Slots of Fun

Gateway Casinos shrugs off recession talk with new offerings and new facilities in the Okanagan

By Darcy Nybo February 05, 2009 Business Examiner:

Being in recession consumers are more selective on where they spend entertainment dollars. Most entertainment businesses have felt the crunch, but one of the exceptions is the casino industry. Jeff Pascoe, VP operations of Gateway Okanagan Division for Gateway Casinos, says the recession has only been felt marginally by the company. “I’d say the smoking ban affected us negatively more so than the recession is now,” he explains. “That certainly had an impact on our business; however, our patrons are now accepting the change. Once we get past that we’ll see ourselves go back to a growth mode.” Growth in the casino industry has been fairly consistent in B.C. since the early 2000s. “We had four or five years of solid growth,” says Pascoe, “2009 will be more of a leveling off period for us. We expect to be back in growth mode by 2010, but it won’t be as dramatic as what we experienced from 2002 to 2007. Our patrons are getting younger and as we add amenities like restaurants and wine bars, there will be more opportunity to attract a wider variety of clientele.”

Suzanne Carter, the director of marketing of Okanagan Division for Gateway Casinos, has been with the company for 12 years now. She started with the company when the Kelowna casino was located between Lawrence and Leon on Pandosy. “Back then the casino consisted of gaming tables and a lot of smoke. The clientele was mostly male, through all age groups. When we brought the slots in, it really skewed towards higher female than male participation and it brought out an older crowd as well.” Lake City Casino moved to the Grand Okanagan in May 1999, taking casinos here to a whole new level. “We got slot machines before any other casinos in B.C. We have the same offerings now as we did then, except now the machines have changed substantially. When we first started we didn’t have progressive machines. With a progressive machine payouts are linked throughout the province giving patrons the opportunity for a bigger win. They are called B.C. Gold and are well marked in the casino. We also brought in more video based slot machines.”

Slots aren’t the only new thing for Lake City Casinos. Last year they brought in Dragon Bonus Mini-baccarat at the request of their patrons. They have three types of poker games: Texas Shoot Out, Texas Holdem Bonus and, of course, Blackjack. Something new for all three valley casinos in 2009 is Texas Holdem. Carter says the attraction to Texas Holdem has gone through the roof, and patrons are generally a younger crowd. “We attribute this to two things,” she says. “First the Internet and playing online, plus the sports network has been televising tournaments. Penticton opened a brand new room in September with five tables dedicated just for Texas Holdem. It’s the only one in the valley right now for so it’s really busy.”

The game will be in the new Vernon Casino this May. Located in the Village Green Hotel for the last 10 years, Vernon’s new facility will move to the new retail park by the Real Canadian Superstore off Highway 97 on Anderson way. The grand opening is scheduled for May this year. “The new casino will be very modern with up to 400 slot machines, which is a substantial increase over the 225 we have in Vernon right now, says Carter. “We will be offering two Texas Holdem Poker tables, an entertainment stage and a 90 seat restaurant with a sports bar.”

Kelowna is also expanding. Sometime in 2010 an additional 60,000 sq. ft. of gaming will be available, doubling the current size. The plans are to have a 100 seat upscale urban restaurant, a wine bar, another 200 slot machines and five Texas Holdem Poker tables. There will also be an entertainment stage which will feature live entertainment on weekends and for special promotions. Currently Lake City Casino at the Grand has 342 slot machines. There are still some ‘reel’ ones left, but most are electronic with video screens. “There’s no need to pull down the handle,” explains Carter. This means the term ‘one armed bandit’ will go the way of VHS and 8-Tracks. That’s not all that has changed on the slots. “They don’t take quarters anymore either. What you do is put your bill into the bill feeder and get credits for it. Play as long as you like and when you want to cash out you get a ticket from your slot machines and take it to a Quick Jack machine. It’s similar to an ATM in that you put your ticket in and it gives you money back, or you can take it to the cash cage and get money for it.”

Last but not least, Lake City Casinos have added the B.C. Gold card for their patrons. “Customers sign up to become a member of our B.C. Gold Player Club. They get cash back when they play,” says Carter. “You insert your B.C. Gold card into your favourite slot machine and keep it in while you play. You get 1 point for every one dollar of play, whether it’s a credit you’ve won or your own cash. 200 points = $1.00 cash back. Once you get to a minimum 1,000 points you can redeem it. Members of B.C. Gold get access to special events, promotions and coupons that we mail out. You have to be a member to take part in most of the onsite promotions and events as well.”

Things have certainly changed over the last few years in the casino industry. The biggest positive impact in the Okanagan was getting a liquor license in 2006 in Kelowna and Penticton. “That’s something we’ve always fought for,” she says. “We are an adult-only establishment and it’s made our customers very happy.” No matter how you look at it, keeping the customer happy is still the key to keeping business booming.