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August 21, 2008 - No matter where you're from, you've probably heard the U.S. dollar has not been doing too good of late. In fact, Uncle Sam's economy is facing one of the largest downturns in a good long while. And might I say (this being the gambling blog and all) that amidst this weakened state, the Las Vegas land-based casino gambling industry is apparently facing some pressing times of their own.

Go figure, right? Or perhaps I should rephrase that and say the resort casinos on the Vegas Strip are facing hard times. Apparently, the small casinos that dot the Las Vegas Valley have not been hit with the loss of business that the heavy-hitting resort casinos on the good 'ol Strip have been trying to deal with, while all along, condos continue to still go up.

I recently read an editorial in the Las Vegas Sun that highlighted a couple of these smaller "locals" casinos - The Rainbow Club & Casino and Silver Nugget Casino in North Las Vegas. Both properties, unlike their larger counterparts, have actually seen an increase in business from the same time last year. Even the larger "locals" casinos off-Strip have been hit with a drop in business.

But places like the Rainbow Club don't have the extra amenities like the locals casinos owned by Station Casinos and Boyd Gaming. One of the most obvious of these are the hotel rooms - the revenue of which is being hit the hardest as a result of fewer travelers. While restaurant amenities are common to most casino properties, the key to Rainbow Club and Silver Nugget's success has been keeping prices down low. The Rainbow Club is serving prime rib and porterhouse steak for less than $8 and is seating about 8,000 people per week. You won't find that at the Red Rock Resort.

Another factor that has proven beneficial to the smaller casinos is the sense of friendliness and intimacy they can provide. The bulk of business at these properties indeed comes from locals (most of which are retiree's on fixed incomes), who don't mind losing their bankrolls to the slot machines so long as they can have a good time talking with casino employees and keeping their bellies full. Chock one up for the small guys. Honestly, I don't feel sorry for the big casinos.

Originally published: August, 2008 | Categories: Gambling