Deutsche Bank: Tribal Casinos will Devastate Reno

"`With the operation deadline under the (existing) compact(s) nearing which requires tribes to have operations started by June 26, 2003, we expect approximately 5,250 new slot machines ... to be operational by the beginning of the third quarter 2003,' Deutsche Bank analyst Andrew Zarnett said.

"…Compact renegotiations may also allow for additional slots per tribe, which are currently capped at 2,000.

"The surge in slot machine availability, combined with the improved quality of Indian casinos together will be `devastating in time for Reno,' Zarnett said.

"Gaming expert and University of Nevada, Las Vegas professor Bill Thompson said the surge in slots will adversely affect Northern Nevada disproportionately compared with the south.

"…But Thompson said with the increasing number of slots in California, people who just want to gamble will find alternatives rather than drive over the mountains to Nevada.

"…The San Francisco/Sacramento area is the primary base for generating gaming customers in the Reno market, Zarnett said.

"..However, Reno has already started feeling the effects of the competition.

"In 2002, the number of visitors to Reno decreased to 4.9 million, down 2.3 percent from 2001 when the number of visitors also declined 3.5 percent…"

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