SEARCH NEWS:

 

Fitzgeralds Continues to Evolve

by Liz Benston

LAS VEGAS -- Few people outside the casino business know that the owner of the Fitzgeralds casino downtown is also the first black to run a U.S. casino company that includes a Las Vegas property.

That may change as owner Don Barden considers taking a more public role in the Irish-themed property's marketing and promotional efforts.

"That's something we're examining," said Barden, who was in Las Vegas Thursday for the property's second anniversary celebration, held to coincide with Black History Month. "But I'm not sure that's necessary."

Barden said he is "pleased" with the property's rebound from Sept. 11, its positive cash flow and reduced debt.

"It's not an easy market," he said. But "people still come to Las Vegas because it's the gaming Mecca."

He continues to upgrade the property he acquired out of bankruptcy in 2001. But new efforts are under way to lure bigger-name entertainment downtown.

The property recently began leasing a long-vacant, two-story building nearby to supplement the casino's banquet space and host regular performances.

The Detroit-based businessman is rarely in Las Vegas and is a more frequent visitor at his flagship Majestic Star riverboat casino in Gary, Ind., a smaller property with less competition that generates several times' the Las Vegas property's cash flow. Barden's entry in Las Vegas in 2001 perhaps did more to establish him as an industry player, however.

Barden made history when he won a license to operate the Indiana riverboat, which opened in 1996. He bought the Fitzgeralds chain of casinos in Las Vegas, Tunica, Miss., and Black Hawk, Colo., out of bankruptcy in 2001.

The ninth of 13 children, Barden was born from humble beginnings in Detroit. He quit college when he ran out of money and then began a series of business ventures, from starting a weekly newspaper to purchasing real estate. He built a fortune by investing in cable franchises in underserved areas, then sold his cable business to invest in the gaming industry.

Other than a lighted display near the hotel's bell desk, Barden isn't readily identified with the property.

"We would like to see him in the Las Vegas community more," said Teresa Malm, the property's vice president of marketing. "It gives us more visibility in the community. From a brand standpoint ... it has a lot of appeal."

The property's modest marketing budget now depends on sending direct mail to repeat customers -- the vast majority of whom aren't black. Most of the property's print and radio ads are local. By telling Barden's story, the property may do more to reach out to black customers nationwide in the future, Malm said.

"The African-American community is becoming more aware that the Fitzgeralds is owned by Mr. Barden," she said.

Last year, his Barden Cos. Inc. was named "Company of the Year" by Black Enterprise magazine and earned the publication's No. 6 spot of top black-owned companies with $347 million in sales, beating out Oprah Winfrey's film and television empire. Last month Barden received a Trumpet Award, a national honor given by the Turner Broadcasting System Inc. and recognizing people who make a difference in politics, law, business and entertainment.

Barden said he doesn't think of himself as a role model.

"I think the gaming industry is a good industry (for minorities) in terms of management participation," he said.

The industry's former practice of excluding minorities "has changed rapidly," he said.

"There's nothing to preclude a minority or African-American from owning a casino."

Barden said he's interested in pursuing casino deals elsewhere in Las Vegas and nationwide. He's also eyeing his hometown of Detroit, where he and others sued over the process that awarded contracts for three temporary casinos.

Barden also said Thursday he is in talks with government officials in the Turks and Caicos Islands, which are near the Bahamas in the Caribbean, about developing a casino resort. The islands don't yet have casinos and are considering them for tourists who disembark from cruise ships.

Barden has so far invested around $2.5 million in the Fitzgeralds, including opening a pool in June, expanding the property's showroom and renovating the lobby with Italian marble and new furnishings. Renovation work continues on corridors and rooms at the hotel, which has about 650 rooms.

Last year the company received regulatory approval to spin off the Las Vegas casino from the rest of the Fitzgeralds properties, a restructuring move that will give the property greater financial flexibility to pursue upgrades and other capital spending projects. The spinoff was completed Dec. 31.

The events scheduled for the property's second anniversary build on last year's offerings and are aimed at involving the entire community in the recognition of contributions made by blacks, Barden said.

They include a motivational session for Kermit R. Booker School students in honor of Black History Month as well as a concert under the Fremont Street Experience canopy Friday.

And "Taste and Sounds of Soul," an event organized by a black-owned advertising agency that will feature food booths run by local, black-owned restaurants, starts Saturday.

Copyright © Las Vegas Sun. Inc. Republished with permission.

< Gaming News