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November 11, 2009

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GAMING:

With patrons as advisers, small casino thrives

Club Fortune winning business by seeking input, giving back

Image

Sam Morris

Players fill the tables in the new poker room at Club Fortune Casino in Henderson Saturday, May 30, 2009.

Wednesday, June 10, 2009 | 2 a.m.

Club Fortune

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Beyond the Sun

Club Fortune doesn’t have a movie theater, a nightclub or even a hotel.

But it does have loyal customers such as Jeanine Harris, who is among a number of locals who in the downturn have converted to the locals joint from bigger, suburban casinos.

“The food’s good and I like the slots and video poker,” Harris, 48, said. “It’s more laid-back here and everybody knows you.”

While many suburban casinos struggle to keep their regulars coming back as they cut back on gambling promotions and staff, Club Fortune, a nondescript casino near Boulder Highway, is moving in the opposite direction and winning new customers.

At this small casino, hidden behind a strip mall and a housing development, customers can pick up a bottle of booze or a box of cigarettes from nearby displays or reach into a freezer for an ice cream treat in a recently opened store for gamblers.

Like a high-end convenience store, the player rewards center features items from a brochure that reads like an American Express catalogue before the recession, with XBoxes, Armani watches, Cuisinart wine chillers, TaylorMade golf clubs and Sony computers the size of clutch purses.

Over the past few months, the 25,000-square-foot property at 725 S. Racetrack Road in Henderson removed administrative space to create a poker room with flat-screen televisions, an entertainment lounge for bands and live music-backed karaoke, and a sleek, rectangular bar area with seating for 100 people and offering creative concoctions such as jalapeno-infused martinis and vodka drinks that taste like apple pie.

Click to enlarge photo

Some of the high end points rewards gifts at Club Fortune Casino in Henderson are photographed Wednesday, May 27, 2009.

Club Fortune Casino

But that may all be window dressing. Customers say their wants and needs are more basic than plush bar seating or the prospect of winning a Margaritaville frozen drink mixer. Customers say they are defecting from bigger casino chains because they like being greeted by name by casino management and thanked for their business. They also like being asked for their recommendations to improve the casino.

The ice cream freezer showed up after a customer suggested it, along with mini-baccarat and a quieter, more low-key selection of piped-in music during the day.

The casino also will add live keno — a dying game in some casinos — at the request of some regulars and has promised to keep its $1.49 breakfast special — a price that has survived more than four years of inflation.

Comment boxes are placed throughout the property and casino managers say they respond to all comments.

Big casinos accept customer feedback, but Club Fortune is more aggressive in asking customers what promotions they would like and how they could be improved. Defectors from other casinos get a few spins at the slots on the casino’s dime.

“You just need to listen to your customers and give them what they want and they will come back, again and again,” said Jay Fennel, partner and chief operating officer.

That’s an obvious yet difficult task at many Las Vegas casinos, which have been forced to cut the backbone of their business — the bartenders, cocktail servers and slot attendants whom customers interact with most frequently. Some casinos have thinned their promotions by offering cheaper and fewer freebies and making it more difficult for gamblers to win them.

Club Fortune’s staff of 175 has increased by about 12 percent from a year ago, and the property is hiring up to 10 more workers to keep up with increased business. The property offers a 401(k) plan and is still matching contributions, unlike most of the giants.

The property’s casino revenue, owners say, has held steady in recent months compared with state figures showing gambling revenue declines for locals casinos.

Because they generate less revenue than big properties, smaller casinos generally can’t afford fancy attractions and therefore must use their smaller scale to their advantage. Some gamblers prefer the folksy atmosphere and the personalized touch that comes with a small staff of career employees serving a stable of regulars.

Casino giants are dependent on revenue growth, year after year, to support millions and even billions worth of loans to fuel that growth. Freed from that cycle, small casinos can operate on slim profit margins.

Owner Carl Giudici, who bought the former bingo hall 10 years ago and has since sold other casinos in Reno, has bigger plans for Club Fortune. About three years ago, when some locals casinos were beginning to see a slowdown in business, the property — located in one of the most competitive Las Vegas suburbs for casinos — gained market share.

With very little debt on the casino, Giudici is reinvesting profits at a time when his competition can’t afford to, spending $4 million in recent months on upgrades to thank regulars and lure new customers. The lounge, bar and poker room wouldn’t look out of place in a more upscale casino — though they aren’t so fancy as to alienate the seniors who make up about half of Club Fortune’s customers.

Click to enlarge photo

The remodeled table game area in Club Fortune Casino in Henderson is photographed Wednesday, May 27, 2009.

But the real work is happening on the compact casino floor, where database marketing manager Jason Babler, a former Station Casinos employee, swaps stories with customers.

“We’re always trying new things” to keep gamblers interested, he said.

“At other places you feel like a number; here you feel like you’re a guest,” said Debbie, 57, who used to gamble at Station’s Fiesta Henderson. “They smile here. They’re personable.”

Debbie, who declined to give her last name, said she likes the greater variety of promotions at Club Fortune, which has rules that are easier to understand. She also appreciates the chance to win high-end items. Locals are burned out on the typical T-shirts, hats and other logo wear offered by many casinos, she said.

Debbie Porto is another player who no longer gambles at Fiesta Henderson. As a former Fiesta Henderson employee, Porto says she has seen several of her former customers at Club Fortune.

Bigger casinos don’t have the time or staff to attend to each player’s needs in a timely way or come up with a big variety of promotions the way smaller places can, she said.

“That’s what people want — variety,” said Porto, 53. “And they like the friendly people who work here.”

While Club Fortune doesn’t boast many high rollers and its regulars might spend less than those at other casinos, many of its customers visit the casino several times a week, Fennel said.

Click to enlarge photo

The exterior of Club Fortune Casino in Henderson, which is undergoing renovations, is photographed Saturday, May 30, 2009.

A former director of slot operations for Station Casinos and a former slot director at the Hard Rock Hotel, Fennel is also a defector from big casinos.

But Club Fortune won’t be competing with the likes of the Hard Rock. At the entrance is a giant metal barrel filled with tickets for a monthly prize drawing. There’s also a bar with cheap eats near the door. Like many neighborhood joints, the ceilings are low and the carpet is unremarkable and dark — all the better to hide dirt. (Other upgrades, including new carpet, are yet to come.)

Giudici’s success at Club Fortune has spurred an investment partnership that is seeking to buy up distressed casinos — including small casinos owned by giants that are swimming in debt.

“This isn’t rocket science,” Fennel said. “You have to make the guest happy and your service needs to be consistent. And you can’t always be moving the goalposts for players.”

Discussion: 22 comments so far…

  1. Wow! Who would have ever thought that listening to the customers makes good business sense?

  2. The big cats in town need to stop by and see what builds a business.....CUSTOMERS!!!

  3. Sounds like they've got the secret formula that could apply to every single casino regardless of customer base

  4. They will probably be packed with Station customers this weekend.

  5. Good for them!!! Looks like they are trying to get the feel of "Old Las Vegas" back! What this casino is doing is using the winning combination that made Vegas such a great place years ago... DOWNTOWN.. take note, you can do it again! The Strip, you're hopeless, just keep on building those Citycenter type places and watch your business dwindle...

  6. somebody knows how to run a casino, thank god. linda in vegas your right on, the strip lost it when wynn built the mirage and corporate america took over the strip. strip operators forgot that most folks come for the gambling, visitors used to be able to stay up all nite and play slots on a $100, now your lucky if you get breakfest for 2 for that $100. i remember when i dealt craps back in the 70's, our crew would go to the castaways for great steak specials that strip hotels now charge you stupid prices. untill sole owners start owning strip properties we're doomed.

  7. Sorry kids, but the place is also a cigarette stink-hole. So it's basically a place for rednecks and mobile home owners to gamble. But I must admit it's better than those other stinkers down on Boulder Highway. Choose your poison...

  8. How about that.. Question is.. Will it TAKE all over Vegas.. Not sure. I always loved the smaller casinos - Smaller pools, casinos.. It's like being there in Vegas - but being HOME too.

    Twitter me if you want to talk more about this sorta thing - search for "xfilespoker" (or just google xfilespoker)

    When in Vegas alone in the 90's I stayed in the Continental - (Later Terrible s) I always Loved them both! Terrible's a little more, as they spiced it up a bit - The POOL to me was just perfect and I never minded the JETS going by.. (you get so used to it)

    Now I'm hearing prices near $30 a night - Orleans, etc.. and It MIGHT get my family there..

    All we got to do now (dear readers and posters) - Is get the SLOTS back to what they where - Cuz what we have today is HIGHWAY ROBBERY! $100 bucks here in PA get you nowhere - and maybe NOT even a CHERRY!

    For the RECORD (casino industry)- PEOPLE have had enough of you guys tweaking the outcomes - "F" the JACKPOTS - get it back to SLOT payouts of the 70's, 80's and early 90's.. YOU BUMS! CROOKS!

    Enough of the BIG fancy RAT TRAPS..

    Putting in 5 coins and getting paid 2 IS NOT A WIN! Stop RINGING the BELLS! It's a STICK UP!

    Google xfilespoker and meet me in forum if you agree!

    Great article!

    I'll be sure to check this place out next time I'm in Vegas BABY!

  9. Regardless of prohibitive laws attempting to protect the American gaming industry monopolies throughout the country more and more American gaming patrons prefer to acquire their 'gaming-fix' through the privacy and comforts of their own homes, doing so through online foreign gaming service providers.

  10. Sounds like these guys went back to basics. I hope they continue to do well.

  11. bdover, what casino ISNT a cigarette stink hole?

  12. A return to basic values: a place to gamble that offers a pleasant experience in an attractive and well-staffed atmosphere. Value! Sure some segments of the market might opt for better ventilation, some like free tee-shirts, many prefer simple drinks to exotic ones. The Strip Casino management focuses on those who want "an experience". Club Fortune focuses on those who want to gamble without being trampled by hordes of people rushing to overpriced nightclubs or over-hyped shows. Ofcourse slots and keno are not my preferences but many people want them so its nice to provide them in an honorable fashion. Young "newbies" want an experience, a hangover and music at a deafening roar. Club Fortune provides loose slots and subdued music. Its a casino, not a trendy ultra-expensive nightclub with exhausted over-worked dealers.

  13. My first time experience at Club Fortune upon arriving there....

    While parking, I almost got collided by a rimrod driver in a hurry... then walking across the parking lot I almost got ran over... and im thinkin - what a cheesedick place this is.

    So when I went inside the place and couldn't believe they had a craps table in there...and the table patrons even shed a little extra room for me to squeeze in so I can play (kinda rare nowadays)... and the line minimums were set at $1 - I thought it was real kewl to see a $1 table once again...

    This one young kid who they forced to show ID upon proving he was of legal age asked the table boss if it was OK that he could wager .60 cent minimum on placing 6 or 8 and .50 cent minimum on placing any outside numbers 4-5-9-10 since he only had $5 total to wager with .... and the table boss granted the kid the .50c and .60c minimums....

    All the dealers that ran the table were so upbeat, super friendly, and even asking novice and advanced players on what they want to do with their floating and pending wagers while the game went on, they want their players to win.

    They constantly gave out pointers to help minimize player's losses or recommending increased potential winning on better playing if a player would ask them, ...and informing player's upon increasing their $5 odds bet (on 5 or 9 line point) that for another dollar they will pay $2 more if it hits.

    The craps dealers also recommended the ins and outs at other places to hit upon learning to be a great player if youre willing to strive for excellence.

    Needless to say I finished ahead $28 and cashed out, leaving a $20 toke for the dealers before cashing out and I told the dealers they deserve it cuz they treat their customers right.

    Funny thing when I went to the cage though.... upon presenting my $208 in chips to the cashier, he had to get on the hotline phone to get authorization to payout the cash - the only time I felt like a whale at a casino.

    In todays pricing and product standards, most everything at Club Fortune is reasonable with food and drinks - it is the closest to comparing like the good ol days in Vegas used to be... -at a friendly casino.

    Don't get me wrong, a handful of places are still super friendly, but Club Fortune does seem to turn it up a notch from my experience....the atmosphere is truly excellent.

    This is a great article too Las Vegas Sun , I might add !!!!!!!!!!

  14. Bring back the KLONDIKE INN, now that was a stinkhole.

  15. We need to bring back the coins! Playing the slots means nothing now. I want to hear those coins drop when I win something. Not silence!

    Also, Vegas needs to get with the program and bring back a water park. They made a mistake in destroying the one we had in order to build new buildings. Construction on the strip has gone over kill. Sad. Vegas is doomed if they don't stop the bs and stop over charging for everything.

    It keeps people away.

  16. This place is a dump. You can put lipstick on a pig, but it still is a pig. If you want food poisoning, lung cancer, and enjoy dirtiness, this is the place for you. The only customers who come to this pile of crap are those who are so old and lame that they can't drive to somewhere better. They sure did pay the Sun a LOT of money to write this for them.

  17. Wow listening to the people, how do they do it? Good for them I hope their business keeps growing and Lisa King the casino's premium sexy and deadly spokesmodel keeps working. Love you Lisa, -Seven.

  18. Hey frankenstein who PAID you to write your comments ???OR do you work for the BIG "locals" outfit..who have forgotten where they came from..!!..I seriously doubt Club F...would try and screw their vendors out of monies due them, unlike some in this city...To tvegas...I hope your right..and they blow their doors in! its deserved!!..

  19. The Klondike, like dollarbillz wrote, was a deathtrap. Can't imagine how employees, even smokers, could work there. But my favorite memory is talking with a guy at the Skyline. He worked at Binion's downtown, and was a dealer. He smoked like a fiend, and every 20 minutes or so, he had to go to the bathroom to unload phlegm and God knows what else. Spasms of coughing always preceded his bathroom visit. But he was a nice guy, and I hope he's still taking up space. It was amazing how as a result going to these stink-holes, I would go home, take off my clothes, and notice how they smelled like Mexico City on a bad day. I imagine the remaining stinkers on Boulder Highway haven't changed. And won't, until their prime customers fade into the night-prematurely...

  20. lvcorvette, what is someone with a corvette doing playing at Club Craphole? I hope you have "The Club" to keep that thing safe in that neighborhood. I'm not employed by any of these guys; but I do have to admit I don't understand why anyone would place in a smoky, flea-ridden joint when there are so many other places on Boulder Highway with more to offer their customers than a (bad) free taco. Part of the reason I figure the article is paid for is that the author describes this third-rate casino as a success without providing any financial results other than general comments like "holding steady" or hiring staff. Are their revenues up? Their profits? The Sun is usually far more discerning in covering the Big Boys; maybe they take pity on these amateurish operations.

  21. jfrankstein

    What classifies a third-rate casino? Which casino to you own? You are a fool to think that anyone pays for articles. Advertising yes but a good story in bad times is nice to hear once in a while. Especially since they have never layed anyone off. You need to rethink your comments.

  22. A third-rate casino is one with no valet parking, no event space, no amenities, and where someone in the cage answers the phone! Let alone smelling like an ashtray, and having the most disgusting food in the valley! I don't own a casino, but wish I did right near Club Craphole! I'd be raking it in just by offering a clean joint!

    Sorry, but I find it strange that an author that is so critical about the big boys, will just drool all over some property that doesn't share any financial results. Somebody knows somebody.

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