Gaming briefs for April 22, 2004

Thursday, April 22, 2004 | 10:42 a.m.

More visitors flying in

RENO -- More people visited the Reno-Sparks area for the first time in 2003 than the year before and more of them flew in, according to a visitor profile.

But fewer came by car and their median age increased, contrary to the market's tradition as a drive-in destination from Northern California and marketers' preference for a younger crowd.

The statistics come from a survey conducted by InfoSearch International for the Reno-Sparks Convention & Visitors Authority.

Deanna Ashby, the authority's executive director of marketing, said the increase in first-time visitors from 15 percent in 2002 to 22 percent in 2003 indicates the economy has improved and people are traveling again.

The number of visitors arriving by car dropped from 70 percent in 2002 to 60 percent in 2003.

"It's definitely worrisome for us," said Jack Fisher, general manager of the Boomtown Casino and Hotel in Verdi, two miles east of the state line on Interstate 80.

"That's the part where we get hit the hardest, with the day trippers. Air traffic is very, very minimal for our business here."

In 2002, 59 percent of visitors were from California. In 2003, Californians made up 44 percent of those surveyed. The percentage of Bay Area visitors slipped from 27 percent in 2002 to 17 percent in last year.

Track subsidy plan advances

TRENTON, N.J. -- The state's Casino Reinvestment Development Authority has given preliminary approval to a deal in which New Jersey casinos would boost purses at three state racetracks in exchange for the tracks delaying their plans to install video lottery terminals.

Under the plan, the casinos would pay $86 million in subsidies over the next four years for Monmouth Park, Freehold Raceway and the Meadowlands. More than half of the money would come from the CRDA, which controls disbursement of about $1 billion in casino revenue that goes toward redevelopment projects in Atlantic City and elsewhere in the state.

Authority members gave their approval to the plan Tuesday, and a final vote on the matter is expected next month after a public hearing is held.

The CRDA would provide $52 million for the plan, with the remaining $34 million coming from the casinos. Proponents say the added money will help the tracks put on high-quality races with more entries per race and generate more betting revenue, but critics claim the terminals would be more beneficial to the horse racing industry in the long run.

Prairie Meadows expansion set

ALTOONA, Iowa -- Once Gov. Tom Vilsack signs the gambling bill approved this week by the Iowa Legislature, Prairie Meadows racetrack and casino could begin adding table games and video poker within six months.

"If all these ifs get through, then we'll try to accommodate people as soon as we can with some games," said Gary Lucas, chairman of the Racing Association of Central Iowa that operates Prairie Meadows. "I think it'll be less than a year. I would say within six months. But, you have to train people, get equipment, add security, there's a lot of things involved."

The Altoona track's board of directors voted 12-0 to seek the expanded gambling games should the bill become law. The governor is expected to sign it.

That would mean putting up _$10 million for a license application that the facility would get back as a tax credit from 2008 through 2013.

Prairie Meadows General Manager Bob Farinella estimated the added games would add _$40 million to _$60 million in revenue per year.

The racing association appointed a six-member committee to begin studying how to expand Prairie Meadows' facility should it get the table games.

Prairie Meadows' expansion would also include enhancing its food service, perhaps adding a buffet. An existing buffet on the fourth-floor clubhouse is sometimes congested with bettors playing the horse races and slot players seeking meals.

The eating options are limited on the casino level.

RACI members said Wednesday the gambling bill left Prairie Meadows with uncertainty, because it did not bar new riverboats from opening within 50 miles of existing gambling casinos.

RACI accepted a proposal from the Iowa Senate last week in which Iowa's racetracks would forgive _$128 million in tax debt owed by the state and accept a 24 percent casino tax rate if they added table games. Riverboats would be taxed at 22 percent. RACI also wanted lawmakers to allow no new casinos within 50 miles of an existing casino -- a reaction to talk of adding a Des Moines riverboat.

"We all voted for the 50-mile radius," RACI member Florence Buhr said. "Now, we're talking about give-and-take. What happened? Whether it was a dealmaker or not, I thought we were pretty firm on the 50-mile radius."

Dick Thornton, Prairie Meadows' lobbyist, said any new riverboat will be subject to approval by the racing and gaming commission. He said he also thinks there is language in other gambling laws that could prohibit a Des Moines riverboat.