It's one of Lake Tahoe's smallest and least-known casinos. But the down- sizing this week by Bill's Casino – during high season, no less – offers big-time evidence of the problems facing Tahoe's gambling industry.
Bill's eliminated blackjack and all other table games this week, deciding to rely on slot machines for all its gaming revenue. The Harrah's Entertainment Inc. property laid off 28 employees.
With Tahoe casinos struggling with $4-plus gas, a soft economy and the Northern California Indian casinos, the move makes sense, said Reno consultant Ken Adams. Slots are far more profitable than table games, he said.
Still, he was surprised by the timing. "This is really indicative of how bad things have become if they're doing it in … the height of the Lake Tahoe season," Adams said.
Gary Thompson, a spokesman for Harrah's, blamed the economy. "Things are pretty slow up in the Lake Tahoe area. … People are still visiting, but they're not spending as much as they used to," he said.
Bill's, named for company founder Bill Harrah, operates just 18,000 square feet of gambling space, a fraction of its sister properties Harrah's Tahoe and Harveys.
It lacks a hotel. Many of its customers are day trippers, making it highly vulnerable to competition from Indian casinos, said Jerry Bindel, president of the South Lake Tahoe Lodging Association.
The entire gambling industry is hurting, but Tahoe may be hurting the worst. Gambling revenue on the south shore fell 24 percent in May, according to the Nevada Gaming Control Board. Statewide revenue fell 15 percent.
Two Tahoe casinos, the Horizon and MontBleu, are operating under Chapter 11 bankruptcy protection because of problems with a sister property in Atlantic City.
The pressure will intensify when the Shingle Springs Band of Miwok Indians opens its Red Hawk Casino on Highway 50 this fall.
– Dale Kasler
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