Vol. 4, No. 4, April 2008
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Steve Arcana
Vice President of Operations, Golden Gaming Inc.
Steve Arcana got started in the gaming industry in Atlantic City and came to Las Vegas in 1995 to join Station Casinos as food and beverage director for a number of the company’s properties. He eventually moved up to vice president of food and beverage at the corporate level.
At that point, he crossed over to the gaming side of operations, entered a casino management program the company offered, and moved from general manager of Boulder Station to vice president and general manager of Santa Fe Station and ultimately vice president and general manager of Texas Station.
He left Station to work at Golden Gaming, headed by Blake Sartini, another former Station executive. As vice president of operations for Golden Gaming, Arcana is helping to guide a premier casino management company and a growing casino developer and operator.
He recently spoke with Casino Connection Managing Editor Greg Jones at the Golden Gaming executive offices in Las Vegas.
Casino Connection: Golden Gaming started with a Nevada slot route and has grown into the chain of popular video poker bars PTs, you have the flagship Sierra Gold Taverns, casino operations in Pahrump and Colorado. Could you talk about how the company got started and what spurred its growth?
Arcana: Golden Gaming started as Southwest Services operating as a subsidiary of Station Casinos. The business included the operation of vending machines, pay phone and a small slot route service within the Las Vegas Valley. In 2001, Mr. Sartini resigned his position as chief operating officer for Station Casinos and acquired Southwest Services. He renamed the company Golden Gaming and that is when the company began to diversify and rapidly grow.
How did the company get involved in gaming in Colorado?
Colorado has been a market that we have been watching for many years. In late 2004, we were presented with an opportunity to purchase two separate operations in the Blackhawk Market. The first of which was the acquisition of the Mardi Gras Casino and the second was the purchase of two properties, Golden Gates and Golden Gulch, directly adjacent to the Mardi Gras. This transaction took place in early 2005, and the three properties were re-braded as the Golden Casino Group.
Colorado has recently enacted a statewide smoking ban. How are you dealing with that at your casinos?
We have constructed convenient, heated and partially enclosed patios. Our patios are very spacious and offer multiple entrances from our casino area. With our aggressive marketing approaches and convenience of our patios, we have minimized the effect the smoking ban has had on our business.
Have you seen any change in numbers or at this point is it too early to tell?
It’s too early to tell. I would say at this particular point the effects have been minimal.
You also operate the Pahrump Nugget and are working to finalize the deal to acquire the Saddle West casino in Pahrump from Marnell-Sher Gaming Group. What is it about the Pahrump market that is attractive to Golden Gaming?
Pahrump is just a short distance from Las Vegas and shares some of the same dynamics as Las Vegas. Fast growth, low unemployment and pleasant year round weather make Pahrump a great substitute for families and retirees moving west. Our approach in Pahrump has been very simple and successful. We offer quality gaming and food product, excellent amenities and the best service in town. The property has recently been renovated and includes all new amenities including 24 lanes of bowling, a state-of-the-art race and sports book, a poker room, 70 hotel rooms and the finest restaurant in Pahrump called the Stockman Steakhouse.
Do you have any expansion or development plans for the Pahrump area?
We have a world-class master plan for the Pahrump Nugget and will commit to it in phases as long as the market matures and continues to grow. We are still in the due diligence phase of our acquisition of the Saddle West Casino. We feel this property is a compliment to our Pahrump market positions. We look forward to the continued success of this property as well.
There was recently an announcement that you are working to develop a full-blown casino in Northern Nevada as well. What are you hoping to bring to that area?
Our location is at the intersection of Route 50 and Highway 395. We feel like we have the premiere location in the Carson Valley. The project is called the Sierra Gold Casino in Carson City, and this project is very appealing to us. We feel this project will add a new style of gaming excitement and hospitality to the Carson Valley. In keeping with the standards that our company is known for, our gaming operations, food quality and outstanding customer service will be the attraction.
Do you have a tentative timetable and budget for that project?
Right now the Northern Nevada market continues to recover from the rapid expansion of tribal gaming in Northern California. We will continue to monitor this recovery and will decide when the timing is right for this project to commence. At this time there is not a set budget.
Golden Gaming has thrown its hat into the ring in Kansas. Other than the state providing a new market opening up to gaming, what is it that the company finds attractive about the area?
The Kansas City market is very appealing for many reasons. This is a market that is convenient to several-million day trippers. Several of us have experience in the Kansas City, Missouri, market. With no boarding process or loss limits, the Kansas gaming regulations appear to be more favorable to the operators compared to Missouri. Most importantly, our project proposal of a $660 million world-class casino resort with quality amenities such as upscale restaurants, spa facility, bowling, 300 guest rooms, lifestyle retails and a Tom Watson Championship gold course seems to be a terrific fit for Wyandotte County. We are currently in the process of sharing the details of this project with Kansas City gaming officials and we hope to hear the results of the presentation by the middle of this year.
For the last year here in Las Vegas, Golden Gaming managed casino operations for Morgans Hotel Group at the Hard Rock. Could you talk about how your relationship with Morgans developed and what ultimately led to that contract?
We were actively pursued by executives of the Morgans Hotel Group back in the middle of 2006. We agreed to manage the casino operations of the property while they sought approval for a gaming license. The relationship has been a good one. In particular, we feel that our casino and slot marketing expertise has been a welcome component to the success of this iconic property. The Morgans Hotel Group has been approved by the Nevada Gaming Control Board and the Nevada Gaming Commission to operate the casino, and thus our obligation came to an end February 29.
Could you talk about the experience of running the Hard Rock? It’s a pretty well-established property, popular destination. Were you able to learn anything that you can bring to your properties in Pahrump or Colorado, or that you can bring to Kansas or Northern Nevada?
Operating the Hard Rock Hotel and Casino was an excellent experience for our company. The casino offers a very high energy environment that caters to a unique, typically younger demographic. In both current and future Golden Gaming operations, there may be some similarities to this type of environment, and we will learn from our experiences as we continue to develop our product.
You are launching a new brand in the Sierra Gold/PTs brand. Could you talk about what that is?
I will be somewhat limited, because we’re keeping the project under wraps right now. The brand is called the Loft, and our first Loft operation will open in June or July. It’s a very exciting operation to be planning. We traveled to several cities in the U.S. and found and observed concepts that are used in upscale retail operations. We’ll feature high-end spirits—saki, vodka, tequila—live entertainment and we’re very excited about launching our first Loft. It should be a nice addition to our portfolio.
