Tribal Gaming Is Good, But Not Invulnerable

The Kitsap (WA) Sun had a story back on September 28th that reported on the closing of the inaccurately named Lucky Dog Casino, owned by the Skokomish Tribe. It wasn't a large property, but even the modest employee base of 120 people losing their jobs is very sad. The casino management is stating the closure is just for the winter, but with the economy in its current state, there are no guarantees for next spring.

Management is pointing to the economy as the key driver of the closure. The general manager is quoted as saying, "people who used to come in three times a week were coming in three times a month." That's a very telling indicator regarding slowing patronage. With their winter slow season approaching, that was the final straw to move to close.

Not all tribal casinos in the state are doing that poorly. Net revenue for 2008 was $2.11 billion vs. $1.96 billion in 2007, according to state gambling commission records. It is possible the Lucky Dog may have had issues other than just the economy.

The story further reports that certain gaming products, such as lottery, are holding up well in the economy. Other products, like bingo and card rooms, are suffering. This recession is putting to rest the notion that gaming is a recession-proof industry.