The opening of the biggest Indian casino in California, Graton Resort and Casino in Rohnert Park, four months ago in the northern part of the state was always expected to have an effect on neighboring casinos.
The extent of that effect, however, was not foreseen, except may be the management of the nearby River Rock Casino.
The $800 million Graton casino has $3,000 slots and 200 table games, compared to 1,200 slots and 20 tables for River rock.
According to the Santa Rosa Press Democrat last week River Rock, in Geyserville, owned by the Dry Creek Rancheria Band of Pomo Indians, has experienced a loss of business of as much as 45 percent since the new casino opened, according to one unofficial source. The casino has lost 100 employees out of 600, some of them to the new casino and the tribal office has lost 60 workers, down to about six. Tribal members who have gotten monthly payments from casino profits have seen those payments cut in half, from $600 to $300.
Because Indian casinos do not publicize their profits, how much the casino is actually losing is unknown. The last time River Rock did report its revenue was 2010, when that figure was $124 million.
The reasons for the losses are not just that Graton, which is managed by Station Casinos, is larger and has more amenities. It is also located on a road with much better access than the smaller casino and much closer to other towns.
According to Doug Elmets, spokesman for several area gaming tribes. “It was somewhat predictable that Graton would have a significant effect on the local market, particularly because they dedicated an enormous amount of resources to their casino, and the other casinos in the general vicinity don’t have the same resources or appealing location.” He referred to Graton’s style of regional marketing as “shock and awe.”
