Dry Creek Pomo tribe's Alexander Valley facility posts first quarterly gain in 3 years

For the first time in three years, River Rock Casino on Wednesday reported a small increase in its quarterly revenues.

Net revenues for the Dry Creek Pomo tribe's casino in Alexander Valley rose 1 percent to $31.8 million for the fourth quarter of 2009, compared to $31.4 million for the same period in 2008.

"We're actually very pleased with the fourth quarter revenue performances," acting CEO Joseph Callahan said in a conference call with investment analysts. "It represents the first time in the last 12 quarters that we were able to report a higher revenue number over the prior year period."

Net revenues for the entire year were down nearly 5 percent to $124.1 million, compared to $130.6 million for 2008.

In response to questions, Callahan noted that California still suffers from double-digit unemployment and "the economic picture really hasn't changed." He suggested the small increase in quarterly revenues was due partly to $5.5 million in recent renovations to the gaming facility, including new carpeting and chairs and the addition of "a couple of new food outlets."

"It looks like a brand new casino inside," he said. "We're starting to see more repeat visits and longer visits, as we anticipated."

Gaming facilities around California and the U.S. have seen their fortunes drop in the economic downturn.

Also Wednesday, the Cal Neva Lodge casino, owned briefly a half century ago by Frank Sinatra, closed its doors on Lake Tahoe's north shore at Crystal Bay.

Revenues at Lake Tahoe's casinos last year were roughly half of their 1992 total when adjusted for inflation, according to the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno.

Observers believe the recession and the competition from Indian gaming operations in California have helped drive the revenue decline.

At River Rock, the Dry Creek Pomo tribe in 2008 shelved plans for a $600 million expansion that would have included a permanent casino facility, a 255-room hotel and spa.

The tribe currently operates a casino with 1,212 slot and video poker machines, plus blackjack, poker and other table games. Along with its existing buffet restaurant, Callahan said, it recently added a "quick service," Asian-theme cafe and a 64-seat bar and grill.

Fourth-quarter distributions to the 1,000-member tribe totaled $3.3 million,

Callahan said the tribe and the casino operator have completed interviews for a new CEO, and if contract negotiations are successful, the hiring could come in a couple of weeks.

Earlier this month, the casino reported in a Securities and Exchange Commission filing that it had agreed to pay Callahan, River Rock's chief financial officer as well as acting CEO, a base salary of $250,000, with a discretionary annual bonus not to exceed 30 percent of salary, or $75,000.

This story includes information from the Associated Press. You can reach Staff Writer Robert Digitale at 521-5285 or robert.digitale@pressdemocrat.com.