State's mega-casinos face first voter test On The Ballot

California Indian casinos are betting they can take the next leap to ever larger and more lucrative gaming by adding slot machines and building new destination-resort hotels.

On the North Coast, tribes have drawn up designs for five-star accommodations, luxury spas and entertainment venues to complement new or expanded casinos.

In Southern California, the plans of four major tribes to create mega-

casinos surpassing those of Las Vegas have provoked a battle that

voters are being asked to settle in a statewide ballot election on Feb. 5.

The expansion plans of tribes around the state reflect the record $7.7 billion California's 58 Indian casinos raked in last year and their intent to capture even more revenue.

The explosive growth of Indian gaming in less than a decade has enabled tribal casinos to shed their bingo hall origins and tentlike structures.

Now, the Indian gaming halls that dot the North Coast from Sonoma County into Mendocino and Lake counties, and the far larger destination casinos in Southern California are on the verge of the next generation of development.

But, for the first time since Californians gave the green light to Indian gaming in 2000, voters will have a chance to express their views on the size and impact of Indian gambling with the February vote that could approve -- or reject -- plans for four tribes to more than double, and in some cases triple, their number of slot machines.

Last week, a Sacramento Superior Court judge rejected a tribal bid to block the statewide vote on the gambling agreements, the third such ruling this month.

The enlargement would add 17,000 slots to the 60,000 slots that already exist in California, in what critics describe as one of the largest expansions of casino gambling in U.S. history.

Analysts believe the market is far from saturated and that building elaborate casino complexes is the way for tribes to capture more patrons.

"These tribes building hotels and conference centers and expanding their gaming facilities aren't doing this in a vacuum. They do significant market research to justify the significant expense it takes to build these facilities," said Doug Elmets, who works in public relations with more than a half-dozen California tribes.

Some gambling watchdogs believe that if voters approve super-sized casinos for the Southern California tribes, it will pave the way for the Federated Indians of Graton Rancheria to obtain more slot machines at their proposed Rohnert Park casino site, potentially making it tougher for other tribes in the region to compete.

However, if voters reject the Southern California gaming expansion, the compacts could "become much more stringent," said Cheryl Schmit, director of Stand Up for California. The organization monitors tribal gaming and has sided with opponents of the four compacts. The ballot referendum was launched by a coalition of two horse-racing tracks, two rival tribes and a union.

Competition is the overriding factor in the push for ever bigger and more elaborate casinos. To continue to be successful and draw from a wider area, tribal casinos "presumably need a hotel, they need restaurants, potentially an entertainment venue," Elmets said. "If it's adjacent to a golf course, that's particularly attractive."

"Rooms have to be nice for people to go out of their way," said Bill Thompson, a gambling analyst and professor at the University of Nevada in Las Vegas. "They need nice restaurants and shows."

The combination he said "allows them to become weekend destinations for Californians. It allows them to capture people for three days. That's important."

The Southland casinos typically are in a desert surrounding, distinct from the wine and redwood country experience Northern California tribes want to offer.

Sonoma County

The Dry Creek Rancheria, which has operated River Rock Casino near Geyserville since it opened in 2002, is hoping to create a destination getaway that could break ground sometime next year.

The tribe is planning a

$300 million expansion to build a Tuscan-style, terraced, luxury resort hotel and permanent gambling hall. The project calls for 260 guest rooms, a cabaret, meeting rooms, pool, spa, restaurants, gardens and waterfalls.

"By having different amenities besides a casino and a restaurant, by having meeting rooms and a wedding chapel and high-end space, you can appeal to a different customer," said Dave Hyams, a spokesman for the Dry Creek Band of Pomo.

"You can really expand your base by offering other opportunities to come and enjoy yourself," he said.

The tribe has not yet secured financing for the project, but Hyams expressed confidence that it will be obtained in the coming year.

About 10 miles north of River Rock, the Cloverdale Rancheria is pursuing plans for a casino. The recent acquisition of 25 acres next to Highway 101 by a group linked to the group has fueled speculation the project is moving forward.

The Graton Rancheria's planned $450 million casino-hotel complex at the western edge of Rohnert Park would be the biggest in Northern California. Touted as a "world-class" destination resort, tribal leaders say entertainment would include Broadway-level plays and musicals, in addition to some of the popular entertainers that play Vegas.

The project has been delayed for more than three years by a federal environmental review that is not expected to be final until March, according to a spokesman for the National Indian Gaming Commission.

And tribal leaders expect the environmental report will be challenged in court by casino opponents, further delaying the project.

The Graton Rancheria still needs to have the land for its casino taken into federal trust. It must also obtain a compact from the governor, the legal agreement that spells out how many slots are allowed along with a number of other conditions for gaming.

The Rohnert Park casino would become the closest to the lucrative Bay Area market to offer Las Vegas-style slots.

Smaller tribes with more isolated casino sites in Mendocino and Lake counties may never have the demand for a large number of slots, or the financial backing for a ritzy destination-resort. But at a minimum they want to provide some type of lodging, along with a restaurant and entertainment.

Mendocino County

Four tribal casinos are located in Redwood Valley, Hopland, Willits and Laytonville.

The Coyote Valley Band of Pomo Indians last month broke ground on a tenfold expansion of its Shodakai Casino in Redwood Valley north of Ukiah. The new gaming facility, lounge and three restaurants could open next fall.

The tribe plans to follow up with a four-story hotel, entertainment hall and parking garage.

"They have ambitious plans. They're not the only one looking to expansion," said Mendocino County supervisor Mike Delbar.

When casinos first sprang up "there was a lot of concern," he said, especially because tribal sovereignty limited the ability of local officials to do anything about them. But now, "we've adjusted to the facilities, having lived with them for awhile."

The willingness of tribes to put up money to offset their casino impacts has helped ease tensions.

As part of its expansion, the Coyote Valley tribe struck an agreement with Mendocino County officials worth approximately $1 million a year over the next two decades. The money will go toward road and water improvements, law enforcement and problem gambling programs.

Lake County

Lake County has three operational casinos and at least two being planned, one near Upper Lake and another on the Elem Indian Colony along Clear Lake's east shore.

The one close to Upper Lake, proposed by the Habematolel Pomo, appears to be further along, although the tribe still needs a compact and federal approval for the project. The tribe recently struck an agreement with county officials to offset some of the impacts when the casino is built.

Tribal chairwoman Carmella Icay-Johnson said Luna Entertainment, the tribe's investment partner, has done surveys that show the small casino and hotel will be commercially viable even though it would be only two miles from the existing Robinson Rancheria Resort & Casino.

She said the casino offers a way for low-income tribal members to pay for housing, employment training and education programs.

"It improves the lives not just of our people, but the community," she said.

Lake County Administrator Kelly Cox said the county needs more lodging and the Indian casinos help provide it. The county has agreements with some of the tribes who have agreed to subsidize marketing campaigns to draw tourists to Lake County.

Cox said there has been no detailed study of the economic contributions of Indian casinos to Lake County. A survey of county department heads, he said, produced mixed results, but found positives associated with the casinos, such as creating jobs and decreasing the welfare rolls.

"This is a pretty small county -- about 63,000 population," Cox said. "We think there is a limit to the number of casinos the community can sustain. I think we must be getting there."

You can reach Staff Writer Clark Mason at 521-5214 or clark.mason@pressdemocrat.com