Spotlight on Oklahoma Tribes

Transcription

1 Spotlight on Oklahoma Tribes This month, we spoke to nine tribal leaders in Oklahoma about the development of their gaming operations, what their winning formulas have been for success, the challenges they have encountered along the way, and where they see opportunity for economic development in the future. With the State of Oklahoma representing one of the most competitive gaming markets in the country, their strategies and insights prove especially relevant and informative. Here is what they had to say... Bill Anoatubby, Governor Chickasaw Nation Winstar World Casino and Resort in Thackerville, OK and over 20 additional gaming properties DEVELOPMENT: While we have more than 20 gaming properties today, growth and development of WinStar World Casino and Resort illustrates the growth of our gaming properties as a whole. In 1991, we opened Touso Ishto, which is Chickasaw for Big Money, Gaming Center on Interstate 35 near the Oklahoma border with Texas. Due in part to its proximity Bill Anoatubby to the Dallas Fort Worth market, it was an immediate success. Continued growth of the operation and careful consideration of market opportunities led to our decision to open the 190,000 sq. ft. WinStar World Casino at that same location in Today, it is one of the largest casinos in the world, and a true resort destination with more than 500,000 sq. ft. of gaming space; 1,395 hotel rooms; two 18-hole golf courses; a concert venue; more than a dozen restaurants; RV park; and swimming pools, among other amenities. WINNING FORMULA: While we were blessed with an excellent location for WinStar, strategic planning and effective implementation have also been very important to the success of our gaming operations and all of our businesses. We believe it is important to reinvest in our established business operations to maximize their growth potential. Our leadership team is continuously searching for opportunities to expand existing operations and develop new businesses. We have been extremely successful in those efforts. Our management teams understand the importance of quality and customer service, and continually strive to optimize the patron s overall experience. We currently operate more than 20 casinos and gaming centers, which include WinStar World Casino, Riverwind Casino and Newcastle Casino, as well as Remington Park and Lone Star Park. CHALLENGES: Gaming is one of many entertainment options available to the public, so competition with other gaming operations and other entertainment venues is always a challenge. Therefore, we believe it is important to offer new and innovative alternatives and maintain our focus on consistently exceeding the expectations of our patrons. LOOKING AHEAD: With regard to gaming operations, we established a separate business, Global Gaming Solutions, to operate gaming businesses outside our tribal boundaries in order to protect our sovereign status. We purchased Remington Park in Oklahoma City and bought a substantial ownership interest in Lone Star Park, which are both located outside our jurisdictional area, through Global Gaming Solutions. Since we purchased Remington Park, which combines horse racing and casino operations, we have renovated the facility and improved the casino operation to make the business considerably more profitable. Lone Star Park in Grand Prairie, Texas, was primarily a horse racing facility. We renovated the facility and added a number of entertainment opportunities, including a restaurant, off-track betting facility and concert venue. All of these improvements have enabled us to increase profitability. We continue to explore other gaming opportunities outside our jurisdictional boundaries. Other notable business diversification initiatives include Bank2 and Chickasaw Nation Industries. Bank2, which is wholly owned by the Chickasaw Nation, has grown steadily since it was first opened in Chickasaw Nation Industries is a federal chartered corporation we established in 1996 with an investment of $50,000. It currently serves as a holding company for more than a dozen businesses, which generate more than $350 million in annual revenues. 20 Indian Gaming July 2018

2 Bill John Baker, Principal Chief Cherokee Nation Hard Rock Hotel & Casino Tulsa in Catoosa, OK and nine additional gaming properties DEVELOPMENT: In the 1990s, the Cherokee Nation Tribal Council voted to pursue gaming as an economic development tool in northeast Oklahoma. It was seen as a way for our tribe to create a consistent revenue stream and strive towards self-sufficiency. Over the years, we have transformed our offerings from bingo halls to state-of-the-art entertainment Bill John Baker resorts that rival any in the industry. Cherokee Nation Entertainment is the gaming and hospitality company of the Cherokee Nation. The company operates Hard Rock Hotel & Casino Tulsa and nine other Cherokee Casinos, including a horse racing track; three resort hotels; three golf courses; and other retail operations. These properties provide thousands of jobs for Cherokee Nation citizens and give us the opportunity to invest in services for our people, infrastructure in our communities and be a force in the regional economy. WINNING FORMULA: Cherokees are known for being hospitable and we try to leverage that characteristic in our entertainment endeavors. As we continue to create good jobs, and fill them with Cherokee Nation citizens, we are enhancing our gaming and hospitality properties. It ensures our guests are getting first-class service. When you combine that level of service with our entertainment and amenities, it s a winning strategy. CHALLENGES: Gaming and hospitality has created opportunity to design an economy that will build a strong foundation for future generations of Cherokees. Our gaming success fuels education, housing and health care programs for the largest tribal government in America. Our most important job is to stay ahead of the changes in a constantly evolving industry. Navigating the rapid growth and the game-changing developments that come with that level of expansion remains our biggest challenge. However, we strive to be thought leaders in our other industries as well, where we have diversified our gaming success into areas like federal contracting and advanced manufacturing. As we successfully position our businesses, we have created an economy where Cherokees can work close to home, which keeps families together, and our language and culture alive. LOOKING AHEAD: We leverage our gaming and hospitality expertise to diversify our businesses. Today, we operate more than 30 businesses and are doing work around the globe. We are a driver in the regional economy, partnering with local, regional and state economic development teams to attract national brands to northeast Oklahoma. This brings thousands of jobs to our region, which creates career opportunities for Cherokee families close to home. The Cherokee Nation and its businesses have a $2.03 billion economic impact on the State of Oklahoma and employ more than 11,000 people. John L. Berrey, Chairman Quapaw Tribe Downstream Casino Resort and Quapaw Casino in Quapaw, OK DEVELOPMENT: Downstream Casino Resort has evolved tremendously since we first opened on July 4, We originally had a casino, restaurants, and the shell of our hotel, but the rooms were not completed until November of that year. Since then, there has been quite a bit of transition. We have added a pavilion that holds several thousand people for indoor John L. Berrey events; another hotel tower with beautiful rooms; and a farm to table program for our restaurants. We have greenhouses, roast our own coffee, harvest honey from our own bees, and have our own cattle herd, which generates Black Angus, non-hormonal and non-antibiotic beef. The Quapaw Tribe has also developed its own USDA beef and bison plant, which allows us to process our beef, and probably makes for the best steak in any casino in the United States. WINNING FORMULA: The tribe's success has come from how we treat people. The Quapaw Tribe is family oriented we are very caring about the people that work for us. We have a daycare and a clinic on site, not only for our employees, but also for our employees' families. A lot of the calculus in everything we do is, how does it make the life of our employees and our tribal members better? That's really been the winning formula for us. CHALLENGES: Gaming is constantly changing. The demographics of players are slowly changing. Players are getting younger and want more interactive play. Their food choices and needs are also different. We are constantly checking the barometer of where things are going, and trying to evolve to meet the 22 Indian Gaming July 2018

3 market's needs. We have an excellent team that forecasts and is constantly looking at the ever-changing market around us. LOOKING AHEAD: We are very much involved in an Arkansas ballot initiative that we're pushing for in November. It is a commercial venture that would be run by Native Americans. It s not a trust land type gaming operation, so we would bring to it the same type of sensitivities, leadership and management. We've cleared the Attorney General and are in the signature gathering stage. We believe we are going to get the required number of signatures, and what this would do is change the dynamic of the State of Arkansas the homeland of the Quapaw Tribe. And we believe that we're going to get there with a new facility just south of Little Rock. If you go back and look at the Indian Gaming Regulatory Act (IGRA), we pretty much meet the goals and the identity of IGRA. We have taken the revenues from gaming and have grown our nation. We have diversified our economy, created educational opportunities and provided medical insurance for our members. The intention of IGRA is very much reflected in the trajectory of the Quapaw Tribe since we built Downstream Casino Resort. Edwina Butler-Wolfe, Governor Absentee Shawnee Tribe of Oklahoma Thunderbird Casino Norman and Thunderbird Casino Shawnee, OK DEVELOPMENT: Like most gaming in Oklahoma, Thunderbird Entertainment Center (TEC) developed from a bingo operation and transformed into a Las Vegas style casino operation over the years. The main difference is that at one time TEC was the only casino in the area and now there are six other properties that we directly compete with. TEC went from being the only choice for gamblers in the area to be being just one out of six. At one time, a large number of charter buses full of gamblers would come from Texas, Louisiana, and other surrounding states to play. Because of gaming developments in or around those states, those gamblers are choosing to stay closer to home. All of these changes have pushed TEC to evolve into a more lean and efficient gaming operation. WINNING FORMULA: The winning formula for TEC has been, personal customer service plus modern gaming and focus, equals success. Success starts with customer service, but at Thunderbird, we take it a step further by defining our customer service as personal. We get to know our clientele and learn what their wants and needs are. We design our gaming offerings accordingly. We strive to find the latest games and titles that our customers want to play. Finally, we keep focus on our purpose to operate a successful business to enhance the lives of our customers, team members and ultimately the Absentee Shawnee tribal people. C H A L L E N G E S : T E C s challenges include: gaming competition, rural location and the changing entertainment environment. Gaming competition has increased in and around the country, but particularly in this region. There might be more games in our area per capita than anywhere else in the country. Our rural location presents Edwina Butler-Wolfe challenges as well. We have a smaller customer pool to draw from, which creates challenges in attracting and keeping players. Our location also means we have a smaller potential employee pool to draw from, which increases costs with regard to payroll, training and recruiting. Finally, because of the changing entertainment environment, the casino style gaming industry faces increased challenges competing for the entertainment dollars available to most households. The next generation of potential gamblers are turning to other ways to spend on entertainment, which includes alternatives such as e-sports and remote gaming. LOOKING AHEAD: Changes to the law in Oklahoma, adding modern attractions and developing our gaming properties are all ways in which we plan to develop economically. Recently, the State of Oklahoma approved measures that legalize ball and dice games in the state. The change will allow our casinos to be more competitive on a greater scale than before, and potentially draw more clientele. We have also been exploring ways to develop the next generation of gamers by exploring other forms of entertainment like e-sports. We recently hosted an e-sports tournament where gamers from around the region participated. Finally, we are developing plans to create more gravity around or current gaming facilities. Projects such as building hotels, RV parks and entertainment venues create gravity for a property and hold gamers on property longer, which generally generates greater revenues. James R. Floyd, Principal Chief Muscogee (Creek) Nation River Spirit Casino Resort in Tulsa, OK (River Spirit Casino and Margaritaville Casino) and eight additional gaming properties plus two travel plazas DEVELOPMENT: Muscogee (Creek) Nation gaming operations started in 1984 like many tribes across the country, as traditional bingo operations at tribal community centers. At some locations, this evolved into high stakes mega bingo, with 24 Indian Gaming July 2018

4 prizes approaching $1 million. Creek Nation Bingo Tulsa was at the forefront of high stakes bingo. Following high stakes bingo was the operation of Class II electronic gaming devices at expanded bingo locations. In 2004, Oklahoma approved Class III gaming and compacts with tribes. The Muscogee (Creek) Nation entered into a James R. Floyd compact in 2005, which resulted in Class III gaming devices and live table games becoming operational at gaming locations. Muscogee (Creek) Nation gaming operations have now evolved to currently include full-service resort operations with luxury hotel rooms, a theatre/showroom, spa, multiple food and beverage venues, convention facilities and include international brands such as Margaritaville and Ruth s Chris Steakhouse. Operations currently include 10 casinos and two travel plazas with gaming that offers over 6,000 electronic gaming devices plus live table games. Operations also include 17 restaurant and bar venues. We currently employ over 2,200 team members. Our flagship property, River Spirit Casino Resort in Tulsa, OK, just completed a $365 million Phase II expansion last year and is experiencing tremendous success. This is an exceptional facility that has won over 40 industry and people s choice awards since opening, including AAA s 4 diamond rating, and was named Uber s #1 destination in the State of Oklahoma in Within the first nine months of opening, River Spirit Casino resort had overnight hotel guests from all 50 states as well as from a number of foreign countries. WINNING FORMULA: Number one is customer service, which we constantly monitor both internally and externally and train team members to stress at all times. We offer our guests a clean, well-maintained and comfortable environment. We offer guests a wide variety of gaming devices and table games with constant updating, as well as a wide variety of non-gaming amenities. We treat our team members fairly with exceptional compensation and benefits. Human resources are the key driver to exceptional customer service our main goal. CHALLENGES: Early challenges were determining which gaming devices were legal to offer as Class II. This took years to sort out and was not resolved until the approval of Class III compacts. Our gaming operations originated as nine separate businesses, each operated independently. A major challenge was transitioning all properties into a single operation under one organization for consistency and maintaining standards. A central support staff evolved to undertake this transition. Access to capital for expansion was a challenge. We had to expand in phases and prove ourselves to lenders that we could manage project costs, manage new operations and cover debt service while still providing significant cash flow to the Nation. We have proven ourselves and now have multiple financing sources. Employment is always a challenge, especially with entry level and 3rd shift positions. We have robust recruitment programs and target Native American employees. Enrolled tribal citizens currently make up 50% of our total workforce. LOOKING AHEAD: We are currently in the design and pre-construction phases of expansions and remodels for a number of our existing facilities. River Spirit Casino Resort has experienced hotel occupancy levels exceeding 80%, so we are looking into opportunities for expansion of rooms and convention space at that location or on nearby land owned by the Nation. The Nation recently acquired 28 acres of property adjacent to River Spirit Casino Resort and we are in the early process of mixed-use commercial development of this land. We are in the process of developing additional travel plazas with gaming devices ( gasinos ), as well as other gaming locations on lands within our jurisdiction. We are always exploring expansions and new opportunities that will benefit the Muscogee (Creek) Nation. Billy Friend, Chief Wyandotte Nation River Bend Casino & Hotel and Lucky Turtle Casino in Wyandotte, OK; 7th Street Casino in Kansas City, KS DEVELOPMENT: We first entered the casino business in 2004 and started with a small casino that was attached to our travel center called the Lucky Turtle Casino. We started with about 50 games and in about three to six months' time, outgrew that space. We expanded and put in another 60 games for a total of approximately 110 games. In 2007, we built our Billy Friend first standalone property, called the Wyandotte Nation Casino, which opened with a little over 600 games and a restaurant. During that time, we were in litigation with the State of Kansas to open up a property in downtown Kansas City, KS 26 Indian Gaming July 2018

5 in Wyandotte County. It's a lengthy story, but under the Indian Gaming Regulatory Act (IGRA), we finally won in court and met the requirements [to open a property]. In order to have off-reservation gaming, the land either has to be within your historical reservation boundaries, or has to be part of the land claim settlement. We won on the land claim settlement issue, and so we opened up our third casino in 2008 called 7th Street Casino, in Kansas City, KS. WINNING FORMULA: We are located in Ottawa County, OK, where there are nine federally recognized tribes located. We have about 39,000 people in the county and there are 13 casinos to choose from, so it's a very competitive environment. The key to our success has been providing excellent customer service. Our motto is, Treat Everybody Like a VIP. I tell everyone, treat everybody like a somebody, because nobody wants to be treated like a nobody. What sets us apart in this competitive environment is a great product and great customer service. CHALLENGES: We have two different scenarios one in Kansas and one in Oklahoma. With Seventh Street Casino, of course, the challenges were legal. We knew we had the right to game our tribe was located in what is now Kansas City, KS at that time it was called Wyandotte City. Our tribe was there from 1843 to We still have our cemetery there. We felt we had the right to game, but of course, we got caught up in the politics of it and had about 12 years of legal battles in federal court. We won every court case, and eventually won the right to game and opened that casino in At our locations in Oklahoma, the challenges are a little different, simply because there are nine federally recognized tribes in a very small county. Every time a casino opens up, the pie is sliced a little bit thinner. The challenges have been competition and trying to set ourselves apart in some way to develop a niche that nobody else has. You have to become very creative to do that. LOOKING AHEAD: We own ten and a half acres in Park City, KS, which is on the north side of Wichita. We submitted an application to have that land taken into trust, and it has been in Washington D.C. since January of We are once again awaiting a decision to get that land taken into trust. We feel it's not a matter of if but a matter of when we have the opportunity to game in the Wichita market. It's a great market opportunity for us there. With the Supreme Court s recent ruling regarding sports betting, we are looking to see how to get into that market. It's still a little cloudy and the dust hasn't quite settled to see which direction the tribes will go whether we form our own conglomeration of some kind, or we joint venture with a larger group. We don t know yet how it s going to play out, but we're looking at the sports book. We re also still looking at Internet gaming and the question of how to reach millennials in the next several years. Ryan K. Morrow, Mekko Thlopthlocco Tribal Town Golden Pony Casino in Okemah, OK DEVELOPMENT: Our casino property has evolved by leaps and bounds from where it started. The building that currently houses our gaming facility was once used as a Tribal Community Building for many years. Later the building was remodeled and used as a bingo facility. Today, after a few minor renovations, our casino is providing revenue to our tribe and Ryan K. Morrow tribal members. We have been blessed with a great team at our current casino property, and our casino has provided the tribe with revenue to help allow us to grow. WINNING FORMULA: I don t think anyone can have the perfect formula to anything in life. The winning formula in tribal gaming is no different. Casino revenue can be affected by many factors, including but not limited to the economy, gas prices, weather, and so on. The key to being successful is to have the perfect team in place. Everyone at all levels must contribute and help toward perfection. CHALLENGES: Moving forward has been what I have been preaching since I have held office. Tribes across the board face a lot of the same issues, whether it is internal political issues, various tribal factions, or just poor leadership. One of the problems that I have seen is simply education. With a gaming facility the tribe is subject to audits, audits and more audits. We even pay someone to audit our audits. My point is very simple, tribal members are always going to ask, How s the money being spent? We need someone to come in and do an audit on how the money is being spent. It s my job as a tribal leader to inform our members as to what our revenue is going toward. A lot of our issues have been due to lack of education, in our earlier casino days. We all go through some growing pains, but even with success come a number of other problems. I like to refer to those problems as C.O.B.S. the cost of being successful. LOOKING AHEAD: We have talked about taking the next step, which is expanding our current facility. We are currently working on new ventures outside of gaming as well. We are a tribe on the move and I am blessed to have this opportunity to help our tribe grow. 28 Indian Gaming July 2018

6 Terri Parton, President Wichita and Affiliated Tribes Sugar Creek Casino in Hinton, OK DEVELOPMENT: Due to our unique situation with regard to land, it wasn t until 2008 that we opened our first and only casino located in Hinton, OK. Our casino was originally an old car dealership. We began with about 300 games in the first year and have now grown to 694 games. When we first opened, we only used half of the space and then later added an event Terri Parton center to the other half of the building. Several renovations have followed over the years, and eventually we built a brand new event center in 2014 that can seat approximately 1,200 people. We are currently going through a bid process for renovations to our café and a master planning process for the remaining land in that location. WINNING FORMULA: Our winning formula has been location (being directly off I-40), management, staff, our Gaming Commission, attorneys and leadership from our Wichita Executive Committee. It takes a joint effort to move forward successfully. We had issues with the original management and then hired Glen Coleman in July of 2009, and he helped make a lot of changes that turned our profitability around. CHALLENGES: We purchased land in 2006, which was the first parcel of land belonging to the Wichita Tribe, and in 2008 opened our casino after attempts to open a Smoke Shop there. The Smoke Shop was later added. We only have 5.06 acres of land in trust where our casino currently sits, which has hindered our ability to expand the casino. We can do other economic development, but it makes it difficult to build a new casino. We have had issues with getting other trust applications for the parking lot and surrounding land approved while other tribes on the other side of the state have been more successful in getting trust applications approved. Selection of poor management was one of the first issues we encountered, so we brought in a new manager in Trying to make use out of an old car dealership has brought other issues over the years. We have a unique land situation where we share jointly held land in our former reservation area with two other tribes, and that has hindered our economic growth and ability to expand gaming over many years. We work hard to do what we can with what we have. LOOKING AHEAD: We purchased land in 2014 in Hinton and Hydro, OK. Besides the 5.06 acreage that our casino sits on and the couple of acres for the parking lot, we have almost 140 acres in those locations combined with most of that property located in Hinton that is available for economic development. We hope to expand economic opportunities in those locations soon. There is a demand for housing in the Hinton area and a lot of possibilities for other economic development endeavors. Glenna J. Wallace, Chief Eastern Shawnee Tribe of Oklahoma Indigo Sky Casino & Resort and Bordertown Casino & Arena in Wyandotte, OK DEVELOPMENT: We are located in Ottawa County, OK, which is the only area in the United States that has nine federally recognized tribes in one small county. The county s entire population is approximately 39,000, and yet there are 15 casinos within miles. Because of this, we are often thinking of what others are doing and how we can be different Glenna J. Wallace how we can be better. We first entered gaming in 1984, and at the time, all that was available to us for gaming was bingo and pull-tabs, which is how we started. We began in a building that had been built for something else, which we remodeled and retrofitted. We are a small tribe with just under 3,500 members, and have never had professional management [for our casino and bingo properties]. Instead, we have always taken the approach that we want to hire our own tribal people and train them. We ultimately entered into the casino business (non-bingo) in 2003, when we built our first casino, Bordertown, which was the largest casino at that time. We are restricted, as any tribe is, to build on land that is in trust. We were on 58 acres in a floodplain, right next to Seneca, MO. Guests would have to leave Oklahoma, go into Missouri and come back into Oklahoma to get to our facility. We soon came to the conclusion that we needed to be able to move out to a major highway, which is just about two miles from us. We purchased property in our old reservation area, and in 2009, we were able to get it into trust. We put in a brand new casino and hotel called Indigo Sky. We built it with 117 hotel rooms, and it has done very well. This past year, we doubled the size of the hotel, so it is now right at 250 rooms. The property features an outdoor swimming pool, a marvelous 30 Indian Gaming July 2018

7 gourmet restaurant, as well as off-track betting, table games and slots. With the opening of Indigo Sky, we next discussed how we could make Bordertown different and unique. We decided it should be refreshed with somewhat of a Mickey Gilley flare with bingo, a large dance floor, bar and a bucking bull. We also decided to have indoor bull riding on weekends. We have owners of bulls who come from about 20 different states and they have to have a place to stay, so they come to Indigo Sky. They also have a place to eat, so they use the restaurants. We've found that it brings in a different clientele it supplements, not supplants, and is not competition to Indigo, but rather helps it. WINNING FORMULA: Customer service. We can never do enough training and are constantly complimented on our employees and what they do. Customer service comes first and second, and we're always trying to think outside of the box. CHALLENGES: The number of employees that are tribal members has increased dramatically in the last three years, and often they come in untrained, which takes a little bit more effort. Those have been challenges, but challenges that we welcome. We have also had difficulty getting basic infrastructure because of our location on the border of Oklahoma and Missouri. We are at the edge of Oklahoma, which is an extremely rural area, so it's not been profitable for infrastructure companies. We've had to pay $2 million dollars to run a natural gas line, so that we could have natural gas. We've had to cooperate with the small town of Seneca, MO, which has a population of less than 2,500, to share a sewer system, which means that we have to meet the regulations of both Oklahoma and Missouri. LOOKING AHEAD: When we built Indigo Sky, we weren't able to have too many different kinds of amenities. For example, we weren't able to put in exercise facilities or a spa. We had to keep our vision fairly narrow at that time. As we develop, we will certainly expand into some of those amenities. We are trying to become a destination resort, giving guests many varied options. While we don't have a golf course, we've teamed up with a town on the lake that does have one. Guests can also go fishing or visit our Bordertown property for bull riding. We are also in the process of building an outdoor shooting range. We want to provide guests as many options as possible, and are pursuing the destination resort concept. July 2018 Indian Gaming 31