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A new casino defies the odds: it's drawing crowds

By EVELYN NIEVES Associated Press Writer 02/22/2009

http://www.mercurynews.com/breakingnews/ci_11761717       

PLACERVILLE, Calif.—On a Tuesday afternoon at the Red Hawk casino, slot machines ca-chinged nonstop, the cafe had a wait and cocktail waitresses in gold lame bounced from table to table like pinballs.

The recession was nowhere in sight.

Red Hawk, about 70 miles east of Sacramento near Placerville, seems to be defying the odds. In Las Vegas, Reno—all over—casinos are laying off employees and halting development. The $530 million Red Hawk, which opened in mid-December, is drawing large crowds every day.

But can its luck last in this economy?

Yes, says Red Hawk's general manager, Peter Fordham, a veteran casino executive.

"We believe there is business here that hasn't been touched," he said, notwithstanding several casinos within an hour's drive and Reno two hours away.

Like a bright, shiny penny on a city street, Red Hawk is grabbing attention because of its newness, casino experts said. In part, new casinos draw patrons who think they have better odds of winning at them, said Dennis Conrad, a Reno-based casino analyst. They also draw patrons interested in seeing the latest development, said Holly Thomsen, communication director for the American Gaming Association.

"Newness can be a factor just as if a new mall opens in your neighborhood, people want to check it out," Thomsen said.

That could mean Red Hawk's attraction will fade once the newness wears off. Nationwide, casino revenue figures paint a somber


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