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Downtown casinos: Race was pits

The Vegas Grand Prix attracted tens of thousands of fans and a global television audience to downtown, but it didn't do much to revive the stagnant Fremont Street-based gambling market.

According to the Nevada Gaming Control Board, downtown win was up 8 percent to $56.5 million, which would mark the end of 10 consecutive months of decline. But an analyst looking closer at the numbers credited the increase to a revenue reporting anomaly and estimated that the downtown casino win was actually down 3.3 percent.


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  • The adjusted numbers jibe with anecdotal reports that closing streets around the Fremont Street Experience for the Easter weekend race prevented customers from getting to casinos and losing money.

    Casino operators say that if the race returns in 2008, organizers should make it easier for race fans to walk around downtown.

    "You couldn't get people in or out of downtown," said Larry Woolf of the Navegante Group, a company that operates the Plaza, Gold Spike, Las Vegas Club and Western casinos in the downtown area. "Obviously, they have to fix the access issues."

    The downtown win of 8 percent was considered misleading because money deposited in slot machines in the final days of March probably wasn't counted until early April, said Justin Sebastiano, an analyst for Nollenberger Capital Partners.

    Sebastiano said casinos typically don't deposit money from slot machines over the weekends. That means cash that went into machines from the evening of Friday, March 30, through Sunday, April 1, wasn't counted until Monday, April 2.

    He based his argument on the fact that the hold percentage of downtown slot machines was 7.28 percent in the April reports, a figure well above the typical downtown hold of 6.3 percent.

    The difference was enough to sway the figures dramatically, Sebastiano said.

    "Even small numbers can give you big swings in the percentage," he said.

    There was some good news downtown. Blackjack win increased nearly 22 percent to about $5.2 million.

    "They beat up on the players in blackjack," Sebastiano said before noting that table games aren't as reliable as slot machines for producing revenue. "But table games are much more volatile."

    Downtown operators were reluctant to discuss the performance of individual casinos for the month. But they did say the layout of the race hindered business and would welcome its return only if organizers improve the setup.

    The major complaint was that the Fremont Street Experience was in the middle of the race route, making it difficult for pedestrians to move freely downtown.

    "We cannot afford to do the island concept again and cut off access like that," said Rob Stillwell of Boyd Gaming, a company with three downtown casinos including one, the Fremont, that was inside the race loop. "The freedom of the Fremont Street Experience is what drives traffic there."

    Jim Freudenberg, president and CEO of Vegas Grand Prix, defended the race. He said the event attracted 120,000 people downtown over three days, but he couldn't verify that figure with ticket sales or any other attendance tracking methods.

    "We brought the people down, which is what we promised to do," Freudenberg said. "We don't know what drives people to gamble. That is their expertise, not ours."

    He said he will visit Las Vegas later this month and discuss improvements for the 2008 event with Mayor Oscar Goodman. He acknowledged criticism of the distribution of foot traffic but stopped short of promising changes beyond increasing accessibility for handicapped people.

    "It is a race track on city streets," Freudenberg said, explaining the necessity to block some foot and car traffic. "If the place was empty, I'd say it wasn't accessible. The people were there."

    Freudenberg wouldn't elaborate on other problems that he said would be part of the discussion with Goodman.

    "They are issues we have with other people. I don't think the right thing to do is airing them in public," he said. A spokeswoman for Goodman said the mayor was unavailable for comment Friday.

     

     

     

     

     

     

     

     

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    Andy wrote on June 14, 2007 10:54 PM: Let me just point out I'm a tourist not a resident. Having said that, this article makes very little sense and looks at the situation backwards. The downtown casinos had a captive audience of tourists, many of whom would never have set foot downtown without this event because they would have been on the strip. There were footbridges out of the idea and they were almost useless because as a tourist, leaving the Freemont St area on foot is like walking into a slum, so access to the outside area doesn't really seem like the main problem. If downtown can not profit off a captive audience of tourists with the hotels seemingly at capacity then something else is wrong besides the event that put them there.


    Dave wrote on June 09, 2007 10:52 PM: Downtown doesn't need some lame Grand Prix to have success. All it needs is for the existing hotel/casinos to invest in their infrastructure and to maintain the low limit tables - if they do that, people will come.


    dosboot wrote on June 09, 2007 07:24 PM: Goodman championed the monorail in his July 7, 1999, address to the senate.

    Don't be fooled, the Grand Prix had many costs associated with it that were borne by the taxpayers. Increased police protection, re-routing of traffic which resulted in grid lock and countless dollars lost, businesses were often inaccessible.

    Notice that the Neopolis boondoggle was not addressed. Silence will serve as an admission that Goodman was all over that one and the taxpayers are paying the bill.


    Lee Yarbrough wrote on June 09, 2007 05:21 PM: We spent a whole day at the races and the two different grandstand areas we visited had plenty of people in wheel chairs in them. They had areas set up for them all over the place.

    Better access would be good during the race but that is something that can be worked on. If they open more covered walkways they need to have them manned so that people don't stand on them trying to watch the race.

    Many of the casinos had things set up on the sidewalks but that might have hurt them, it kept the people out side rather then inside of the casinos.

    Easter weekend was not the best of planning. They should pick a weekend when we don't have other things going on so the town can see the benefit of the people they bring here.

    Taxpayers did not pay for the new streets or the help to put on this race. Was all paid for by the promoters.


    The Monorail has nothing to do with the city or Goodman, it is not in the city.


    Tim Volk wrote on June 09, 2007 04:45 PM: "If the place was empty, I'd say it wasn't accessible. The people were there."

    Hmm, did Mr. Freudenberg note how many of those people downtown during the race were rather able-bodied? Access for the disabled was seriously hampered. In fact, if the Americans With Disabilities Act applied to the situation, then the handling of access most probably violated regulations.


    David wrote on June 09, 2007 12:45 PM: Was this event financed by taxpayers? Why is it that taxpayers foot the bill for gaming to make more money? Can I open a business with taxpayer assistance, all the while fighting any taxes I might have to pay?


    Darrell C. wrote on June 09, 2007 10:14 AM: I have been watching Champ Car Racing for years, and I think that the Easter weekend was the wrong weekend to have it. There should have been safe covered walkways created over the course for the businesses. I think that a weekend change and walkways would increase the number of spectators, and keep the foot traffic that downtown businesses need.


    dosboot wrote on June 09, 2007 08:34 AM: Holding a Grand Prix in the central business district during business hours was daft. Along with the money losing and taxpayer subsidized Neopolis and Monorail it confounds the imagination as to why the electorate supports Goodman.


    Robert wrote on June 09, 2007 08:11 AM: Frankly I thought it was the best thing to happen to/in downtown in a great while and was a welcome invigoration of something new and exciting. How about having the downtown casinos more involved/ integrated into the race week and activities and see if that helps bring more foot traffic? If there are logistical improvements which could be made, fantastic. Lets not throw the baby out with the bath water.


    David Layland wrote on June 09, 2007 08:00 AM: Ooops!!!


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