Editorial: Reno must address all challenges

Sunday, Oct. 24, 1999 | 10:19 a.m.

When the California Supreme Court overturned a voter-approved referendum that would have allowed Las Vegas-style gambling on Indian reservations, Nevadans were relieved. But this comfort didn't last long. In September Gov. Gray Davis reached an agreement with the tribes, which is expected to pass constitutional muster, that will allow gambling if voters approve an initiative on the March ballot. Considering the widespread support a similar referendum received last year, it now seems only a matter of time before our neighboring state to the west, which provides Nevada's largest single source of visitors, will be a serious competitor for gamblers.

This possibility hit home earlier this month when Station Casinos, a successful company that has built several casinos in Las Vegas catering to locals, announced it would form a business partnership with the United Auburn Indian Community to run a casino near Sacramento. The casino would be just 7 miles from Interstate 80, the highway that feeds most of the 1.5 million Northern Californians who use their cars to visit the Reno-Lake Tahoe area. Those motorists account for almost 30 percent of that region's total visitors, causing some genuine concerns about the impact Indian gaming will have on Reno, whose casinos pale in comparison to the huge destination resorts on the Las Vegas Strip. In addition to the close proximity, winter months also create havoc for Reno, as snowstorms make it difficult for motorists to drive there from Northern California. If a ca sino is sitting just outside Sacramento, this will add to Reno's woes, because few may be willing to cross the mountainous region and take a chance of getting stranded.

Even the most optimistic of gaming analysts believe that Reno will feel the pinch of competition, and if Station Casinos does well it will likely lead to more Nevada-based casinos getting into joint ventures with tribes. For far too long during the 1990s Reno slumbered while Las Vegas prospered. Reno didn't seem to have a vision of improving its tourism-based economy, including cleaning up a deteriorating downtown. But some steps have been taken to address these concerns, and marketing efforts that emphasize the region's outdoors and other amenities -- in tandem with gambling -- should be helpful. And a story Thursday by the Sun's David Strow indicated that Reno hotel-casinos and tourism officials are taking note of the risks involved if they don't respond with an aggressive plan to lure tourists to the Reno-Lake Tahoe area. Reno doesn't have the resources to replicate Las Vegas' success to date, but it still has the opportunity to compete with Indian casinos in California as long as it embraces innovative and creative thinking.