Branding is everything, especially in the increasingly competitive gaming market.
With that in mind, Philip Satre plans to further develop the Harrah’s Entertainment, Inc. brand via the $100 million casino and hotel the Las Vegas gaming giant plans to develop and operate for the Rincon San Luise & #324;o Band of Mission Indians near Valley Center.
Founded 60 years ago, Harrah’s has built customer loyalty and brand awareness through its software-based total rewards program. Under the program, customers can use redeemed player rewards at any of Harrah’s 20 casinos across the United States.
“What we’ve done is become very adept at being able to identify what to offer our customers,” said Satre, Harrah’s chairman, president and CEO. “You need to be able to identify your customers: Will this customer be loyal to me? How much budget do they have (for gaming)?”
Harrah’s plans to further build its brand by introducing a new and improved Web site. The site, slated to launch next month, will include links to all Harrah’s casinos. The new Rincon casino, scheduled to open next fall, will be promoted through the Web site, as well as through TV, radio and print advertising.
A temporary casino at Rincon will be open for business this fall.
Harrah’s won’t make as much profit from the Rincon casino since it will be owned by the tribe, but Satre said it still makes sense to invest in the North County operation.
‘Expanding Our Brand’
“We’re in the business of expanding our brand,” he said. “This is a great opportunity for Harrah’s. Southern California is a big market.”
Satre said the Rincon casino, which will include three restaurants, will have a Southwestern feel with a splash of Brazilian carnaval, much like The Rio in Las Vegas.
He said while the casino will have a certain atmosphere, it won’t have a particular theme. Unlike the saturated casino market in Las Vegas, tribal casinos in California don’t need themes to lure potential patrons, he said.
Satre is aware, however, there is competition in San Diego , the Viejas Band of Kuymeyaay Indians, the Barona Band of Mission Indians and the Sycuan Band of Kumyeyaay Indians already have thriving, well-established casino operations in San Diego’s East County.
“We don’t know if we’re going to be the market share leader in this market,” Satre said. “But I don’t think that’s what the tribe is concerned about. The tribe is more concerned about the economic impact it will have on them.
“(The Rincon tribe) is not in this to operate a casino. They’re in this to provide an economic lifeline.”
Emerging From Poverty
Rincon Chairman John Currier concurs.
“This project will enable the Rincon people to emerge from poverty and get off the welfare roles,” Currier said in January after the deal between Harrah’s and Rincon had been announced. “This development will create good tax-paying jobs with high quality benefits for the tribal population and the surrounding communities.”
The new Rincon casino is expected to not only bring prosperity to the tribe but it is also hoped to prove tribal members as legitimate business owners.
In 1998, Rincon faced scrutiny when the Pittsburgh Mafia was tied to the $2.1 rebuilding and reopening of the tribe’s casino in 1994-95.
Former Rincon councilwoman Ruth Calac was sentenced to eight months in prison for lying to a grand jury probing mob investments of the rebuilding and reopening of the Rincon casino.
Calac helped secure the tribe’s contract with a consortium called the Columbia Group, which was later exposed as a mob front.
Sixteen other defendants pleaded guilty to various felonies ranging from conspiracy to defraud the U.S. government to bribing a tribal official.
The casino closed 14 months later.
The Rincon casino had been closed since 1989 after a similar takeover attempt by members of the Chicago mob.
Satre said the mob incidents don’t affect Harrah’s confidence in the new Rincon casino.
Cultural Differences
“We don’t see that having an impact on the success of the business,” he said. “There were some people involved in the tribe’s government that made some big mistakes. We feel very good about the people governing the tribe now.”
There are cultural business differences, however, between tribes and big Las Vegas casino operators, Satre said.
“I’m motivated by profit, but I don’t want to be involved in a tribe unless I respect their autonomy and their needs. You learn you have to make decisions with the tribe. I have enjoyed that part of the business. I have learned a lot from the tribes.”
While the Harrah’s-Rincon deal was the first reached between a California Indian tribe and a major gaming company, it isn’t the first time Harrah’s has been involved in Indian gaming.
Harrah’s currently operates casinos for the Ak-Chin Indian Community near Phoenix, the Eastern Band of Cherokee Indians in western North Carolina and the Prairie Band of Potawatomi Indians near Topeka, Kan.
