A DIFFICULT PROPERTY TO MAINTAIN CUSTOMER LOYALTY

Implications: Ok, so where does this casino draw it's customer base from? The Montelago Casino is not in a very good gaming area. They were having a great deal of problems enticing local play. The competition is very stiff in the surrounding Henderson area. (suburb of Las Vegas) Their marketing has had a lot to be desired - how can a fix be made by the new owners. (Pacific Capital)

Analysis: In a very up scale housing area, the Montelago Casino is fighting to keep their doors from closing. This is an extremely high end area, that could easily do without a casino. The Lakes, even though there are some very good and high quality Hotels just don't support the casino as needed. The Loew's, Ritz Carlton and Hyatt have generally been looking at the destination resort business, Not necessarily the gaming public. Here is the facts about this area. Their retail is trendy and caters to the tourist and allows the locals very little chance to spend their dollars. It's is not the fault of the retailers. The locals look to spend their cash where they can get the same items  at a more reasonable price and without the drive time to get to the Lakes. The casino is having a tough time as the try to cater to the locals -  the same results are seemingly at hand. To far to travel, not the best of restaurants in the casino and just some very fair entertainment. It's not the best of locations for a casino.

The original idea for the Lakes community was to have everything up scale, and that's just what they did. This area is surrounded by beautiful golf courses, high price homes and higher end retial. The possibility for the casino getting the tourist business is not great.  They are located about 24 miles away from the Las Vegas Strip. Does this really matter? Yes, I am afraid that it does - Since, Hyatt and the other above mentioned are basic to the non gaming customers, they rarely market the casino. They are also being challenged by the casinos in the the Henderson area that specialize in the tourist and local customers. Just to mention a few that have this distinction are the Stations Casinos Sunset Station, Fiesta and Green Valley Ranch. There is also the Water Street gaming corridor that houses a group of local properties that have been there, it seems, forever. Most of the top notch properties above have a complete hotel and casino that includes, Spa, casino, many restaurants, good entertainment and easy access with an easy driving locations.

These new owners will have their hands full trying to make this deal a good one. It's not going to be easy creating solid business that will come to the casino on a regular basis. It's easy enough to do business on Friday and Saturday, however, this is a 24/7 proposition and needs customers during the weeks to visit their property.

At the very best, I feel, it will be an uphill battle.....................