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Recession lifts odds facing small casinos

Indian gaming also adds to long-term trend

SPARKS -- For 10 years, Nonie Galloway helped pay the bills as a hostess-cashier at the Silver Club in Sparks.

Now, the 34-year-old single mother of five is wondering what she'll do next after the resort on Saturday became the latest small casino to close in Nevada, a long-term trend that experts say is being exacerbated by the recession.


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  • "It's been rough, really rough," said Galloway, whose kids range in age from 2 to 14.

    "It's upsetting my kids, too, because they're worried about me and what I'm going to do next. I don't know what I'm going to do now," she added.

    Galloway is among thousands of employees who have lost jobs statewide as the recession and spread of Indian gambling have combined to take a toll on small casinos.

    The faltering economy is the driving force in the Holder Hospitality Group's decision to close its Silver Club in Sparks and its Red Garter Casino in West Wendover on March 3, company spokesman Tom Clark said.

    The moves affect 219 employees at the Silver Club and 155 at the Red Garter.

    Holder has been trying to sell its 13 Nevada casinos for 18 months, Clark said, but prospective buyers have faced difficulty securing credit.

    "We're seeing the perfect storm," Clark said. "The traveling public and locals don't have the disposable dollars like they have in the past. The smaller properties are having more trouble weathering the storm than the larger properties."

    Elsewhere, the December closure of the Oasis' casino, restaurants and nightclubs in Mesquite affected 500 workers, while the November closure of Fitzgeralds Casino-Hotel in Reno affected 475 employees.

    Tom Cargill, a University of Nevada, Reno economics professor, said smaller Nevada casinos have struggled since the advent of Indian casinos in California and the recession may have accelerated a long-term trend of such resorts going out of business.

    "There's a long-term trend here where these places don't reopen so what you could see here is a further deterioration of the gaming base," he told the Reno Gazette-Journal.

    "The days when you could just build a cement building and put mirrors and slot machines inside and make money, well, those days are long over," he added.

    The recession continues to hurt Nevada casinos both big and small, according to a report Friday from the state Gaming Control Board.

    The casinos reported an almost 15 percent drop in winnings from gamblers in November, the 11th straight month of declines, compared with the same month a year earlier.

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    Free Nevada wrote on January 11, 2009 10:46 PM: Folks like Ms. Galloway could perhaps move to the small affordable Sparks-like towns near Morongo or Barona or Pechanga or San Manuel. It is a myth that the workers at those recently expanded California resorts are actual native Americans.


    who it is wrote on January 11, 2009 09:24 PM: All i have to say is greed is the problem to the worlds problem greed greed greed


    casinocon wrote on January 11, 2009 09:13 PM: If you loosen the slots, bring back $2 single deck blackjack, comp meals and make sure everyone gets a free drink every half hour your casino big or small will flourish, even in this recession. In the good ole days plenty of casinos did just fine by catering to their customer and understanding the market. I don't feel sorry for any casino that goes under. The mother (why the heck did she have so many kids? Now would be a good time to send the older ones out to work in fast food restaurants) can file for unemployment benefits, sell all the stuff she bought when times were better, and look for another job. Yep, jobs are hard to come by, but hey, it couldn't have been easy giving birth five times either.


    Sad Summerlin wrote on January 11, 2009 04:00 PM: Hey State Employees...

    Here's an article that talks about almost 2000 Nevadan's who have lost their jobs to this economic downturn. They don't have to worry about a 6% cut in their income, because now they have no income...

    So let's raise taxes, increase fees on goods and see how these 2000 folks out of a job can help keep State workers employed at their current wages..

    I bet if these 2000 workers had a choice, they would rather take a 6% cut then lose their jobs completely...

    This is reality.


    Tom, Burbank wrote on January 11, 2009 12:51 PM: Callie's knee-jerk assumptuasation (assumption + accusation) is part of the problem. Vicious finger pointing at each other helps nothing. Those fingers need to be pointed at elected officials and they must all be voted out of office. They've been in office and helped create this situation and now they're telling us they're have the answers? We're only stupid if we re-elect them. As for Obama's plan, what is it? A calculatedly written and appropriately sternly delivered speech is not a plan. It was long on tone and dire predictions, short on specifics. I wish him luck, as anything he does will affect all of us for years to come, but I don't know how he plans to deal with the reality of government. For example, here in Los Angeles, there're streets that need repaving and the horizon for that work stretches out 70 years. As ludicrous as that sounds, it's true. Now, let's say Obama's money wand grants L.A. cash to repave those streets now, meaning immediate employment, materials to be paid for, etc. Sounds good so far. Except that this is Los Angeles, where the mayor and city clowncil have raised garbage fees twice in the last 4 years to "pay for more police officers." And within 2 weeks of passing the first increase, they told residents that, well, surprise - some of the fees would be diverted to other programs. There's such entrenched corruption amongst the lying long term politicians and entrenched union civic infrastructure that it's anyone's guess where Obama dollars would actually end up. This is only one city, and these are the party people that helped elect him. How will Obama handle that? Good luck, and I sincerely mean that. In the meantime, kick out ALL incumbents when the chance arises.


    Oscar wrote on January 11, 2009 12:35 PM: Dont' worry folks. Obama is going to send you a check for $2,000 to stimulate the economy - that is, if you are a single, black mother with 4 kids, all from different daddys, who all have ran far away from the resident ho. But, how is $2000 spent on crack going to trickle down?


    Connie wrote on January 11, 2009 12:33 PM: It's funny how when times get tough, your winnings seem to diminish. How do you explain that? If these machines were indeed true and tamper proof, why is it they seem to tighten up when a 'recession' hits? You can't tell me these casinos don't make changes on these machines and their boards, no way, no how. Cheating 101.


    Virga wrote on January 11, 2009 08:50 AM: It is not gambling when there is no winners.

    What happened to the long legs in fish nets and free drinks?

    "Well sir it looks like a jackpot but we have discovered an internal error which voids the play".


    jake wrote on January 11, 2009 08:30 AM: hey fred your buildings haven't had any airplanes flew into them lately. thank you george w for the job you done. thank you demoncrats for destroying our economy.


    Steve wrote on January 11, 2009 07:57 AM: Callie,



    You are almost correct. IMHO, "stupid people" are the ones who aren't intelligent enough to know the Dems have been in charge of Congress for the last 2 years. That's why they acquired a larger majority in this last election; because voters in general are so ignorant they don't even know who's in charge. I do agree that both parties are responsible for what is going on. However, it's not correct to lie about the Republicans being in charge for the last 8 years either. Additionally, it wasn't Republicans who were in charge the previous 6 years..it was a bunch of RINOs like Guinn who used to be in charge in Nevada.


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