One attraction of small casinos is that they have ability to be something like the bar on Cheers: People wanna go where everybody knows their name.
“It’s not because it’s good marketing; it’s because that’s how you should do business,” said Skyelar Perkins, corporate senior director of slot operations for the Choctaw Nation of Oklahoma, Commerce Division.
Perkins was speaking at a panel discussion on “Small Casinos: Competing with The Big Boys … Or Not,” Tuesday at the Global Gaming Expo at the Las Vegas Sands Expo and Convention Center.
The panel also included Holly Gagnon, president and CEO of Seneca Gaming Corp., and Dennis Hendricks, treasurer of California Nations Indian Gaming Association. Conrad Granito, general manager of Muckleshoot Casino in Auburn, Wash., moderated.
Granito opened by acknowledging that he and the panelists were all now with large casinos but said that they all had experience with small operations.
“The vast majority of tribal casinos are not big casinos,” he said. “They’re smaller, they’re independent, they’re in very rural markets.”
That leads to unique challenges for these smaller casinos, such as seeing business slip temporarily because of the opening of a nearby Wal-Mart, or even a McDonalds. Rural casinos sometimes are the largest employer in an area with a limited labor pool. In good times, operators might be reluctant to seek outside advice on the best ways to encourage growth.
“Learning from other peoples’ experience is valuable,” Gagnon said. “Networking at events such as G2E can provide contacts willing to offer advice. If a casino decides to hire a consultant, operators should vet the bidders.”
Granito added that operators should require that a consultant leave a list of specific recommended actions to take.
Gagnon cautioned operators not to get carried away with what they might encounter at Las Vegas casinos during G2E.
“You’ll see a lot of cool exciting things (here), but remember one size just doesn’t fit all,” she said. “The temptation is to say let’s try this (back home) without fully knowing your market. You really do have to do market studies to see the effect. Spend your money wisely. Just because it looks cool doesn’t mean you should do it.”
Perkins reminded operators to realize where their casinos are.
“Understand what it is, and its place in that market,” he said. “Who are you, what’s happening, what’s realistic?”
But he also said operators of small casinos should not get complacent.
“If you’re not adaptive, if you’re not trying anything new, you’re going to die. It doesn’t matter what type of business you’re in,” he said. “It’s a good thing when someone tests you.
“Competition is good. It keeps us on our toes.”
Perkins also recommended that tribes focus less on short-term results and more on “a couple of generations down the road.”
California Nations’ Hendricks said a positive part of being a small operation is in creating jobs and becoming part of the community fabric. Casino employees pay sales and property taxes and support local charities, he said.
“Being there and being supportive and working with all organizations gives us a good perspective and good status in the community. Employees that we have go away from their jobs and become ambassadors to the community”
During a question-and-answer segment following the discussion, National Indian Gaming Association Chairman Ernie Stevens Jr., lauded the contributions of small casinos.
“What you guys have done for this industry is amazing,” he said. “What we bring to the industry, what we bring to Indian Country, what we bring to the community, is so amazing. None of us would be where we are without you folks.”
