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Dec. 03, 2008
Copyright © Las Vegas Review-Journal

Black closes Oasis' casino

Cost-cutting move will trim company work force by 500

By ARNOLD M. KNIGHTLY
LAS VEGAS REVIEW-JOURNAL

Mesquite operator Black Gaming will temporarily close the Oasis' casino, restaurants and night clubs on Friday in a cost-cutting move for the financially struggling company.

The closing will cut the company's work force by 500, according to a Monday filing with the Securities and Exchange Commission.

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    • The Oasis' 900-room hotel, RV park, neighboring golf course, gun club and time-share facilities will remain open.

    Majority owner and Chief Executive Officer Randy Black Sr. said Tuesday the company wants to drive customers to its other two properties: the 480-room CasaBlanca and the 710-room Virgin River.

    "We're all hopeful the economy comes back," Black said. "Because, if it doesn't, things are just going to get worse."

    While the filing's language described the move as temporary, an accompanying statement signed by Black warned "the length and depth of the challenging gaming market" means "no assurances can be made about" when the Oasis' facilities would be reopened.

    Black Gaming's third-quarter revenues dropped 23.6 percent with the property showing a negative cash flow of $900,000.

    Visitor volume to the town 80 miles northeast of Las Vegas is down 6.6 percent through September, with occupancy rates down 5.5 percent, according to the Las Vegas Convention and Visitors Authority.

    Daily room rates for the city dropped 35.8 percent through September, and gaming revenues are down 9.9 percent, according to the visitors authority.

    Mesquite Mayor Susan Holecheck said the loss of 500 jobs in a city of 20,000 surrounded by smaller communities is devastating anytime of year but especially at Christmastime.

    "Laying off 500 people has a huge domino effect," Holecheck said. "At Christmastime, if people are out of a job and not making money, then they are not able to go to the stores and restaurants. If people don't have the money, they in turn aren't helping our businesses."

    The Oasis will give the laid-off workers a packet with information on applying for social services such as unemployment and food stamps, Marty Rapson, Black Gaming's marketing vice president, said Tuesday.

    The workers will also be put on a list to be rehired when the property reopens, Rapson said.

    Before the layoffs, CasaBlanca, Oasis and Virgin River ranked as the top three employers in Mesquite with a combined 2,278 workers, according to a city economic development report released in April.

    The company will have approximately 1,500 workers following the layoffs, according to Monday's federal filing.

    The Oasis will keep a few slot machines open at the front counter to maintain the property's nonrestricted gaming license.

    The property began shutting down the casino's table games on Monday and will continue to phase out casino and restaurant operations this week.

    The restaurants will close Friday after dinner, Rapson said, but no time has been set.

    The company's ability to close portions of the Oasis was part of a Nov. 3 update to a bank agreement after it defaulted on a loan.

    The current bank agreement expires Jan. 15, which means it would have to be updated if the Oasis' facilities remain closed past that date.

    Black said the company is negotiating with the banks, but no decision as been made on what will be done in January.

    Black Gaming is operating under $188.7 million in debt with interest rates near double digits.

    Black is also getting hurt by his sole competition -- the 215-room Eureka hotel-casino which recently completed a $30 million expansion and renovation.

    Black said this year that "the other guy" controls 30 percent of the market.

    Majority-owned by Las Vegas real estate developers the Lee Family, the Eureka added 300 new slot machines, expanded its buffet, and added a new poker room and new sports book.

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

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    Big Dave wrote on December 03, 2008 03:59 PM: Great timing Black - I hope you choke on your red ink!


    David wrote on December 03, 2008 03:41 PM: Christmas is a Christian holiday. I don't complain about Hannakah or Ramadan, so why is everyone making a bid deal about calling it Christmas? It's a Christian holiday and we have every right to address it as such. Those that are not Christians can chose to celebrate it, but please, do not try to change the meaning of it.


    Mesquite Visitor wrote on December 03, 2008 01:02 PM: A short time back I would get an offer in the mail to come to Mesquite - 4 free nights, free massage, food comps,free play, etc., and I would make the drive from Las Vegas to Mesquite for a nice getaway weekend. I would also get invited to play in slot tournaments about 4 times a year. Then I stopped receiving offers to play in the tournaments (now only Platinum card holders can play) and my offers went down to 2 free nights and about 1/5 of the free play I originally received. There is absolutely no incentive for me to make that drive to lose my money. Black has no "full pay" machines at any of his establishments. I miss going out there (especially the massages), but there are plenty of places here in Las Vegas to gamble my allotted monthly amount. A message to Randy Black - put some higher pay tables on your video poker...33 - 35 coins for a Full House is unacceptable.


    HEIDI wrote on December 03, 2008 12:34 PM: MERRY CHRISTMAS FROM RANDY BLACK.... THANKS FOR RUINING MY FAMILY'S CHRISTMAS...


    Ken wrote on December 03, 2008 12:34 PM: JC -- why is it PC to use Happy Holidays? Why should those who feel no connection to Christmas be compelled to state it in order to get your business? Most of the world doesn't believe your beloved savior did anything more that cause trouble under the guise of 'Community Organizer.' Think what you want but don't label the rest of us as being PC because we don't buy into the myth.

    As for Black -- his infomercials stunk. Bad infomercial usually means ultimate bankruptcy.


    tw wrote on December 03, 2008 09:22 AM: If he would loosen up the machines a bit and let the gamblers see someone winning sometimes...he might not have to close it.

    The first step to turning around the casino is to let SOME customers win...don't worry Randy the others will pay for it.


    angel hill wrote on December 03, 2008 08:32 AM: its a shame that these casino owners and rich people dont suck it up when the chips are down dont they realize that by laying people off they are making the economy that much worse i guess there is no more patriotism in this country


    Dennis wrote on December 03, 2008 08:21 AM: Congratulations Mr. Black - you did nothing to entice customers to your properties and in fact drove them to the Eureka - where they had the sence to expand their operation in order to make the gambling experience a pleasent one. You have no-one to blame but yourself.


    Joe Bama wrote on December 03, 2008 08:17 AM: How long do you think M is going to last? (if it even opens in the first place)


    Free Nevada wrote on December 03, 2008 08:10 AM: Food Stamps? Can't the ones who are honest get jobs at the new M Resort up on St. Rose Parkway and I-15? 80 miles is not that far when it's freeway all the way (granted there is congestion between spaghetti bowl and the 215 during daylight hours) --relative to SoCal and other metropolitan areas.


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