Casino Cannibalization Hits California
River Rock Casino Missed $3.5 Million Payment to Sonoma County

The casino cannibalization that is being reported as the cause of loss of more than 8,000 jobs this year in Atlantic City, is now coming to California.

The Native American-owned River Rock casino announced that their revenue has been cut in half due to competition with another casino recently opened nearby. This drop in revenue led to River Rock defaulting on an interest payment to investors and multi-million dollar payment owed to Sonoma County.

“Casino owners pitch the same get-rich-quick promises to local governments that they do to those who gamble inside the casino,” said Paul Seago of No Casinos. “The reality is revenue is rarely what is promised to local governments and the community is left to deal with the social and economic costs that follow casinos. Florida can and should do better than the empty promises of expanding gambling.”


 

press democrat

 

River Rock Woes Mount as Casino Revenue Cut in Half

By Clark Mason
Published: September 13, 2014

Losses at River Rock, Sonoma County’s first Indian casino, are even greater than anticipated, with revenues down 50 percent since the opening of Graton Resort and Casino next to Rohnert Park, according to tribal leaders.

The Dry Creek Rancheria Band of Pomo, which owns River Rock, blames competition from the bigger, glitzier casino to the south for cutting business in half at the older, more remote facility near Geyserville. Tribal leaders say the Graton casino has caused them to default on payments to investors and miss a $3.5 million payment to Sonoma County.

Read the full editorial here