent (0.27 percent) to $852 million, compared to $854.3 million in 2013. State numbers have fallen three out of the first four months of the year.

— Lake Tahoe News staff report

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Comments (28)
  1. TT says - Posted: May 28, 2014

    Get used to it. That mammoth casino that they opened just NE of SF will be the death blow to the run down dumps in Tahoe. I supposed it’s about time for another “remodeling bombing”.

  2. Biggerpicture says - Posted: May 28, 2014

    48 states now have some form of legalized gaming. (and that doesn’t even count online gaming)

    Nuff said.

  3. reloman says - Posted: May 28, 2014

    we cant look at numbers on a monthly basis, a bad winter will hurt that months numbers, the month before they were way up. since Redhawk opened, gaming here has become another ammenity, its the beauty here that is the draw, not the great new casinos.

  4. Steven says - Posted: May 28, 2014

    Casinos answer to low gambling ? Party all night ! Advertise and bring in younger people who want to party.
    South Lake Tahoe will never lose the party reputation until the casinos stop promoting the all night drinking and partying. And where do these party goers stay ? In our neighborhoods in vacation rentals ! Stop the parties and get the drunk, loud obnoxious vacationers out of our neighborhoods.

  5. 4-mer-usmc says - Posted: May 28, 2014

    Little snow and Native American gaming both took big chunks out of the South Shore’s business, and if you add to those factors the targeting of a very low quality visitor demographic you’ve got a 42% drop in revenue. Those classless, obnoxious people who come up with $20 in their pockets are only intent on scoring all the freebies they can get and they aren’t spending any money in our community because they don’t have any money to spend. What they’re actually doing is running out the few decent visitors who had remained loyal but have since declared that they will be going elsewhere from now on because they don’t want to be subjected to vile people. Trickle-down effect: the casinos make little money and their staff that’s dependent on tips makes almost nothing.

    I don’t understand why people say we need more tourists to make more money, or that really dumb economic analogy that when “the tide rises all boats float higher”. What we need are classy, more affluent tourists with some money to spend and a lot fewer degenerates with no money. It’s called quality, not quantity.

  6. cheepseats says - Posted: May 28, 2014

    Completely agree with 4-mer … World-class and $20 in your pocket do not go hand-in-hand, unless you’re shooting for a world-class waste of time.

  7. Parker says - Posted: May 28, 2014

    Numbers do fluctuate. Weren’t March’s numbers up? But I do believe there is on the balance a fairly steady downward trend line.

    Anyway, it’s unfortunate that Harrah’s/Harveys seems intent on taking South Lake Tahoe Gaming down with them?! I guess they enjoy having a stranglehold?

    But their numbers in Tahoe are on the same steady decline as the rest of Caesars Corp. And Montbleu and Lakeside’s #’s have been doing better than the Stateline reported #’s.

    Hence, to turn around this trend, a good start would be if Caesars sold off at least one of its 2 Tahoe properties to help reduce its unsustainable over $20B debt. More competition, more casinos working to get people here, would help our town!

  8. Perry R. Obray says - Posted: May 28, 2014

    Seems the casinos might be relegated to conventions and outdoor summer concerts.

  9. l says - Posted: May 28, 2014

    I agree steven,4mer,cheepseat. This is hitting the nail on the head. You have to aim higher to bring in a more civil and classier clientel. Unfortunately the snow globe does not help in this effort. It only degrades the quality of life all year long for the rest of us who LIVE here as it promotes tahoe as an area to come up and be rude and crude for those with little money to spend. Talk about selling out the town for a few bucks. Its not worth it for its long lasting negative effects.

  10. Biggerpicture says - Posted: May 28, 2014

    Regardless of the class distinction (high rent, low rent) of gamblers, by virtue of gambling being so wide spread in 48 states, destination gaming travelers are becoming fewer and farther between. Time for Nevada and Lake Tahoe to divest itself from gaming, and not spinning it’s wheels and trying to market to a dwindling genre of gaming traveler.

  11. sunriser2 says - Posted: May 28, 2014

    For every high-end project in the area that succeeded I can name three that failed or are currently stalled.

    Also how did the America’s Cup stand up to its projections?

  12. rock4tahoe says - Posted: May 28, 2014

    Huge drop in Casino Revenue?! I don’t understand, they offer PLENTY of FREE PARKING.

  13. rebel with a cause says - Posted: May 28, 2014

    Thanks to the city’s lack of vision, the now non- existent convention center that was to be built at stateline, would have helped bring more business to South Lake Tahoe, especially in the shoulder seasons. Say what you want, but the opportunity to attend a convention at Lake Tahoe would have been very desirable.

  14. Parker says - Posted: May 28, 2014

    Yes Rock,

    Charging for parking would help the casinos?

    Actually, the casinos that are conscious of value, that are aware that South Lake Tahoe tourists do watch their dollars & cents, Montbleu & Lakeside, are on a much stronger trend line, they are performing better, than the Caesars owned casinos. And thus proving the point the point that excessive charges negatively impacts the tourist experience here in town!

    The LTN Admin of the site asked us to move on from all comments on Paid Parking so I did! I guess some are just waiting until the absolute last min. until Yes on P passes and Paid Parking will finally be a done issue?!

  15. A.B. says - Posted: May 28, 2014

    Although the local casinos have been their own worst enemies over the course of the past decade +/-, it’s safe to say that the Native Americans have finally won the war. And when there’s gaming everywhere, the novelty wears off and nobody wants to gamble.

    The world changes folks, and it is long overdue for the Stateline casinos to adapt or die. Their business model of 25 years ago is no longer viable.

  16. rock4tahoe says - Posted: May 28, 2014

    Parker. a. Admin said timeout on 22nd. Ok, done. b. It’s called sarcasm. c. Want to see what happens to a “free” facility that has no maintenance revenue source, look at the Tennis Courts Rufus Allen. At one point a lot of money was used to build those Tennis Courts and now, well look for yourself.

  17. Parker says - Posted: May 28, 2014

    Yep Rock,

    No sarcasm, seriously, here. Agreed that it’s wrong when something is built because someone came across some $$, and there’s no planning for how the maintenance will be funded!

    How that should subsequently be dealt with is where we disagree. I’m done now, totally, with the Parking topic!

    Except that same point sort of pertains to this casino story. Caesars/Harrah’s borrowed over $20B to go private with no idea how it would pay it back. It’s clearly on the road to bankruptcy. Don’t know why it keeps avoiding the inevitable?

    But an immediate consequence is that it has significantly cut back on its marketing efforts. (And its building maintenance.) The result is less gaming business for So. Lake Tahoe!

  18. DougM says - Posted: May 28, 2014

    Since it was April reporting, you guys are doing an April fools joke, right? First, it takes a lot more than $20 just to get here. That’s a tough enough filter. Past that, when your business is down, is it your best idea to prevent more folks from coming here? If South Shore can only accommodate those on a lower budget, then take it, or nothing. And, uh, news flash, we haven’t been the “income village” ever, aren’t it now, and have no reason to expect that in the future.

    As for the casinos, welcome to economic climate change. Fight it and go bankrupt, or adapt and be fine. Since losing the cornered market they once had, it’s been uphill, and a tough place to get to, to feed one’s bad habit. On the other hand, how on earth can a dustbowl like Vegas be such a mecca, and so much more awesome a place as we have wither and die? I don’t know the gambling business. Don’t go near them. But do the folks running these places know what they’re doing? All our cards seem to be with Heavenly and Vail Resorts. Hope they know what they’re doing.

  19. 4-mer-usmc says - Posted: May 29, 2014

    DougM:

    “If South Shore can only accommodate those on a lower budget, then take it, or nothing.”

    Are you kidding? It’s precisely that type of mindset that prevents quality in any form from taking place and has largely stunted the South Shore and kept it in its current unappealing time warp. Have you ever heard of wanting better, figuring out how to get that, and then working your butt off for it?

    There are some people in this town that need to get off this hill once in a while and see what the successful resort and casino areas are doing, try to learn something new, and maybe even attempt to replicate some proven successes. We need change in this community if we want things to improve, because more of the same won’t even get you more of the same, it will get you less. With as much as the South Shore has to offer there is no reason to accept settling for garbage visitors who have no respect for our community and think it OK to trash it.

    Want better, work for better, and demand better from our elected officials and from business operators on both sides of the Stateline. It’s all about quality, not quantity. If you’re willing to settle for less you’ll always have less.

  20. Old Long Skiis says - Posted: May 29, 2014

    4-mer-usmc, Well said,young man! We need to strive for quality and make sure this town is a draw to tourist and newcomers alike who want to settle here, for a good community, an appealing destination for those visiting, and for those of us lucky enough to call this place home.
    I’m optimistic that we’re headed that way. Lottsa work ahead? Oh yeah!!! We’ll get there, so eventually we really will be “The Jewel of the Sierras”.
    Stay positive, OLS

  21. reloman says - Posted: May 29, 2014

    if we want better tourist, we have to improve our infrastructure, ie roads, give low interest loans to business owners to improve their properties(thats the carrot, the stick is a law about poorly mantained buidings on 50, there are laws like this on books elsewhere) look at the Harrison ave project, one one owner ahs stepped up to say he will be upgrading his property(that I know of, and that is not even close to the worst one) Problem with that is that the residents of this town do not want to pay for in the form of any type of tax increase on themselves. They dont even want to pay get their own neighborhood streets repaved and upkept, we dont have to worry about out main street as Caltrans is responsible for that(50 & 89)

  22. C.Dub says - Posted: May 29, 2014

    The writing is on the wall. “Innovate or die” I always say. It’s only a matter of time, but until then, as many have noted herein, SLT will remain in a time warp.

  23. reza says - Posted: May 29, 2014

    Interesting how the Stateline properties are the largest voice with regard to what the city should do but they have no plan to renovate their properties. Thus, their businesses continue to nosedive.

    I agree the city needs to fix the way it looks including the dumpy buildings at Harrison Avenue but the casinos also need to step up. Most likely they do not see a plan for the south shore that is strong enough to warrant investment. Imagine Heavenly or Harrah’s management asking their corporations for money to improve and the board of directors then says, OK, what’s the plan for South Shore? The answer…there is no plan and no one driving the ship either. So, why should the corporate leaders provide capital for their Tahoe businesses?

    Norma, Hal, Tom, Brooke, Joanne and Angela and Douglas County have shown zero leadership. No one is leading the way. How do we climb out of the dumps without someone showing us the way up. I don’t know how this gets substantially better any time soon.

  24. rock4tahoe says - Posted: May 29, 2014

    Reza. Norma, Hal, Tom, Brooke, JoAnne & Angela are doing what the can for California side. That “zero” comment has no legs. I challenge you to compare the improvements to California versus Nevada. The joke is on the Nevada side of Stateline and the slum.

  25. dan wilvers says - Posted: May 29, 2014

    Rock I believe you were referencing the tennis courts on Lyons st just around the corner of the end of Rufus Allen, adjacent to the Babe Ruth complex?

    I think I remember those were a part of the school district but on city property, and when the schools walked away from maintaining them the city chose not to budget their upkeep.

    I could be completely wrong on this, so I’d appreciate someone who knows that story, simply because it is an interesting eyesore with some history.

  26. Irish Wahini says - Posted: May 29, 2014

    WOW…I was just now able to read all the comments and suggestions. There is a lot of passion there! Everyone wants the fix…. but Rock4Tahoe is correct – the casinos are in Nevada! But I think that is why the Chamber split….

    Anyway, my 2 cents… I used to organize large symposia & conferences for a large biotech firm, (& later for Oracle). I also organized their ski trips. There is no way I would have put a symposia/conference at Stateline. I used to book smaller ones at Granlibakken (easy to fly to Reno & arrange 1-hour transportation from the airport to the resort)… easy to book fun things for my groups to do outside of the conference hours (I used to take over a restaurant; rent all water equipment; etc.). I do not think the “Tahoe South” Visitor Authority or Chambers are viable resources to research/resource & help sell these services. They are too caught up in brand instead of performance and shopper expectations.

    Today’s visitors are not looking at gaming as the destination, altho they might engage if there were more important resources (outdoor activities, like biking, hiking w/a group/guide & picnic – Angora Lakes; Echo Lakes, Hope Valley, etc; SUP with a guide; a day and lunch at the beach; etc.). Who expects to be inside a smokey casino all day? Maybe an hour or more if there is a great evening show (ala Las Vegas). SLT is stale. The young, big earners at Tech companies want an energy-driven environment (dinner at the beach with good food & wines; a “no-smoking” environment; a way to get there without renting a car or trying to get a cab.

    I used to apply for jobs in SLT that dealt with these issues, but finally figured out they were not interested in change. I have owned a house in SLT for 23 years, and I try to contribute to the community (& I worry about the frail environment). I would be willing to even offer free time to movers & shakers who might be able to push an agenda for “vision”. That is what seems to be missing here.

    I definitely do not endorse a new convention center until there is proof that is would bring business. Why would anyone try to get a large group to travel from Reno or Sacramento to SLT for a conference? The carrot and interest needs to be identified and validated.

  27. reloman says - Posted: May 29, 2014

    Irish, I have learned of about 10 groups myself that were interested in the last year but we did not have the meeting space to accomaidate them, even taking 2 casinos and The Lake Tahoe Resort, one was a lead of mine of about 1000 attendies with a sit down dinner presentation, all insurance agents. There is a demand just to visit the lake with gaming as a ammenity.

  28. rock4tahoe says - Posted: May 30, 2014

    Dan W. I am not sure of the tennis court history. My original post was to point out the obvious. South Lake Tahoe has the newest facilities. Nevada Casinos have done nothing to improve quality of the facilities (still having world class bands play in a parking lot?) Well, The Sahara/Horizon/Park Tahoe is finally getting some TLC. Building something does not mean it will last forever. The tennis courts were just a single example. BTY, the MontBleu tennis courts don’t look a whole lot better then the “working” tennis courts on Rufus Allen.