Casino towns ready for the New Year
By Linda Jones
Headline news in 2010 from Gilpin County casinos was mostly gloomy, with a few bright spots. Let’s begin with the good memories: Johnny Z’s opened in Central City, the entrance from the Central City Parkway to the “Big T” parking lot was relocated and is 100 percent more efficient. The lot received a sorely needed paving and the Visitor’s Center in Central City was relocated to the historic Wells Fargo building, now city-owned.
Down the hill in Black Hawk, the Bobtail Cornerstore opened, the Lace House was repainted in striking colors and two-year project of widening CH 119 to four lanes below Black Hawk began.
Unfortunately, two casino developments created gloomy news in 2010. Fortune Valley was sold for a song and Bullwhackers Casino closed the Bullpen and their restaurant. The most noticeable trend in 2010 was the steady stream of general managers departing.
The casino business suffered along with other businesses, and when businesses don’t reach their expected profit level, heads will roll. Nearly every casino general manager in Black Hawk “hit the road” in 2010, including the top men at Bullwhackers, Ameristar, Mardi Gras, Riviera and others. The top man at the Red Dolly left, but his walk was short – up the hill to Johnny Z’s. We will miss these fine men whom we grew to know and respect.
Surprisingly, while this shuffling at the top was happening, Black Hawk’s numbers were growing. The expected growth from the passage of Amendment 50 was only realized in Black Hawk; the other two gaming communities stayed flat. Black Hawk experienced 4 percent growth in 2010, the same amount Central City lost. The “City of Mills” now earns 72 percent of Colorado’s total casino income. Despite that fact, most of the town’s parent companies are in bankruptcy protection.
Yet Central City casinos, even with their lowered income, kept their top managers AND added a new casino – Johnny Z’s. When Fortune Valley was sold at auction, Luna Entertainment, owner of the Red Dolly, picked up the property at the stalking horse price. Luna Entertainment officially takes command this month and will begin remodeling Central City’s largest casino.
One bit of positive news came from the Ameristar Casino Resort Spa. With its new hotel, 1,600 slots and an enlarged casino, the complex at the northeast corner of Black Hawk has succeeded in drawing small conventions and business meetings. The 536-room luxury hotel was completed in late 2009 for $235 million. The Ameristar is arguably the most Vegas of the large casinos and consistently has large “bad beat” payouts at its poker tables.
With a mixed bag of successful and struggling casinos, the town council is poised to attract a more varied mix of visitors. The city purchased the Lilly Belle Casino complex on Gregory Street, vacant for years, and intends to convert it into retail shops in the future. Together the two towns can complement each other to create a total destination area, but Black Hawk needs the historic and entertainment attractions of Central City to present a complete package for visitors.
But cooperation between the towns is at an all-time low. The two towns had cooperated in creating five Inter-Governmental Agreements. All are now history. Black Hawk has ended all five. The IGAs were created to assist their financially strapped sister community. The cut gamblers will notice was the severing of the joint shuttle service, which in 2010 carried approximately 650,000 riders, one-third of them originating or terminating in Central City. Most observers believe that the health of the two communities depends on cooperation, not competition. Black Hawk will serve its city with the Black Hawk Tramway and Central City will service its community and Black Hawk with its new shuttle service, the Central City Free Ride.
Stay tuned in 2011 to see what the New Year will bring. Thanks to our loyal advertisers and readers, the Gambler is geared up to be its best in 2011.
