MEDLEY COMMUNICATIONS INSTALLATION PROFESSIONAL General Drexel Height Fire District Firefighter Part Time Employment AVIVA Children's Services Monitor: Parent-Child Visits BusinessCasinos' cash flows still slowIndian gaming contributions to state dip 9.5% in 3 months compared to '07
Arizona Daily Star
Tucson, Arizona | Published: 11.01.2008
The cash flow into Arizona's casinos continues to slow as economic woes and high gas prices reduce the amount people are willing to spend on gambling.
Contributions to the state from Indian gaming operations dropped 9.5 percent in the past three months when compared with a year ago, the Arizona Gaming Department announced Friday.
It's the third straight quarter the Gaming Department has reported a decrease in year-over-year contributions and the largest decline since 2003, when the Arizona Tribal-State Gaming Compact went into effect, said Seena Simon, a Gaming Department spokeswoman.
The decline in contributions reflect a decrease in revenue in the state's gaming operations, though the department doesn't release tribal gaming revenues on a quarterly basis.
People are being more cautious with their money during these trying economic times, especially with the volatile stock market, said Sheila Morago, executive director of the Arizona Indian Gaming Association.
"As people see their 401(k) shrinking right before their very eyes, they're going to hold onto their money a little tighter," Morago said.
Arizona's tribes contributed $25 million for the quarter that ended Sept. 30, which is down from $27.6 million in the same quarter the previous year, the Gaming Department said.
"We're still making money, it's just not as much as it was last year," Morago said.
Under the state gaming compact, tribal casinos give 1 percent to 8 percent of their revenue from certain gambling activities to the state, with the contribution calculated on a sliding scale. The funds are used for education, trauma care, wildlife conservation, tourism promotion and other services.
In the Tucson area, Desert Diamond Casino and Hotel at 7350 S. Nogales Highway, which opened last year, has been performing well, said Scott Sirois, CEO of the Tohono O'odham Gaming Enterprise.
The Tohono O'odham also operate casinos near Sahuarita and along Arizona Highway 86 near Why. Their revenue hasn't suffered as much as other casinos in the state, Sirois said.
The Tohono O'odham Gaming Enterprise did take on debt to build the new casino, Sirois said, but "revenue has been strong."
Even in these tough economic times, Sirois said there are no plans to lay off employees or institute a hiring freeze. But the gaming enterprise has been more thoughtful with spending decisions, he said.
"Our current economic conditions are indicative of how sensitive entertainment that relies on discretionary spending is," he said.
Also in the Tucson area, the Pascua Yaqui Tribe operates Casino Del Sol, at 5655 W. Valencia Road, and Casino of the Sun at 7406 S. Camino de Oeste.
Wendell Long, the CEO of Sol Casinos, wouldn't speak specifically about revenue at the Pascua Yaqui casinos but he said revenue industry-wide is down because people are spending less when they come in.
"In the industry as a whole, and in Arizona specifically, the same number of people are coming in for the same number of visits, but they're bringing less money," Long said.
Sol Casinos also has no plans to reduce its work force, he said. But they have "loosened" some of machines, Long said. That way, when gamblers come in. they can gamble longer with less money.
● Contact reporter Dale Quinn at 573-4197 or dquinn@azstarnet.com.
|
|