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StumbleSlot operator sees signs of recovery in Las Vegas
Mona Shield Payne / Special to the Sun
Nicole Sheldon plays a Gamblers Bonus game Friday at Chicago Brewing Co. Gamblers seem to be favoring video poker bars over locals casinos in the recession.
Monday, March 29, 2010 | 2 a.m.
During the real estate boom, video poker bars mushroomed across the Las Vegas Valley like weeds after a desert monsoon.
But with the recession, many bars have fallen on hard times. Several built within the past few years have closed.
It’s a testament to a harsh reality that even such humble desires as a few beers, a few hands of video poker and a dinner special at the bar after work have become unaffordable for many people.
In this respect, United Coin Machine Co., one of the largest operators of slot machines in bars, convenience stores and other small, noncasino locations, might serve as a barometer that offers some hope.
The Las Vegas company runs the Gamblers Bonus slot club in hundreds of Southern Nevada bars that rent the poker machines and splits the revenue with bar owners.
United Coin’s core customers include construction workers and employees in the casino and hospitality industries — people who have been disproportionately affected by the housing slump and the recession that included mass layoffs.
The company operates about 6,000 machines in Nevada, 1,000 less than its peak a few years ago.
United Coin has removed its poker machines from at least 30 bars — many of them outgrowths of the real estate bubble — that were closed in the recession.
“We and our competitors expanded too fast,” says Steve Arntzen, United Coin’s chief operating officer. “Almost every (shopping) center in the planning had a tavern as a cornerstone. That’s just too many. In many cases, the tavern was the last to go. We’d come in and remove our equipment and there wouldn’t be a single tenant within the complex.”
What United Coin has lost in the bar trade it has partly made up in convenience stores, which have four or five machines instead of the 15 typically allowed in Nevada bars.
The company has added machines to about 30 new convenience stores in recent years.
Still, United Coin’s slot route revenue fell about 15 percent in 2007 and 2008 and dropped another 10 percent to 15 percent in 2009.
In February and March, however, the revenue has been about the same as it was in those months last year, Arntzen says.
Arntzen wouldn’t reveal specific revenue figures for the company, which is privately held. And he cautions that two months doesn’t make a trend. But he sees the respite from a three-year financial slide as a positive sign.
It’s unclear why revenue has leveled off, but United Coin has noticed one advantage that video poker bars have over casinos. Many locals casinos have cut back on cocktail service and drink comps. Some bar customers have complained about the service in casinos, so Arntzen figures they are choosing small bars to assure the timely arrival of free drinks while gambling.
“If you don’t get good service at a local bar, something’s wrong,” he says. “A bartender in one of our establishments will have 15 games dropped into the bar and may only have 20 people in the place. You have to try to give poor service.”
Nick Hubber, director of operations for Magoo’s Gaming Group, calls the small bar concept a “silver lining” in the recession.
“People in this town want quality service. And you’re not going to get better service” than in a local bar, he says.
His company, which owns 13 bars in Southern Nevada including six Magoo’s, five Loose Cabooses and Chicago Brewing Co., has witnessed declines similar to United Coin’s over the past three years as some customers aren’t coming in as often and others aren’t gambling as much. But January and February showed slight improvements, he says.
Like Arntzen, Hubber anticipates an imminent turnaround for established, well-run bars.
“The local tavern is closer to home,” Hubber says. “For some customers, it’s like an extension of their family. Customers tell us they don’t know if they have the money to do this or that but they can still stop on the way home and see their friends at the bar.”
The bars that have the Gamblers Bonus may have more than just speedy drink service working in their favor, though. Last year, United Coin initiated an automated, randomized bonus program that bar owners can turn on at any time. Regardless of how much Gamblers Bonus members gambled, they started receiving bonus points for certain video poker hands last year.
That’s a different strategy from casinos that comp big players in the recession, but have tightened up on comps for the small fry.
The bonus program, Arntzen said, contributed to an increase in Gamblers Bonus membership in 2009 amid the worst economic year in Las Vegas history. About 20,000 players signed up.
It’s a sign that people are gambling, although they may simply be cashing out their extra dollars instead of playing them through the machines.
Arntzen says he certainly can’t fault anyone for that.
“Given all that’s happened, it’s a miracle anyone has any money left.”
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Let's see what kind of interesting negative comments to follow
probably local bars alot more lax on the machine
I USED to go and play in these types of bars regularly, but as Vegas grew, the demographic of the bar patrons changed for the worse. The patrons of yesteryear were casino workers, older folks just getting out to have fun, now a good majority of the patrons are punks and aggressive ones at that, so i dont go to the bars anymore due to the fact the seem dangerous. With the above and the fact that smoking laws have been enacted have also helped reduce the business, its not just the economy.
You get better service, probably better odds on the machines and definately an establishment that cares about you as a customer compared to The Strip.
Let's hope so, and it is always nice to read something positive. Smoking / Non-Smoking hurt some of these operations as smokers fled for the Casinos. But, perhaps times are changing...
"Given all that's happened, it's a miracle anyone has any money left."
Especially after playing Gamblers Bonus.
I fled to the local bars to avoid the smokers in the casinos. Some of those low ceiling cigarette stinker casinos on Boulder Highway seem to have pitiful ventilation systems, and I can't imagine how a non smoker could work there.
But in these desperate times, losing a few years of your life is not as bad as losing your job, I guess.
I got good service at the MGM Grand's bar/video poker area weekend before last. Maybe not all strip properties are as good as MGM Grand.
"Almost every (shopping) center in the planning had a tavern as a cornerstone. That's just too many. In many cases, the tavern was the last..."
Sorry, but those brand new, yuppified bars/restaurant structures were no where NEAR what real taverns are and how they really look!! Those from back east know what I'm talking about. There were a few places around the valley that would try to fit the "tavern" description and came sort of close, but most were just bar/restaurant places. Where I grew up, taverns never sold food unless you consider a bag of chips, peanuts or pretzels food to have with your ice cold Miller or that whiskey.
In Vegas, we had one place walking distance from our first house and went there a lot. It was an Irish-pub type atmosphere and always crowded. The VP was good, too, with decent payouts. If I didn't feel like driving to the casino, I would go there play some VP and have a cocktail or two and not worry about driving. And the food was excellent! I'm not even sure if it is still open!
There's a nice one near my store that I'd love to patronize, really nice folks running the place and good food. They allow smoking in their slot area though, and it reeks like crazy. Ten minutes in the area and I go home smelling like an ash tray.
So, I play at Green Valley, where they have given the non smokers a place of their own, albeit small. The waitresses there are plenty nice as well.
They really need to do something about allowing smoking in the casinos! A statewide indoor smoking ban needs to be enforced, including casinos.
Video poker destroyed the atmosphere of the bars in las vegas. I used to go to the brittish pubs because they had darts and music and no video poker, then they were bought out and immediately they put in machines. Years ago the triple play used to have a few machines but also had darts and pool and other table games--was a great place to meet people and hang out---then they pulled all the games out and put in as many machines as they could fit and ruined the whole joint--I HAVN'T BEEN BACK SINCE! Forget all these greedy bar owners---how much is enough? What you get are mostly the gambling degenerates slowly losing tons of money, with their head tilted down, they never talk to anyone except to get more change from the bartender to lose some more. The owners of these bars are as bad as the casino executives and i won't go to their bars at all anymore---damn shame. I've worked with many, many people who spend hours and hours blowing all their money and family ties playing these stinking bar machines. One girl committed suicide after blowing about 70k and getting divorced over bar video poker---I know it's not the owners fault, but the reality in las vegas is most of these bars are built for the machines as the main attraction, not some small side casual pastime--the machines are the only reason now anyone builds or owns a bar!
"Forget all these greedy bar owners---how much is enough?"
mrlucky...have you ever owned and operated any business? It's not easy to make a profit...that's why most new businesses fail.
"A statewide indoor smoking ban needs to be enforced, including casinos."
flapsychdoc.....it's called freedom of choice and the business owners should be the ones to make that decision, not the politicians.
There used to be one spot across the street from Circus Circus called The Algiers Hotel. It was an original property on the strip since the early fifties which was built as an overflow property by the owners of the Thunderbird Hotel which was next door (going north). It was the perfect little spot with clean affordable hotel rooms, and a nice pool in the center of the property. It had a great Steakhouse and little separate bar room which was very fifties in style and furnishings, and just a few video poker machines at various denominations. I loved going to this place after hours. The bartenders were great folks, and vp players got free stiff drinks as well. The family who owned the place finally caved in to the enormous pressure of the real estate boom and demand for strip property and sold the place for a astronomical profit to Turnberry who turned it over to fountainbleau. We all know the rest of that story. But once upon a time Las Vegas had some character and great romantic little spots like this which have all disappeared now Shame..
Remember the Marina Casino? On my first trip to Vegas in 1988, I found it to be a nice small casino with a band playing at 3 in the afternoon. It had different type machines like horse racing and soccer games. Met the greeter, named Joey Maxim, a former fighter. Nice guy.
A year later, I came back, and the place was gone, to build the MGM's parking garage. To me, that's when the city started heading in the wrong direction. Now we're in big trouble because of the East Coast fat cats who have driven this town into near ruin.
My goodness, I just got back home and noticed of all my many posts, this was the first one ever removed. I certainly didn't mean any insult, but I was wondering what job the lady in the picture held. She is well dressed, but I noticed an abundance of tattos. I was raised with the old axiom about dressing for success. Accordingly, I wondered if she is a bank president, a human resource manager, an attorney, a medical doctor or specialist, or perhaps a stripper. What do you think?
These machines prey upon the retards that Nevada is full of. Fleecing the tourists is one thing, but if you live here and are stupid enough to feed your money into these machines, you deserve to go broke, idiot.
Van_Guard :
They are called tramp stamps, and those who have them all over themselves are usually people with low self esteem.
ATVDAD :
These names describe what you are saying :
Stardust, Sands, Frontier , Dunes, Maxim, Silver City, Algiers, Desert Inn, Slots O Fun, Sahara, Tropicana, Horseshoe, Aladdin, Wet N Wild, La Concha, Riviera, El Morocco, Nevada Landing, Holy Cow, Hacienda, Glass Pool, And all of the other fifties gems motels from north to south along the strip that got torn down to "improve the views" or make way for the new mega resorts. Las Vegas is gone man..
Oh yeah not forgotten either is the old Klondike Motel Casino out by McCarran!!!