by David Chapman
Staff Writer
Among industries that are supposedly recession-proof businesses, a common myth is the gaming industry strikes it rich during down times as people look to cash in big while the chips are down.
For several gaming outlets and sources in Northeast Florida, the current recession has been more of a crap shoot than a jackpot.
“Historically, the idea that the gaming industry thrives in a recession has been true, but this one has been different,” said Gary Inks, marketing and promotions manager for Sun Cruz Casino. “The gaming industry really has felt it.”
While Sun Cruz boats are still heading out to international waters for passengers to play everything from slots and blackjack to poker and roulette, Inks said keeping passenger count up has been a challenge.
“We’re trying a lot of different things,” he said. “With the recession and fewer people, our marketing efforts have gone up with different promotions to try to attract people to the ship.”
Larger prized tournaments, pre-boarding game giveaways and the chance for card-carrying Player’s Club members — Sun Cruz Casino’s fee based membership program — to win $1 million each trip are some of the newer promotions the casino liner has introduced.
One positive of the recession for gaming venues like Sun Cruz, said Inks, is that people seem to be “getting their fix in locally” instead of traveling to places like Las Vegas and Atlantic City to spend their dollars.
Inks saw the writing on the wall last year, though, and knew gaming could be hit hard.
“I think you really started seeing it when the banks started to collapse,” he said, referring to the second half of 2008. “You saw a lot of hesitation across the gaming industry from officials and people themselves.”
The promotions and local attractiveness haven’t completely offset the losses, though, as the combination of industry and player hesitation Inks refers to has attributed to some gaming layoffs.
“We’ve scaled back a little, just like everyone else,” said Inks. “Unfortunately, we’re not exempt.”
Sun Cruz is looking toward the summer — typically the better months in terms of passenger count and spending — for a boost and while special events and holidays still draw plenty of people, the trends mimic those of the gaming tables.
“You have your good spikes, your good runs,” said Inks. “Even in light of the economy, overall we’re good.”
Another recognizable face in the Northeast Florida gaming industry is weathering the bad beats, too.
“When we look at the economic situation, it is tough,” said Michael Munz, vice president of The Dalton Agency and spokesperson for Jacksonville Greyhound Racing, Inc. “We’re no different than other entertainment options.”
Jacksonville Greyhound Racing, Inc. owns the Orange Park Kennel Club and accompanying poker room as well as The Best Bet poker room in St. Johns County.
Like Sun Cruz, Munz said the poker rooms are seeing days where attendance and numbers are better than others and promotions and tournaments are a couple ways to attract players.
“We’re making the effort to market effectively,” said Munz.
Greyhound racing at the Orange Park Kennel Club has seen more of a downturn — a trend Munz said is similar to that of other kennel clubs across the country. But like poker, efforts are being made to respond accordingly.
The Florida Lottery might be the most popular and profitable gaming and gambling outlet in Florida, but a decline in sales hasn’t been a surprise.
“We’re currently in a very challenging economy,” said Shelly Safford of the Florida Lottery communications department. “We realize both in good and bad times, dollars spent on Lottery are discretionary.”
Safford noted that while the Lottery used to be more recession-proof when all tickets — both scratch offs and Lottery — were $1, it too is feeling the pinch. Still, the allure of potential instant millions is enough to keep people playing and entertained.
“If we can provide the consumer with a good product, one they see as a value, entertaining or otherwise, there’s a good chance they spend some of that discretionary income on Lottery,” said Safford.
The introduction of Power Ball — a multi-state, mega-jackpot lottery game with minimum jackpots of $20 million — to Florida at the beginning of the year could lead to an increase in ticket sales after fluctuating sales, as Safford noted that the game’s launch was the most successful of any state.
Total Lottery sales over the last couple of years have shown a gradual decline, though. Excluding Duval and St. Johns counties, ticket sales in Florida averaged a little more than $317 million a month in 2008 — including several months in the $281 million to $287 million range in the fourth quarter — down from an average of close to $321 million a month in 2007, according to figures provided by Florida Lottery.
Those same figures show the sales trends in Duval and St. Johns counties mirror those of State levels for the most part, with monthly average sales of just more $20 million in 2008, down from more than $21 million in 2007.
In response, Safford said that marketing and promotions are adjusted depending on market strength to attract new customers, while some games themselves are tailored to certain economic factors.
One such game, “Summer Cash” from last year offered players the chance to win gas for life during a time when gas was creeping over $4 a gallon. Such a promotion is geared to “providing players something they really want to win.”
Consumer confidence and an economic turnaround will lead to more discretionary income for the gaming industry, but predicting when it will happen is a gamble in itself.
“We’d like to hope this year,” said Inks, “but who really knows?”
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