By John Yantis The Republic | azcentral.com Sat Jun 29, 2013 6:02 PM
Slot machines and table games are still important. But as the industry bounces back from the recession, executives are wagering that those extras — such as more upscale hotel suites and nationally known concert acts — will entice younger customers and non-gamblers while giving regulars a reason to linger.
Vee Quiva is no exception.
The relatively small and dark, blue-collar casino was built in the mid-1990s and upgraded a decade later. The new complex, built just south of the old one, will have 90 boutique hotel rooms , six restaurants, a cabaret-style lounge and an concert venue that can stage indoor and outdoor shows.
Like other Arizona tribes, the Gila River Indian Community will provide gamblers — and those who don’t play — with upgraded services and amenities.
“You’re starting to see bigger and more luxurious hotels ; you’re starting to see the ancillary services, like the golf courses and the spa and the high-end and unique restaurants,” said Mark Brnovich, Arizona Department of Gaming director.
Casino operators want visitors to gamble. But if customers aren’t going to hit the tables and slots, the house still can earn revenue from nightclubs, one-of-a-kind dining experiences and concerts.
Gila River leaders knew it was time for change at Vee Quiva in Laveen.
“Obviously it lacked many amenities,” said John James, Gila River Casinos CEO, of the soon-to-be demolished casino. “It was substandard compared to most casino operations in the state of Arizona.”
The new, $135 million Vee Quiva project is the latest in a string of casino remakes by the tribe.
A new and improved Wild Horse Pass Hotel & Casino opened in 2009 at Interstate 10 and Loop 202; a year earlier, the tribe opened Lone Butte Casino at Loop 202 and Kyrene Road.
At the same time, the Salt River Pima-Maricopa Indian Community opened its 15-story Talking Stick Resort.
Rise in gaming revenue
Vee Quiva’s new casino will open its doors as a strengthening economy is driving U.S. and Arizona Indian gaming revenues back up to pre-recession levels.
Despite a sluggish economy in 2011, Indian gaming revenue nationwide grew 3.4 percent to about $27.4 billion, according to the Indian Gaming Industry Report by Alan Meister, an economist with Nathan Associates.
It was the second straight year of growth after 2009, when Indian gaming saw its first and only decline in revenues, the report said.
Indian gaming grew at twice the rate of the commercial casino segment, which was 1.7 percent in 2011, according to the report.
In Arizona, Indian gaming revenue, or the amount wagered minus payouts, prizes and casino operating expenses, was $1.76 billion in 2011, a 7 percent increase from the previous year’s revenue of $1.64 billion, the report said.
Non-gaming revenue at Indian facilities was also up 7 percent from $233 million in 2010 to $250 million in 2011, the report said.
The combined gross gaming revenue for Arizona’s more than 20 casinos reached nearly $1.8 billion in fiscal 2012, up from nearly $1.7 billion the year before, according to state figures.
Aggregate gross revenue — the difference between gaming wins and losses before deducting casino operating costs — does not include revenue from hotels, restaurants or other casino operations.
An improving state economy has meant more gambling revenue and hospitality jobs, said Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business at ASU.
“There’s kind of a new angle here in that Internet gaming is a competitor, so there’s competition for the gaming dollar, but meanwhile, the non-gaming side continues to escalate,” McPheters said.
Luring younger visitors
Arizona casinos, like others around the nation, are offering more activities besides gambling. The move is in part an effort to capture younger players.
Young adults ages 21-35 had the highest rate of casino visitation, as nearly two out of five, or 39 percent, reported visiting a casino in the past year, according to an economic impact study released by the American Gaming Association in May. The study included a survey of 1,100 people.
In addition, young-adult casinogoers are more likely to go back; nine out of 10 say they plan to return to a casino in the next year.
Non-gaming activities are an important part of the casino experience for both young adults and general casinogoers, with fine dining the most popular amenity for the general population, according to the report. Sixty-nine percent of all casino patrons say dining is the most popular casino amenity while the figure was 76 percent for young adults.
“However, young-adult visitors are more likely to take advantage of non-gaming amenities like shopping, live entertainment and recreational facilities like spas or pools,” the report says.
Visiting a bar or club was the second-most-popular pastime for visitors ages 21-35, with 65 percent saying they had visited a bar or club.
More than a quarter of visitors say they never or rarely gamble.
Affordable elegance
Vee Quiva will feature an open and airy casino floor offering gamblers long sight lines. Eighteen large LED light panels hang from the ceiling, allowing color and theme changes.
Frank Lloyd Wright-inspired designs and lighting are part of an effort to change the look and feel of the current casino to one that offers purples, pastels and easy access, James, Gila River Casinos CEO, said.
Gaming tables are wider and shaped so dealers are closer to players for a more intimate experience
The focal point of the casino is the Square Bar, which sits on platform overlooking the tables and slot machines.
“Everywhere is a bird’s-eye view of seeing people, being seen. It’s the center of energy,” says James, who worked at several casinos in Las Vegas before coming to Gila River.
Hotel suites with 50-inch TVs will be just steps from a small “social” pool that is more for mingling than swimming.
VQ Live will feature bands, signature martinis, and indoor/an outdoor bar and patio for 100 people.
The new Vee Quiva will cater to luxury-loving travelers and locals, but prices won’t startle current customers, Jones said.
He points to a food court featuring Dunkin’ Donuts, Panda Express, Fatburger and Los Reyes De La Torta.
Menu items at the casino’s premier restaurant, Ditka’s, will be less expensive than at the eatery’s signature Chicago location, James says.
“Anybody can afford anything on this property,” he says, adding the average bill for two at Ditka’s will be less than $50.
Vee Quiva, the only casino west of Interstate 17, will add about 300 new full- and part-time positions to staff the new casino. The jobs created are predominantly food and beverage positions for the new dining options.
The Gila River Indian Community considers pay ranges confidential, said Melody Hudson, Gila River Casinos public-relations manager.
More than 580 employees in the current casino will move to the new one, officials said.
Among all the sectors in the state’s economy, leisure and hospitality is closest to where it was in terms of employment before the recession.
“You can’t say that for the overall Arizona economy,” McPheters said. “We’ve added back about 40 percent of lost jobs whereas that particular sector has just about added back 100 percent of lost jobs.”
Future competition?
While Vee Quiva is the only gaming enterprise in the West Valley, the Tohono O’odham Nation is seeking to build a casino on land it purchased near 95th and Northern avenues, not far from Glendale’s sports district.
The plan has been mired in legal battles since 2009, but last week a judge ruled the state compact governing Indian gaming does not ban more tribal casinos from opening in the Phoenix area. Other tribes, including the Gila River, have argued the Tohono O’odham plans would violate the voter-backed compact.
Gila River Gov. Gregory Mendoza would not say how Vee Quiva would compete with another casino in area. Instead, in a statement, he argued that the question is about the integrity of the compacts.
“The Glendale casino disrupts this market parity and negatively impacts all tribes that benefit from the Phoenix market,” Mendoza said.
