PALA INDIAN RESERVATION ---- A second local casino is moving forward with a major expansion, putting chips on the table at a time when a wobbly economy is prompting other casinos to hedge their bets.

The expansion includes Pala Casino Spa and Resort's first poker room, two new restaurants and an expanded buffet. At 60,000 square feet, it represents growth of 25 percent from the previous 230,000 square feet. A new parking garage adds 400 spaces at the casino, which is on Highway 76 four miles east of Interstate 15.

The Pala Band of Mission Indians, which owns the casino, began major construction in December and expects to open the new areas by the end of May, said casino chief executive Bill Bembenek. It follows a new wing that opened in December at Valley View Casino, 15 miles to the south in Valley Center.

Valley View was the first major casino expansion since mid-2007, when the Pechanga tribe opened a new high-roller salon at its casino near Temecula. Southern California's weakening economy prompted several casinos to put the brakes on hiring and then to begin laying off workers last year.

A spokeswoman for Valley View said the weak economy has forced the casino to delay the opening of an attached hotel from early 2010 into 2011.

Pechanga's layoffs of nearly 400 of its 4,800 workers late last year has been the largest. The casino has added just a fraction of the 5,500 gambling machines that voters approved in February 2008. It also shuttered its Silk nightclub, though tribal officials attributed the closure to safety concerns rather than the recession.

Pala, too, has cut jobs, but by letting positions remain empty after employees quit or retire. Bembenek said Pala's work force shrank from 2,100 in late 2007 to about 1,780 in recent weeks. The new poker room and restaurants will bring it back up by 120 to 150 employees, Bembenek said.

Valley View has added 40 positions at a nonsmoking wing that opened in December and could add an additional 23 as it builds up its base of regulars, a human-resources executive said.

San Diego County casinos cut about 600 jobs, or 7 percent of their total, in the course of 2008, according to state data. Those numbers don't include employees at attached hotels.

The Palas agreed to pay San Diego County $38 million for improvements to Highway 76, including the winding, five-male stretch that connects the casino to Interstate 15. State law requires tribes and local governments to negotiate such payments to offset the effects of increased traffic and any increased crime.

Casino officials estimate the costs of the expansion at about $100 million, financed in part by borrowing.

"We're facing the same challenges as everyone else," Bembenek said in a reference to the economy. "The tribe understands that you have to invest in your business."

Bembenek said the poker room will include 15 tables. The expansion will also include a larger high-limits room with its own kitchen and lounge.

Contact staff writer Chris Bagley at (760) 740-5444 or cbagley@nctimes.com. Read his blogs at http://bizblogs.nctimes.com.

See also:

FALLBROOK: Work on 76 east of I-15 on schedule to wrap up by September (January 29, 2009)

CASINOS: Industry continues to shed jobs (January 19, 2009)

CASIONS: Recent expansion bets on nonsmoking trend (January 11, 2009)

CASINOS: Diary of a rookie gambler (August 23, 2008)

REGION: Casinos' expansions may be ebbing (July 23, 2008

REGION: Slot-machine bill clears committee (April 25, 2008)

County OKs $38-plus million Pala casino deal