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Brianzz
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Troubled NV casino closesThere's going to be alot of these stories........
The Oasis Casino in Mesquite is preparing to close some of its operations.
The former Peppermill, the oldest of Mesquite’s “Big Four” resorts, will be closing parts of the casino property effective today.
The biggest impact will come in the food service and table gaming arenas.
Charmaine’s, the Oasis Buffet, Tailgaterz, the Rock-It Lounge and Club Extreme will be closing.
The Denny’s restaurant, which is leased out by the casino to an independent company, is expected to remain open.
Sections of the gaming floor will also be closed, including all table gaming such as blackjack and poker.
However, the front section of the casino will remain open, and slot machines will still be available for play.
Also, in a surprise move, the hotel will remain open.
Hotel occupancy at the Oasis has been down to as low as 20-30% over the last few months, meaning 70-80% of the hotel space has at times been empty.
“The demand for rooms has dropped off significantly,” CEO Randy Black said on Monday morning.
“But if nobody is in those rooms, we can’t make it.”
The closure has been rumored ever since Black Gaming received authorization from one of its bondholders last month to shut down at least one of the company’s three resorts, which includes the Oasis, Virgin River, and CasaBlanca.
The Oasis was selected because it has become the biggest cash drain of the three.
“It’s the one suffering the most,” Black said.
“The Virgin River is coming back, with plenty of locals. The Casa is only 498 rooms.”
While he was unable to give a specific number of jobs to be lost as a result of the closure, layoffs will likely run in the hundreds.
“We’ll know more by the end of the week,” Black said.
When fully staffed, Black Gaming employs 2,148 people in Mesquite.
“In order to save 1,500 or 1,800 employees, we’ve got to do this.”
While the authorization from the bondholders has been characterized as “temporary,” Black offered no timetable for when or if the Oasis will resume full operations.
“We’ll curtail operations until we find the bottom,” Black said.
“This is not an easy decision.”
Black also dispelled ongoing rumors that one or all of the properties, including the former Mesquite Star, are up for sale.
“I don’t want to sell anything,” Black said, pointing out that if someone came in and bought out one of the properties, that casino would become a competitor which would eat into the Mesquite gaming market.
“If I let someone take the Star, it would take from all of us.”
With the problems affecting the entire gaming industry statewide, including the Tropicana’s bankruptcy in Las Vegas and the cash-flow problems which nearly threatened to close the Venetian and Palazzo resorts, it’s unlikely a buyer could easily be found for the struggling Black Gaming properties.
The overall gaming and hotel picture in Mesquite continues to be bleak.
According to stats from the Las Vegas Convention and Visitors Authority, gaming in Mesquite was off 27.9% in September alone compared to 2007, with year-to-date gaming revenues off by nearly 10%.
Mesquite’s visitor volumes were off an astounding 38.5% in September, and hotel occupancy for the city was 37.4% less than the same period in 2007.
However, Black continues to be optimistic about the future of Mesquite, and his resorts.
“I’m confident that we’ll be able to get through this.”
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