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In response to the Rocky Mountain News editorial “Casinos on the edge” (May 25): Our firm has been studying the Colorado gaming market for many years, and we have long argued that increasing the $5 wager limit would have a positive impact on revenues, especially for table games. They are significantly underperforming, due primarily to the wager limitation.

Table game revenues can represent as much as 50 percent or more of slot net win in states such as Nevada, while in most other states the average ranges between 20 to 25 percent. Compare that to the 4 percent currently being generated at the Colorado venues.

Moreover, extending casino operating hours — they must now close at 2 a.m. — could also further impel overnight patronage. That would support the development of additional hotel rooms.

William J. Palermo is CEO of Gaming & Resort Development Inc. in Laguna Niguel, Calif.

READER COMMENTS

Tell me Mr. Palerom, how does increased walk in traffic relate to higher betting limits.Not only are you saying higher limits will increased this but also people will have more disposable income. Cripple Creek, Blackhawk and Central City are not and never will be anything close to Las Vegas or Atlantic City. I've seen the numbers from independent casinos, those that do not have the deep pockets of corporate owneship, and the walk in traffic is down an average of 24 % primarily due to the smoking ban and the drop in disposable due to a weak economy. The only people who would respond to higher stakes limits are those who are rich. The bread and butter of casinos is not now, nor ever has been, table games, as you must know. It is the everyday person playing slots who is the largest part of gross profits. Besides that, if you are involved in the promotion of casino business, how is it that you so off handedly ignore how the Colorado legislators decieved casinos by first exempting them to avoid their opposition to the Colorado Clean Air Act in the first place, with the approval of tobacco advocates who knew that organized casino efforts might prevent the implementing of the smoking ban. Then in a Machiavellian deceptive way rushed a bill through to remove that excemption which was their plan all the time. And now you expect them to once again cater to your desires for higher stakes limits? More likely they will increase the built in tax rates rates from 20 some % to 40 %on casinos that was part of the compromise they had to agree to to get their "temporary" exemption in the first place. The only way Independent casinos can survive is to Join in the fight we have waged in there behalf to preserve that exemption and support exemptions for the small business neighborhood bars and taverns we represent. We fought your fight for you, how about returning the favor.

Allen Campbell

Mr. Campbell is correct. The Gaming industry is, in the final analysis, a business. Business success requires a stable and satisfied customer base. Increases in gaming profitability through raising betting limits and extending hours only works when the same number of people come in the door. Substantially reduce the number of gaming patrons who come in the door with smoking bans and you create a reveue loss. The argument for increased betting limits and extended hours fails when government reduces the customer base with an unnecessary smoking ban stick, then attempts to assuage gaming industry concerns by extending an increased betting limits carrot. Gaming executives should be intelligent enough to not fall for that.

But there is an additional facet to this issue. Not only do smoking bans reduce patrons for gaming casinos but under revised ASHRAE standards the bans also reduce the quality of indoor air patronos breathe while playing at the tables or slots.

See "Environmental Tobacco Smoke in Perspective:" http://www.forces.org/writers/kjono/files/ets_perspective.htm

A declining customer base and reduced Indoor Air Quality through special-interest bans is a double-whammy business killer casinos could well do without.

Norman E. Kjono

My friend Norm makes a great point but , I will exstrapolate on one aspect of a point. If the patron's playing ability is diminished by lesser air quality and ventilation then the amount of time they will play is also deminished. It would do you well to also limit the time the casino is open as the players will not have the energy to support the casinos desired profit margin and the reduction of operating costs will increase profits within that limited time frame but, what the hell, the State will no doubt step in at the most inconvenient time and ban gambling beyond a carefully considered arbitrarily contrived amount of time anyway, so the only rational thing to do is fight bans as hard as you can.

Business is survival of the fittest according to Conservative doctrine, right?

So if the casinos can't make it with the current conditions then they should outsource or move or close.

Longer hours would not be benificial at all to the casinos or human life. There are accidects as it is on the mountain roads leading to and from the casinos and people are tired at 2 am. Imagine the mayhem that would occure at 6 or 7 am when, after a night of gambling, people are rushing to get home or to work. The roads are not made for that, they are curving along the mountains and longer hours would only mean more accidents and death. Higher limits would be benificial, but definately no longer hours.

It's a moot point anyway. The tobacco control crowd promised casinos an exemption because they knew that casinos could cause long and costly law suites to be born by the taxpayers money and effectively make it impossible to get a smoking ban passed. Then tobacco control move to get that exemption removed once the ban was passed, which was their plan in the first place. Can you imagine casinos getting a longer hours and higher stakes bill passed? Not on your life, not with the Extreme Right Wing Christian Zealots beating legislators over the head with distroying the morality of society club. Why any of these factions within our society have the right to usurp the freedoms and rights of the rest of us is the question every freedom loving person should ask and, when becoming aware that nothing is safe from their zealousness and fanatical minds and the actions they take to implement bans to suit their idiotic personal preferences, should rise up with a defiant NO WE WON"T TAKE IT ANYMORE. If you don't, rest assured that what you hold dear is next on their agenda.

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