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Gambler's blues: Casinos cut jobs, hours: Recession ? As Utahns tighten spending, Mesquite, Wendover feel the pain. (The Salt Lake Tribune)

By Mark Havnes, The Salt Lake TribuneMcClatchy-Tribune Regional News

Dec. 4--MESQUITE, Nev. -- Robert R. "Randy" Black Sr. furiously worked his cell phone Wednesday at a restaurant table in the CasaBlanca Resort and Casino, fighting off the pressures of a sour economy.

Besides the CasaBlanca, the CEO of Black Gaming LLC, owns the Oasis and Virgin River hotels and casinos. He plans to lay off about 500 workers by Friday at his operations here on the Nevada-Arizona state line, 40 miles south of St. George.

"For the past 15 months we've been working on adjustments to get to the right level, but [the economy] just keeps running away," Black said. The other 1,650 of Black's workers will keep their Mesquite casino jobs.

The two gambling-based communities that count on Utah for much of their revenue, Mesquite and Wendover, are suffering from the nation's recession as Utahns tighten their hold on their wallets.

Black said his company began drastically reducing operations at the 1,089-room Oasis to stop a financial decline that saw company revenues drop 27.7 percent in the third quarter compared with 2007.

Gambling revenue in Wendover was down 4 percent during the same period, according to the Nevada Gaming Commission. During the third quarter a year earlier, though, Mesquite's gaming revenue rose 13 percent while Wendover's was up a healthy 12 percent.

"The perception here is that business has been slow lately, but it is not anything like what is happening in Mesquite," said Chris

Melville, city manager for West Wendover. "Everyone has been tightening their belts, though, and doing what they must to get by."

Melville said Wendover's casinos have put many employees on a four-day work week. Also about 40 to 50 people recently were laid off from the casinos city-wide, which employ about 2,500 people.

The fourth quarter, so far, isn't looking any better for Wendover or Mesquite. "There is sure to be more belt-tightening this month, until New Year's Eve when things really pick up," Melville said.

Black said the layoffs are part of a plan to increase revenue while cutting costs to allow the casino to recover.

Jose Martinez was laid off Nov. 14 from his Oasis kitchen job and is struggling to find work.

"They told me I wasn't needed and I've been looking for a new job ever since," he said.

Reynaldo Garcia, who buses tables at the CasaBlanca, said he doesn't fear losing his job, but said workers are concerned. "I'm OK," he said. "But everyone seems to be worried about what's going on."

Black indicated a small number will be laid off at the CasaBlanca and Virgin River operations, but said those two properties will operate as normal.

Gaming is not immune to the effects of a downward spiraling national economy that has seen many industries doing 80 percent of what they did before, Black said. "Everybody across the board is hurting in gaming. The same thing is happening in Las Vegas, we're [Mesquite] just smaller."

As Jerry Pipkin waited Wednesday evening in downtown Salt Lake City for a Trailways fun bus that would take him to Wendover for a rendezvous with the blackjack tables, he said it has been nearly three months since he visited the gambling hot spot to the west.

"Six months ago I was going about every other week," Pipkin said. "The recession, though, is really biting into people's money, and I'm no exception. It just seems to take more to get by these days."

Leroy Meek, a Cedar City resident who makes regular trips to play slot machines at the Oasis, arrived Wednesday to try his luck. "I lose continuously," said Meek as he headed to the casino from a largely vacant parking lot.

When asked what he would do if the casino closed, Meek quickly said: "I'd quit gambling."

Black does not want that to happen and said he is still advertising his Mesquite operations. "Mesquite is still a great place to come," he said "There aren't chains on the doors."

mhavnes@sltrib.com

steve@sltrib.com

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Copyright (c) 2008, The Salt Lake Tribune

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