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Recession is in play at California's tribal casinos

Visitors are still streaming in, but they've cut back on spending, operators say. Analysts say the casinos aren't likely to see a pickup in revenue until the middle of 2010.

GAMBLING

November 20, 2009|By Hugo Martín
  • Wally Skalij / Los Angeles Times

This is what a recession looks like at Southern California's tribal casinos: Nearly every seat at the 25-cent slot machines is filled. Gamblers wait three deep around the cheapest blackjack tables. The reels on the penny slot machines spin almost without interruption.

The Saturday night crowd at the San Manuel Indian Bingo and Casino in San Bernardino County reflects what gaming operators say is the new reality of tribal casinos: The visitors are still streaming in, but they have cut way back on spending.

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"We have the same amount of people and they come in as frequently, but they are just spending less," said Mike Hiles, a tribal information officer for the Soboba Band of Luiseño Indians, which operates a casino with 2,000 slot machines, 20 gaming tables and two restaurants in San Jacinto.

Analysts say tribal casinos have been hurting for more than a year and are not likely to see a pickup in revenue until the middle of 2010. California's tribes are so cautious about the future that most have yet to add thousands of new slot machines approved under a controversial agreement negotiated with the state in 2005.

"Everything around us is so depressed, so the tribal gaming is depressed," said Deron Marquez, former tribal chairman of the San Manuel Band of Mission Indians.

Tribal representatives say the casinos are surviving the recession, in part, by attracting gamblers who are forgoing trips to Las Vegas and Reno to save money. As a result, the Indian casinos have avoided the huge drop-off in tourist traffic in those cities, which have seen gambling revenue declines of as much as 20% in the last year.

At the California casinos, the most visible sign of tough economic times is the size of the crowds gathered at the lower-limit slot machines and card tables. Crowds are considerably smaller at the higher-limit slot machines and card tables.

At San Manuel on a recent Saturday, gamblers were gathered around the $15-minimum blackjack tables, waiting for seats to become available. Empty seats were also hard to find at the 5- and 25-cent slot machines.

Cigarette smoke and noise filled the air as waitresses, balancing trays of drinks, maneuvered through the boisterous crowds.

On a recent weekday at the Morongo Casino Resort and Spa in Cabazon, crowds were sparse. Still, the gamblers clearly favored the $15-minimum blackjack tables and the 5- and 25-cent slot machines.

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