CNY Business Journal (1996+): Mohawk Casino Attracting International Clientele

HOGANSBURG, St. Regis Mohawk Nation--The Akwesasne Mohawk Casino is approaching its first anniversary as New York State's second legal casino.

The 90,000-sq.-ft. gambling facility opened in April 1999, bringing jobs to 800 local residents, half of them Mohawk nationals. The $30 million complex is located on the southern side of the St. Regis Mohawk reservation that covers both the American and Canadian sides of the St. Lawrence River just east of Massena. Unemployment rates on the reservation historically have been higher than in the surrounding regions of St. Lawrence and Franklin counties.

The reservation degenerated into open warfare over the operation of illegal gambling halls during the early 1990s, but Alison Calkins, a casino spokesperson, says the atmosphere has become more peaceful since the casino opened. Many local residents oppose gambling as part of their religious beliefs, though since the casino opened there has been none of the overt factional violence that had divided the community in the past.

One month after its opening, the casino installed the first of 1,000 video gaming terminals allowed under a revenue-sharing agreement with New York State. The state receives 10 percent of the machines' gross take, and provisions in the agreement allow for the state to receive a higher percentage if the machines take in more than $30 million annually.

New York is able to share in the casino's revenues because of provisions in the federal Indian Gaming Regulatory Act of 1988, which legalized state-approved gambling on Indian reservations. Governor Mario Cuomo signed gaming compacts with the Oneida and Mohawk Indian nations prior to his leaving office in 1995.

The video gaming terminals are unique to New York, a state where traditional slot machines are still forbidden by law. The machines have a touch-screen video display and offer electronic versions of several popular casino games. Unlike slot machines, winnings come in the form of paper tickets redeemable for cash. New York's gaming industry developed the machines specifically to skirt the legal definition of a slot machine.

Though slot machines are banned in New York, the Mohawk casino benefits from Canada's similar ban on dice games. Canadian players cross the border to play the forbidden game of craps, just as Americans slip north and west to enjoy Canada's one-armed-banditequipped casinos. Both countries sanction gambling yet they disagree on the social value of certain games. The governments of Quebec and Ontario each operate gambling casinos in their provinces.

The casino is attracting an average of 2,000 visitors per day, thanks to extensive promotions designed to keep the flow of gamblers coming, says Calkins.

Promotions aimed at bringing more people to the new gambling hall have included reduced-price meals, giveaways, and even motorcycle runs. Half of all visitors come over the nearby border crossings via the bridge from Cornwall, Ontario, and across the invisible border the reservation shares with the Province' of Quebec. Patrons can use either country's currency at the gaming tables and machines.

In order to attract new customers, the casino opened a 700-seat showroom this fall. Since its opening, the venue has hosted acts such as Roberta Flack and K.C. &, the Sunshine Band. Calkins says the showroom is part of the continuing process of attracting clients to a largely rural area.

"The entertainment is one way we attract people who may have never visited the casino before," she says.

Because casino traffic is traditionally heavier on the weekends, many casinos pursue the available market of seniors who travel by bus for a day of gambling. The Akwesasne Mohawk casino offers several promotions aimed at tapping the senior market to keep the gaming floor filled during daytime hours. Seniors are particularly fond of the casino's videogaming machines, Calkins says.

According to Calkins, gambling machines, such as video poker, have grown to become the biggest revenue source in the gaming industry, surpassing traditional gambling such as card games, roulette, and craps, as gambling has become a more socially acceptable form of recreation in the United States. The growth of machines, she adds, is attributable to their popularity with female customers, who prefer those games.

Though Calkins doesn't have the exact figures on the casino's finances, she says it's turning a profit, despite predictions that it couldn't attract enough gamblers because of the remote location. Profits from the operation go to the Mohawk government, which uses them to improve the nation's infrastructure.

Future plans for the casino include the addition of a hotel and other facilities to attract more gamblers to the gaming floor. The Mohawks hope to follow in the footsteps of the Oneidas, fellow Six Nations members that have progressed from a relatively small gaming operation to the largest employer in Oneida County.