Tunica: Another one bites the dust

Even before Arkansas casinos could clear their holsters, a third Tunica property has bitten the dust. Penn National Gaming took the hit, as Resorts Casino Tunica was announced to close on June 30, leaving six casinos in the rural Mississippi area. Resorts was never the same after bumbling Tom Barrack and Colony Capital bought it and crushed it with debt. Penn picked it and one other Tunica casino up for a $44 million song. However, the economy was against it and 200 workers (a remarkably small casino workforce) will soon find themselves unemployed. Penn’s neighboring Hollywood Casino Tunica will remain open, as will a third Penn-owned casino and the company will try to find jobs for displaced Resorts workers there.

Penn is getting off relatively lightly. It was merely the operating company. Real estate owner Gaming & Leisure Properties will be lumbered with a venue that is surely impossible to sell. (Harrah’s Tunica was simply scrapped after closing.) The Caesars Entertainment bankruptcy also hit the local economy hard, leading to the end of a private utility company and of subsidies to the local fire department. Of these latest developments Penn’s Al Britton said, “With our acquisition of Resorts Casino as part of the two-property deal, we knew we were acquiring an aging barge in need of significant capital improvement. While we did everything in our control to keep the property profitable over the last two years, increased competition from recent gaming expansion in Arkansas continues to drive the property’s business volumes lower.” We hope Tunica has hit bottom but kind of doubt it.

* In similar straits, Lucky 21 Casino (whose name proved heavily ironic) abruptly closed, putting 115 employees out on the street. It happened in the predawn hours of April 8. The Washington State casino had been losing money “hand over fist” and its shutdown had been contemplated as far back as November.  Ownership went back and forth on the closure until a midnight consensus was reached. Despite making a $6,000 playing-card purchase at the last minute, management didn’t plan well for a shutdown, leaving workers three weeks in arrears on salaries. Now they have to hope they can recoup something from the liquidation proceeds. At least those whose wages were tipped were able to cash out.

“As far as casinos go, there will never be another casino in there ever again … we’re the third group to go in there and fail,” said General Manager Rich Lemieux. The real victims here are the workforce. Management felt sufficiently flush to schedule a $58,000 giveaway this month although—and this was a clear warning sign—inventory was not being restocked. Employee accounts indicate that Lucky 21 was a happy place to work. Not anymore.

* In a strategic move, Caesars Entertainment—having captured the SoCal market with Harrah’s Rincon—is making a play for northern California with a new casino near Ione, called simply enough Harrah’s Northern California. It’s a joint venture with the Buena Vista Rancheria Me-Wuk Indians. The casino is scheduled to open on the afternoon of April 29 (the formal opening will be May 17), just in case you were making any travel plans. “I would describe this as kind of modern but also fitting in with the landscape — so we’re not big and flashy outside,” says casino executive Lisa Yahrling. The 20-table, 1,000-slot casino has a subdued exterior, in keeping with rural Amador County‘s peace-of-mind atmosphere. It will also juice the local economy to the tune 500 full-time jobs. Alas, you can’t stay and soak in Amador County atmosphere just yet: A hotel won’t be added until sometime in the indefinite future.