LAS VEGAS HAS THAT SPECIAL APPEAL - IT JUST CAN'T BE DUPLICATED

Implications: The tribal properties just can't compete with the Las Vegas market. The thought in the minds of Las vegas business people when the Indian gaming originally came to pass was FEAR - the thought of losing potential players from California was hard to conceive. No one has the foresight to see that it would not keep the serious players from coming to LV on a regular basis.

Analysis: Trying to compete with the Las Vegas market should have not been the real purpose of the Tribal casinos. Many of these properties have a loyal clientele that play, dine and are entertained on a regular basis. They have very competitive rewards systems that entice player back to their properties.

Here are the facts regarding the prospects for a Vegas type of experience at Tribal hotels. The fact that they have a very small percentage of tourist trade is not hard to figure. These properties are not destination resorts. I can't see tourist from abroad or for that matter from the U.S. traveling across country to visit one particular property in California. What is the incentive? Yes, these properties are first class and have all the amenities that you could consider applicable for players and visitors. That's where it ends. If that same person travels to Las Vegas there are endless varieties of entertainment, fine dining, casual dining and the choice of the top casino properties in the world. Unless a traveler has a specific reason for going to a California casino they will certainly opt for LV. Keep in mind the proximity of LV to California - just 285 miles apart.

What these Tribal casinos has done was to siphon off the casual player that plays during the week and then travels to Las vegas on the weekend. They have also have effectively marketed the Asian trade that would have normally come to LV on a turn around one day trip - they now have these needs met by their local casinos. On the prospect of competing with Las Vegas - I would suggest a bit far fetched at this writing. Please understand that these Indian properties have their own niche and they certainly make the best of the area they have claimed. California casinos are doing very well, especially in the southern part of the state. Make no mistake, they have taken some business away from LV, however if you look at the numbers, LV keeps getting stronger and stronger. Must be something to it.....................