At the Lake: South Shore braces for impact from Red Hawk

SHINGLE SPRINGS " The Red Hawk Casino in Shingle Springs is holding its grand opening today, and South Shore business are seeking ways to compete against and possibly partner with the new casino.

On Tuesday morning, workers were putting in the last few slot machines, stocking Red Hawk key chains in the gift shop and making other last-minute preparations for the casino's opening tonight at 7. Red Hawk Casino is off Highway 50 outside of Placerville, about 60 miles from the South Shore.

Carol Chaplin, Lake Tahoe Visitors Authority executive director, said she met with Red Hawk Casino representatives, and they offered to refer business to Lake Tahoe.

"I don't know how it will work, but there's nothing to lose," Chaplin said. "Right now we're talking to properties to see if they want to test the waters."

The casino doesn't have lodging, so it's trying to attract the day-tripper rather than overnight guests, Chaplin said.

There are about 250 rooms near Red Hawk, Chaplin said.

Jerry Bindel, South Lake Tahoe Lodging Association president, said Red Hawk Casino representatives want to promote El Dorado County as a whole, and that involves referring lodging business up to the South Shore.

"I think this could be an interesting fit," Bindel said.

Peter Fordham, Red Hawk Casino general manager, said the casino has partnered with nearby lodging businesses, and thinks the casino will bring economic growth to El Dorado County. About 46 percent of the 1,750 people hired already live in El Dorado County. More than 20,000 applied for jobs at the casino, he added.

Fordham said Lake Tahoe offers attractions in addition to gaming.

"We hope people will stop here on the way up (to Tahoe) and on the way back," Fordham said. "There's plenty of business to go around."

Lakeside Inn & Casino CEO Mike Bradford said Lakeside has been preparing for Indian casino competition for 15 years. Red Hawk is one of many casinos outside the Tahoe area in California. Red Hawk's main draw is its easy access because it's right off Highway 50.

"We're not competing directly with Red Hawk," Bradford said. "Our focus is on the locals and improving the quality for them."

Many gamers have already decided not to come to Lake Tahoe because tribal casinos in the Sacramento area are easier to get to, said John Packer, director of entertainment and public relations for Harrah's and Harveys at Lake Tahoe.

"The people who went just to pull the slot machines already have made their decision," Packer said.

Bradford said there's a great need for Tahoe to define itself and compete as a destination area.

The South Shore offers many things Red Hawk doesn't have, Chaplin said, including more entertainment.

The only music venue at Red Hawk is a small stage behind one of the four bars. The first band to perform is Jim Belushi and the Sacred Hearts Band.

Shingle Springs doesn't have the recreational attractions either, such as the ski resorts, Chaplin said.

"We have snow," said Tom Davis, Horizon Resort Casino marketing director.

Davis said the Horizon will continue to provide entertainment that Red Hawk won't, and also market Lake Tahoe's recreation opportunities.

Packer said the South Shore Room at Harrah's will celebrate its 50th anniversary next year, and the entertainment lineup there along with the Harveys Outdoor Concert Series are something Red Hawk doesn't have.

But the South Shore needs to reinvent itself, Chaplin said.

Red Hawk Casino is anticipating 4 million people walking through its doors during the next year, Chaplin said.

"There are certain segments of regional travelers who are Tahoe-loyal," Chaplin said. "But some of our markets are temporarily distracted. Our challenge is to speak to those audiences and show them what they can get here, that they can't get in the four walls of Red Hawk."

Chaplin said it's uncomfortable for people to change their marketing tactics, but it works and needs to be done.

Betty "B" Gorman, Lake Tahoe South Shore Chamber of Commerce president and CEO, said the chamber is working to expand the South Shore's offering beyond gaming. More niches need to be explored and strengthened, such as ecotourism, Gorman said