Oregon Public Broadcasting

The gambling industry was once considered recession proof.  But we’re in the midst of the deepest recession most of us have ever experienced. 

Even Northwest casino operators and state lottery managers have seen their luck change.  Correspondent Tom Banse reports.

Chinook Winds Casino in Lincoln City, Oregon.

It doesn’t look like we’re in a deep recession at the Chinook Winds tribal casino on the Oregon Coast.  On a pleasant Friday afternoon, parking spaces are scarce outside.  And inside, the large gaming floor is bustling. 

One casino visitor from Portland who gave her name only as Lee surmises some patrons must be trying to turn unemployment checks into full time pay.

Lee: “It may be that thing where people are taking their last bucks and hoping they’ll get lucky. You know, how psychologically even though you shouldn’t, you do because you’re hoping for a change of luck, so it could be that.”

Another gambler, Steve Graham, of Mt. Vernon, Washington says crowds may still come.  But he doubts the house is making out like it used to.

Steve Graham: “I know I’m a little more conscientious.  I know I used to drop a hundred on a blackjack table – if I double my money, I quit -- and now it’s fifty.  I just don’t spend the same amount of money on a lot of luxury things that I’d like to do.”

Tribal casinos now account for the majority of gambling jobs and receipts in the Northwest.  Indian-owned casinos typically don’t publicize financial results.  But interviews and anecdotal reports show the sector is by no means immune to the recession. 

Two casinos in southwest Oregon have laid off dozens of workers each.  Outside Spokane, Northern Quest Resort and Casino is cutting costs by making some jobs part time and suspending bonuses to managers. 

Assistant general manager Phil Haugen says there’s concern for tribal programs funded by casino profits, like the health center and daycare.

Phil Haugen: “We’re tightening our belt in as many areas as possible because you don’t know where it’s going to bottom out.”

The tribe that owns Haugen’s casino has postponed some elements of a planned expansion. 

The credit crunch and recession also forced the Shoshone-Bannock Tribes of Eastern Idaho to reevaluate a planned expansion of their main casino. 

Some tribes want to roll the dice no matter what.  The Lower Elwha Klallam tribe near Port Angeles is sticking with plans to open a slots parlor, its first, at the end of this month.

Just as tribal gaming is down overall, so are some state lotteries.

Jacque Coe: “A lot of folks think lotteries are recession-proof.  That is definitely not the case.”

Washington Lottery spokeswoman Jacque Coe says sales are down about five percent as consumers cut back on impulse purchases.

Jacque Coe: “When the economy is down, people just don’t seem to feel luckier. People are smart.  They recognize that the lottery is a game of chance.  It’s not a guaranteed thing. So if they have less money, they are going to spend it on things they can count on.”

Coe says because the Washington Lottery was conservative in its revenue projections, the downturn won’t affect the programs it supports for now.

The region’s biggest lottery is Oregon’s and it’s falling harder.  It’s affected not only by tight-fisted consumers, but also by put out smokers.  Oregon now has a statewide smoking ban in bars and taverns.  That’s cut patronage around video lottery terminals. 

To counter declining sales, Oregon has upped the ante on T.V. advertising.

Sound:[ Clip from TV ad] “You deserve a night of fun with video lottery....”

And finally, to Idaho where the lottery is an exception to the general trend.  A spokesman in Boise says the relatively small operation is holding its own this year.  It’s doing so by refreshing its offerings of scratch ticket games more often.