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May 21, 2007

What problems face Station Casinos Should Soboba Tribe get a license to operate in Las Vegas

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Ron Lodge
FormerSenior Marketing Executive (former), Venetian Casino Resort Inc
Implications: Can the entry into Las Vegas by the Soboba Tribe trigger any anxiety for Stations? Can there really be a major impact to local gaming that would, in effect, cut Stations profitability? The main thought is if their consideration for a license could open the flood gates for other Tribal Nations to follow suit. NO, NO, NO and again NO!

Analysis: What would Stations objection be to Soboba Tribe taking over the Roadhouse Casino. There is no competition. The Roadhouse in it's best day could not draw any steady customers. Their clientele, in general, would not even attempt to go to Stations. They are a very different breed. So, why the attempt to keep them out? It would be my thought that it's not the Roadhouse that they are not sure of - it's where will the Soboba Indians go from there. Remember that Nevada is an open state for gaming license. Anyone can apply as long as they have the funds and pass the rigid screening of the Gaming Commission. There can be no official challenge to their intent on buying a closed casino, the license will be issued on merit alone. The tribe will have to give up their special place in this country and act like any other entrepreneur. Paying taxes and not asking for any other amenities they are used on their tribal lands in California. They will also face a strong union situation in Las Vegas - something that most tribes don't have to deal with.

Where is the major impact on Stations? My guess, it is a simple ploy to keep out any competition large or small. This property in question offers no real harm to anyone in the gaming business. The facts may be, where are they planning to go from there. That may be the fly in Stations ointment.

I am not in favor of any tribal community being able to move into other gaming territory other than their ancestral lands. I have mentioned this in previous articles. Since they are a solid monopoly in many states why allow them to expand if no group can enter their sacred territory. Please understand that it's strictly my opinion and is not held up by and gaming law. That means that the Soboba Tribe has the right to apply and open a casino if they are licensed. That's the end of that story......


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