Here comes the sun

By Jeff Simpson

August 29, 2000 Web posted at: 12:57 PM EDT (1657 GMT)

In this story: More than slots Sizing up the competition RELATED STORIES

LAS VEGAS, Nevada (Las Vegas Review Journal) -- Billboards throughout the valley proclaim "Suncoast. Opening Fall 2000." Fall begins Sept. 22, but Coast Resorts' northwest Las Vegas casino is gearing up toward a Friday opening. What gives?

Suncoast Vice President and General Manager David Ross has a ready explanation.

"Customer service is our highest priority," Ross said. "We don't want to commit to opening on an exact date, then disappoint people if it's impossible to open by then."

Ross said the Suncoast hasn't accepted room reservations for the coming weekend because he wants to avoid the problems faced by the delayed openings of the Aladdin and The Venetian, where guests were sent to competing properties.

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The $200 million project at the intersection of Rampart Boulevard and Alta Drive is Coast Resorts' fourth casino, joining the Barbary Coast, Gold Coast and The Orleans. Unlike its predecessors, the Suncoast is quite a distance from the Strip -- 11 miles -- while the Gold Coast and The Orleans are both about one mile from Las Vegas Boulevard, which is home to the Barbary Coast.

"We plan to draw most of our customers from the 300,000 people living within a 5-mile radius of the Suncoast," Ross explained.

He estimates 85 percent to 90 percent of the casino's customers will be Las Vegans.

The 80,000 square-foot casino has 2,000 slot machines and 48 table games. And like many of the newer locals casinos, the Suncoast has a wide range of nongambling activities to attract Las Vegas residents.

A 16-screen movie theater, 500-seat showroom and a 64-lane bowling center will provide a variety of entertainment options. The Suncoast has four restaurants, a buffet, an oyster bar, a fast-food counter, a coffeehouse and an ice cream parlor, as well as a lounge and a showroom bar.

Ross said the nongaming amenities are key to attracting the local customer.

"People don't say `I think I'll take a couple of hundred bucks and go gamble,' " Ross noted. "They say, `Let's go out to dinner,' or, `Let's go to the movies,' or both, and then they also visit the casino."

What will the new casino mean for Las Vegas' $1 billion-plus locals gaming market, and more specifically for the Suncoast's Rampart Boulevard neighbor, the Regent Las Vegas? Not much, an analyst said.

"I think the Suncoast will have minimal impact on the locals market," said Merrill Lynch gaming analyst David Anders. "The market grows fast enough to more than make up for increases in casino supply."

Ross said Coast Resorts thinks his casino's primary competition will come from the "Station Strip," of Rancho Drive, where Station Casinos owns Texas Station and has agreed to buy the Santa Fe and Fiesta.

"They offer good amenities," Ross noted of the competition. "Texas is adding theaters and convention space, so we've got to offer the best food, at great prices. Michael Gaughan (Coast Resorts chairman) insists that we offer the lowest slot-hold percentage, with the best payouts. That's what the local customer wants."

Darrell Luery, president and chief executive officer of The Regent, sees the Suncoast as a plus for his northwest Las Vegas property.

"We're very enthused about them being there," Luery said. "There is a glow effect from the clustering of more than one property. One plus one sometimes equals more than just two."

Gamblers like to have a nearby casino to go to if their luck's not running well, he noted. Plus, the distinct amenities the properties offer complement each other, Luery explained.

The upscale tourists the Regent attracts may want to see a movie at the Suncoast. Similarly, Suncoast patrons may want to visit the Regent's spa, Luery said.

Leury and the Suncoast's Ross said they expect their casinos' relationship to be akin to the cooperative past relationship of the Fiesta and Texas Station rather than the at-times contentious one between Sam's Town and Boulder Station.

Luery and Ross have already met and talked about things they may do to promote their properties. One possibility they discussed was running a shuttle bus between the two.

"If you combine the two properties, it's a megaresort," Luery said. "The distance between our two properties is less than the distance from one end of the MGM Grand to the other."

Suncoast hotel guests will enjoy views of the Angel Park golf course, the Regent, with Red Rock Canyon National Conservation Area and the Spring and Sheep mountain ranges in the distance.

Just as Suncoast refuses to commit to a certain opening date, Ross says he's not cocky about his casino's prospects.

"If you get overconfident, you'll get your head handed to you," he said. "You have to understand your customer. If there's one thing you can count on with a local casino customer, you can be sure they'll tell you when something's wrong."

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