Renovation, ad campaigns boost River Rock revenues

A year ago, River Rock Casino was feeling the pinch of recession, with fewer players trying their luck at its slot machines and card tables.

But Sonoma County's only Indian casino has bounced back, posting sales growth for three quarters in a row.

On Tuesday, River Rock reported $32.4 million in revenue for the quarter ending June 30, up more than 5 percent from the same period a year ago.

The casino's growth is being driven by aggressive promotion and a $5.5 million renovation. Gamblers are visiting more often and staying longer, said David Fendrick, the casino's CEO.

"We continue to be pleased with our results, especially during the current economic environment," he said.

River Rock is owned by the Dry Creek band of Pomo Indians. The casino overlooking Alexander Valley earned $7.9 million in the second quarter before distributions to the tribe, up from $6.5 million for same period last year.

The tribe took $3.4 million from the gaming business last quarter.

In December, the casino finished a major remodel that included upgraded slot machines, new slot chairs, two new dining venues, a performance venue, poker room and other amenities.

So far this year, the business has spent nearly $3 million on advertising, compared to about $2 million last year.

The casino is planning more changes to attract high-spending players, converting its poker room to a venue with high-limit slots and table games. The new gaming room, with its own bar and food service, will open late next month.

The 24-hour casino on Highway 128 has about 1,200 slot machines and 18 gaming tables. During the second quarter, the casino's net win — the difference between gaming wins and losses — averaged $256 per slot machine per day.

The Dry Creek tribe announced a major expansion in 2007, with a 267-room resort hotel, shops, restaurants, conference facilities and other attractions. But the project was shelved in 2008 when the tribe couldn't obtain financing, and there is no plan to build it "for the foreseeable future," according to a River Rock filing Monday with U.S. securities regulators.

Indian gaming was a $26.5 billion business in the U.S. in 2009, according to the National Indian Gaming Commission, the federal agency that regulates the industry.

Total revenue was down about 1 percent from 2008 as the recession kept players holding on to their wallets.

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