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A blog about the economy and the Sacramento-area real estate market.

November 5, 2009

Red Hawk still struggling

The Red Hawk Casino at Shingle Springs continues to produce disappointing results.

The company that manages the casino, Lakes Entertainment Inc., said today that Red Hawk's revenue is still being hampered by the weak economy. The disclosure came as the company announced third quarter earnings.

Red Hawk's employment has been trimmed from 1,750 to fewer than 1,500 full-time equivalents since the casino opened last December.

"The uncertain economic environment in the California market continues to impact the Red Hawk Casino's ability to achieve strong opeating results," Lakes Chief Executive Lyle Berman said in a press release.

"We remain diligent in streamlining processes and making constructive changes at this property and we are cautiously optimistic that these enhancements as well as potential improvements in the general economic environment will positively influence the long-term operating results of this property."

Lakes said it earned $2.3 million, or 9 cents a share, during the quarter. That compared with a loss of $5.7 million, or 23 cents. Revenue fell to $6.6 million from $8.4 million.

The company's shares were up 67 cents, to $3.51, in morning trading on the Nasdaq market.

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