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Why Colorado gaming revenues are down

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L.W. Hunley

Published May 4, 2008 at 6 a.m.

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It seems every time there is an article about the downturn in casino revenues in Colorado the emphasis of blame seems to be on the affect of the smoking ban. The latest article “Casinos say revenue going up in smoke” by Joanne Kelley is just the latest example. To the contrary I for one am more likely to go to Colorado casinos because of the smoking ban. However there are other factors in my opinion that are much more likely. During my latest visits to Mesquite and Las Vegas, for example, the papers there say that they too are suffering from a reduction in revenue and of course smoking or non-smoking is not the issue there. The emphasis of blame by those area casinos is the economy and gas prices, which seems more likely to be the case.

There are some factors that are unique to Colorado. The effect of I-70 problems, the harsh winter, and the gas prices combined are having a great impact, especially on all of us here on the western slope. It is common knowledge that this has been one of the worst winters in recent history, not only causing hazardous and dangerous driving conditions, but also numerous road closures due to rockslides, avalanche control, and multi-car accidents. Add to this that for those of us here in Grand Junction, we have not only over a 3 hour drive each way but also the cost of gas alone which can amount to $70 or more.

Of course if the front-range politicians get their way we will have to pay $10 in toll fees also. In addition, the cost of rooms in Blackhawk is not exactly cheap and in fact with little effort it is easy to find rooms far cheaper in Mesquite and Las Vegas. And I cannot help but wonder why the casinos have not looked at the loss of revenue from specific places such as the western slope towns and try to increase their revenue from those sources. Seems to me a smart marketing director could figure out a way to rectify some of that.

In addition there is one area that I have never seen mentioned in the articles - that is the effect of Allegiant Airlines. An individual can fly direct to Las Vegas from Colorado Springs, Fort Collins-Loveland, or Grand Junction for as little as $49 plus extras each way. No long or dangerous drive, more options for casinos, less cost per room, greater selection of restaurants are just a few of the advantages. This certainly has had a major effect this winter on the Colorado casinos albeit one they would rather not illuminate.

I understand the casinos of Colorado don’t like the smoking ban but of course casino owners don’t have to sit down at slot machines with coin trays filled with ashes and cigarette butts or sit for an extended time with someone blowing smoke in their face. But they should recognize there are other areas that they should be concerned with.

I enjoy the Colorado casinos and certainly don’t want to see them in distress. However they should not simply place the majority of the blame on the smoking ban. Let’s get their marketing directors a little more involved rather than just accepting excuses.

L.W. Hunley is a resident of Grand Junction.

Comments

  • May 4, 2008

    9:17 a.m.

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    kathyM writes:

    L.W., Nicely put. But for those who blame everything on the smoking ban, here is a translation: It's the recession, stupid!

  • May 4, 2008

    4:24 p.m.

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    Brain writes:

    There is no recession yet; the last quarter of 2007 the economy still grew .6% and the first quarter is projected to grow the same.

    Jimminy is correct we had a bad winter last year too and gas prices were not as high as now but not far behind; as far as flying to Vegas you could do that out of Ft Collins/Loveland over 2 years ago, of course now (if you smoke) you have another reason to go to Vegas. I hear the The Wild Card Casino is really thriving. Before the ban many casinos had non-smoking areas so you could avoid being by smokers; I have worked at casinos in the past and don't smoke (hate it) and rarely noticed any cig smoke, why exaggerate. Hard for me to imagine the casinos getting much business in the winter time from Grand Junction, I sure the marketing department of the casinos have done things to mitigate the fuel expense like more buses, reimbursement of bus fees and of course they can change the weather; those stupids.

  • May 4, 2008

    7:01 p.m.

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    beachbuffy writes:

    Let me get this straight. So, LW person LOVES the smoke-free casinos....and then goes off the Vegas and Mesquite to gamble (gasp) where they allow smoking in the casinos??? What kind of moron subjects themselves to something they hate when they could stay home and get something they like?

    Also, JW failed to note that smoking is banned nearly everywhere *except* casinos in Vegas. So, there is an enormous loss of revenue from all the stores, marts, stations, and restaurants that *allowed gambling & smoking* but now only can allow gambling.

    A little advice to JW. STAY HOME in your smoke free paradise for goodness sake!

  • May 5, 2008

    6:05 a.m.

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    Mike846 writes:

    The smoking ban is another prime example of people passing "feel good" laws without thinking through the consequences of the law. Next they'll tax fast food, or ban fry cooking all together, sending another type business into the tanks, throwing people out of work and then they will sit around and wonder why restaurants are closing all over the state. Of course, they will find "other reasons" for the decline in revenues, and the corresponding decline in sales tax revenue. But it will help put more people on the dole, beholding to the "nanny state" for support, etc, etc. Typical liberal nazi-ism. "We know what's best for YOU!". Sheesh. Mike

  • May 6, 2008

    3:18 p.m.

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    me2 writes:

    If the casinos in Colorado are failing because the smokers stay away to show their disgust, shame on them.

    Where do the smokers go to gamble now?

    Not everyone wants to fly and be stuck without a car in Vegas. But with the cost of gas it looks like even the Nevada casinos are hurting. Also they have gone to penny machines with tiny little pay off. The people I know stay for shorter periods of time and play the slots less. The casinos are using short term strategy that is hurting them in the long run. Low payoffs will make them money now, and put some of them out of business in the future.