Two Spokane casinos close

Friday, Dec. 4, 1998 | 11:56 a.m.

Two Las Vegas-style casinos have closed in Spokane, Wash., within the last month, leading officials there to conclude the market was over-saturated with gambling.

The Spokesman-Review newspaper reported Spokane's Mars Casino closed Nov. 24 after eight months of operations. While the Mars was plagued by security concerns and received numerous warnings from state gaming regulators, win at the casino declined steadily from the time of its March opening, the newspaper reported.

Then, on Wednesday, Havana's casino closed, citing low demand for gambling. Havana's, located inside the Ram restaurant, was replaced with pool tables.

"We believe the town is over-saturated with gaming," Kevin Kalstad, general manager of the Ram, told the Spokesman-Review. "There are just too few players."

While Havana's was closed by choice, Mars was chased into closure by state gambling regulators and insolvency. A year-old Chapter 11 bankruptcy filing that had protected Mars' parent company from its creditors was converted to a Chapter 7 liquidation bankruptcy on Nov. 24, the day it closed, the Spokesman-Review reported.

After opening in March, the Mars received numerous warnings from state regulators that its internal security controls were not up to par, the Spokesman-Review reported. On Oct. 28, the Washington State Gaming Commission ordered the Mars closed, but appeals allowed the casino to remain open until Nov. 24.

Though the Mars' owner did not comment to the Spokesman-Review, it appears the casino's financial situation may also have contributed to its closure. The Mars won $469,000 in the second quarter. By the third quarter, win had dropped to $341,000.