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Question of the Day - 24 December 2011

Q:
We have gone to the River Palms in Laughlin six times in the last three years. Each time we go there are fewer and fewer slots, and [fewer] table games. The downstairs is completely empty of all slots, table games and video poker: just a blank floor. I know that management keeps saying it’s going to be remodeled, but three years of this? The rooms need to be redone and the outside of the tower has peeling paint from the ground floor to the top. It looks like they are abandoning the property. Can you get the straight answer?
A:

"Thank you for your inquiry," writes River Palms General Manager Allan W. Kronberg, who also oversees the nearby Tropicana Express. "We have structured the second floor to now be a convention center and our first large event took place this year with an attendance of over 5,000 customers. We are expecting over 700 guests for New Year’s Eve in the same room. This is the first time we are able to accommodate this many guests for a special event.

"There are a lot of properties that need exterior painting right now," he adds, and certainly The Rio, in Las Vegas would at the top of the current writer's list, "but last year we made a very expensive investment in purchasing new mattresses for all of our 1,000 guest rooms." (A similar overhaul just took place at Buffalo Bill’s, in Primm.) Previous River Palms touch-ups included the addition of the Elite Island Premium Slot Lounge & Bar in June 2009, and the 2700 Club three months later.

"In today’s economic environment, we must make hard choices as to where to invest our funds and how it will affect our guest experience," Kronberg writes. "We have evaluated multiple options to renovate the property — each balanced with the potential for near-term growth in Laughlin. Any major investment nowadays requires greater confidence that you will generate a return on your investment."

Kronberg’s last two sentences strongly imply that Tropicana Entertainment’s confidence in the Laughlin market – where tourism has declined for 11 years straight and is at half its 1994 level – is guarded, at best. Gambling revenues in Laughlin had remained strong, despite the increasing dearth of visitors, but in 2010 they fell to a 13-year low and casino development is virtually at a standstill.

"Please feel free to have the guest contact me," Kronberg concludes. (We will duly forward Mr Kronenberg's direct number to the submitter of this QoD.)

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