Weakened by the recession and the malaise in the gambling industry, Red Hawk Casino is off to a slow start and is reducing employment.

Staffing at the Shingle Springs casino has been reduced to 1,500 full-time equivalents so far, the company that manages Red Hawk said Thursday. Red Hawk employed 1,750 full-time equivalents when it opened in December.

Casino revenue is down just about everywhere. Red Hawk became the third casino in the region to reveal job cuts this week, following Lincoln's Thunder Valley and Lake Tahoe's Horizon.

"We think it's primarily due to the economy," said Lyle Berman, chief executive of Red Hawk's management firm. Lakes Entertainment Inc., in an interview from his office in Minneapolis. He said most if not all of the staff cuts have come through attrition.

Citing lower-than-expected revenue from Red Hawk's 2,000 slot machines, Berman said more reductions in payroll are likely.

"We've trimmed it down substantially, and we're continually looking at ways to trim it down more," he said in a conference call with investment analysts to discuss Lakes' quarterly financial results.

Berman's comments provided the first-ever look at the health of Red Hawk, owned by the Shingle Spring Band of Miwok Indians. Lakes, which gets 30 percent of Red Hawk's profit, didn't reveal statistics but said the casino isn't doing as well as forecast. Red Hawk is one of three casinos it runs.

"We are getting as many people as we expected," Berman said. "We're bringing in lots of bodies. We're still not getting the gaming revenue."

Staffing reductions at Red Hawk represent a setback for El Dorado County, which sports an 11.5 percent unemployment rate and has viewed the $530 million casino as an economic jackpot. County officials say the casino can overcome any short-term bumps.

"They're committed to a long-term investment in this community," said Sam Driggers, the county's economic development coordinator. "We've got to ride this recession out."

He said the county is fielding proposals from developers interested in building hotels near the casino.

Despite the economic slowdown, the audience for gambling in California remains substantial, said economist Alan Meister, a gambling expert at Los Angeles consulting firm Analysis Group.

"When the economy recovers, I do expect there to be growth," he said.

In an interview, Berman said Lakes has begun altering the types of slot machines, including the amount of money it takes to play them. Slots account for about 80 percent of gambling revenue, he said.

He said Lakes is marketing more heavily in the Bay Area, hoping to drive up per-customer spending. "The further people come, the more they bring to gamble," he said.

Earlier this week, Thunder Valley said it laid off nearly 100 workers. The Horizon laid off 75 workers and announced it's halting table games.

Call The Bee's Dale Kasler at (916) 321-1066. Read his blog on the economy, Home Front, at www.sacbee.com/blogs.