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In October 2008, Delaware North Companies of Buffalo, NY won the rights to build and operate a casino at Aqueduct racetrack.

That deal fell through in March, a casualty of the recession. But when the bidding reopened a few weeks later, half a dozen companies lined up to vie for the rights-including Delaware North, back for a second go at the lucrative concession.

Aqueduct may be the most prominent racino project in the pipeline today; located in Queens borough, it would be the first casino smack-dab in the middle of New York City. But with 44 racetrack casinos in 12 states seeing double-digit growth despite an economic slump, half a dozen states in the U.S. are now considering these hybrid operations, which are also multiplying in Canada.

For gaming operators and their host states, racetrack casinos are a way to use space already assigned for wagering to expand the gaming menu and generate potential millions in annual revenue. For horsemen, racinos are seen as a way to save a flagging industry and turn a perceived competitor-the casino-into an ally.
‘Racing in its heyday could attract 10,000 people on a Saturday afternoon, but those days are, for the most part, gone,” says Joe Emanuele, vice president of Friedmutter Group Architecture & Design of Las Vegas, which is working on the Coronado Park racino project in New Mexico. “When you add a casino to a racetrack, it’s racing that benefits, with more revenues, more races, better purses. In every jurisdiction I can think of, when a casino comes to the facility, it’s sparked the industry.”

But how to take an existing venue-one that may be decades old, or older-and add space for gaming that makes sense, aesthetically and from a practical standpoint?

“The challenge,” says Emanuele, “is to integrate the two sides so people feel they’re coming to a new place, an integrated entertainment facility, and not the same old racetrack.”

But in this race, the track doesn’t want to be perceived as coming in second. Though the racing season is brief and most casinos run 24/7, track owners-usually diehard horse people-want to maintain the sport of kings and the loyalty of horse bettors, who may have patronized a facility for years before gaming came along.

“It’s an expansion of the base, not a shift from one to the other,” says Emanuele. “In addition to the benefit for racing of casinos and slot machines, people on the casino side are getting an introduction to the kind of nostalgic leisure activity their grandparents enjoyed-the tranquility of horses and green spaces.”

Old Meets New
The balance between racing and gaming has been achieved with notable success at Oaklawn Park in Hot Springs, Arkansas. The venerable century-old racetrack raised its purses twice this year for a total of almost $16 million, and even added a $500,000 “participation incentive.” The racing handle is up 3 percent, and track attendance over the 54-day meet is up too-to more than 625,000 people.

This fiscal renaissance, which has been clearly linked to gaming, started modestly. In 2000, Oaklawn equipped two small rooms under its grandstand with 50 electronic “historic racing” games. Spurred by the success of those rooms, in 2003 track owners added a 37,500-square-foot space with 500 more games. And in May, Oaklawn completed a $40 million expansion with 650 games including electronic poker and blackjack. Another addition, to be complete next year, will include up to 1,100 total gaming positions, a buffet and restaurant, and a poker room in a total of 90,000 square feet.

The architect for the recent expansion is Hnedak Bobo Group of Memphis. At Oaklawn, designer Shawn Hobbs and principal Craig Conrad found obstacles galore, both literal and figurative: a venue built to obsolete code; a long, a linear grandstand with “a lot of columns where you don’t want them;” and little of the technological infrastructure needed for gaming.

To integrate all-new casino space with an aging structure required “a lot of calisthenics in terms of moving electrical services and building firewalls,” as well as installing hidden systems (surveillance, air quality, sound), Hobbs says.

Though the design team at one point considered a freestanding hall, operational efficiencies demanded that everything remain under one roof. A buffet, kitchen and other amenities were tucked under the grandstand; the formula for a traditional casino floor required some tinkering too.

“Casinos are usually rectangular or square, with retail and restaurants on the perimeter to activate and energize the floor,” says Hobbs. But at Oaklawn, new gaming space was “plugged onto one end of the existing space and wrapped around” the long, four-story grandstand.

To match the new wing to the older structure (which was built in three stages from 1958 through 1979), the Hnedak Bobo team employed “a simple aesthetic with simple materials” for a streamlined look, says Conrad.

“Our building is designed to be a little more austere, with the excitement and ‘wow’ factor on the interior.”

Shared space is accessed from two different entryways for two different sets of patrons-a necessity, as the legal age to gamble in Arkansas is 21, and racing for many in the state is a family affair. The visual transition between racing and gaming areas is made through the use of design features overhead and underfoot.

“We continue strong planes or elements in the ceiling, repeating them from the old space to the new” for a cohesive look, says Hobbs. “In the floor pattern and carpeting, we also carry ideas visually in the field of view from one place to the other to make it look seamless.”

Though there is no overt nod to horse racing in the gaming section, he adds, subtle references can be found by anyone who looks for them.

“Not many people pick up on it, but the floor pattern of the casino includes an abstract theme, a series of galloping horses,” he says. “What we tried to do is conceptually integrate ideas of speed, of dynamic movement, without being obvious.”

As for rebranding the facility to reflect new gaming options, the Cella family, which owns Oaklawn, emphasized tradition.

“Oaklawn is the oldest privately owned track in the country; that name has far more brand recognition than any other name they’d come up with,” says Conrad. “This game room has essentially become an amenity, an additional offering that’s evolved over time.”

Hence the name Oaklawn Racing & Gaming.

Shipyard Challenge
SOSH Architects of Atlantic City and New York faced a unique scenario when they took on the design of Harrah’s Chester, a racino on the Delaware River outside Philadelphia. Unlike other racinos, Harrah’s Chester was built from the ground up, on the site of the former Sun Shipyards.

Casino officials selected the site “because they felt that when gaming was passed in Pennsylvania, track licenses would be cut loose first,” says SOSH founding partner Tom O’Connor. “Harrah’s proposed a site with neither part of the development in place, in hopes that they could jump-start their chances of opening and have a year of operations before slots were approved. And they were dead-on.”

The look of the facility was inspired by the area’s industrial past; the configuration was dictated by its riverfront locale.

“We took our cues from the industry we replaced,” says O’Connor. The result is “a kind of retro industrial chic in terms of building materials. We maintained the steel frame of the existing building, kept the structural bones, and built a new outer shell. And we dropped the track along the river.”

But with just 60 acres at their disposal-racetracks typically require 180 to 200 acres-“that left a pretty minimal area for the casino, which led to different architectural solutions,” O’Connor says. “We had to stack everything.”

The result is a four-story, 400,000-square-foot facility with 3,000 slot machines joined to the racing oval by a pedestrian bridge. The ground level is the entranceway with valet parking; 20 feet up is the racing level with grandstands, simulcasts and some dining; 20 feet above that is the 150,000-square-foot casino.

Harrah’s Chester “has a very long, linear feel, and the challenge there was to create attractions to pull you,” says O’Connor. “You don’t want to feel like it’s a hike-it should feel like a quest, where you discover things along the way. A lot of the food venues are a magnet to pull people through the space. There’s a diner, a 24-hour buffet, a sports restaurant and a fine-dining clubhouse.”

Construction of the 5/8-mile track presented its own difficulties. The onetime shipyard included old shipways that, for environmental reasons, could not be filled.

“We are not racing people,” says O’Connor. “So we went where people know how to design racetracks-Lexington, Kentucky.”

To complete the track, they bridged the shipways and then screened them, so horses would not realize that in the banked second turn of the race, they are actually running over water.

Advice from the horsey set is indispensable during the design phase, observes Hnedak Bobo’s Hobbs. When the firm’s designers were developing Oaklawn, they were told to avoid the colors blue and green.

“Most people speculate that horses are color blind, but they do see color values, and bright or highly contrasting shades can startle them,” says Hobbs. “You don’t want a horse like Smarty Jones getting scared and running off the end of the track.”

Vegas at the Track
Hailed in Global Gaming Business magazine as “Vegas at the track,” the Meadows racino near Pittsburgh, a Cannery Resorts property, opened with a bang on April 15. Even on tax day in the middle of a recession, 10,000 patrons flocked to the racino, jamming the highway for hours and setting new records in the Keystone State.

The transformation of a 45-year-old standardbred track into a multi-purpose destination cost $175 million-a modest investment considering the result. With multiple restaurants and bars, retail spaces, a banquet hall and even a 24-lane bowling alley, the all-new Meadows is an artful fusion of gaming, racing and entertainment that transitions logically from one sector to the next.  

“Integrating the racing and gaming components maximizes the synergies in all of the facilities,” says project architect David Climans of Climans Green Liang of Toronto, specialists in racino design. “It was one of our main objectives to make the racing and gaming somewhat seamless.”

On the casino side, designers went for a true Las Vegas vibe, with subdued lighting, high ceilings and oversized color portraits of the Las Vegas Cannery casinos. CGL and interior design firm Yates-Silverman Inc. also evoked “a subtle equestrian image” within “an exciting timeless design and sophisticated atmosphere,” according to Climans.

Though there has not been much overlap between the racing customer and the gaming customer, “positive cross-traffic can be encouraged with an open flow from the gaming floor to racing, while respecting the individual needs of the distinctly different customers,” says Climans. “By having restaurants that overlook the racetrack, the excitement of racing will hopefully be felt by the patrons who originally came to play slots.

Casino vs. Racing
But variations are inevitable in the two spaces.

At Oaklawn Park, it was not economical to upgrade finishes in the grandstand: “It’s only used 60 days a year,” says Craig Conrad, “and it doesn’t pay to spend a whole lot of money to renovate.”

Finishes in the casino, however, had to be lustrous, he says. “Gone are the days of putting gaming machines on a concrete floor. Mainstream customers are going to expect what they see in other gaming environments.”

“It’s hard for racetracks to justify putting in higher-level amenities for a finite operation that runs for such a short period,” agrees Larry Tombari, president of business development for the Friedmutter Group. “But gamers coming in with higher budgets can invest in them.”

Because racetracks and casinos attract different customers at different times of the day and night, it’s vital that the casino side “announce” itself with an entryway that is more formal and glamorous, says Friedmutter’s Emanuele.

“Whether that is a porte cochere or not, the access, the first impression of the facility is one of the most important statements.”

As columnist Joe Bob Briggs wrote in 2003, “The only racetracks to really thrive are the ones that have slot machines. In many cases their live handle has continued to decline, but their revenues have shot up so fast that they’re able to offer the biggest purses, and thereby attract the best horses.”

Six years later, Tombari echoes that sentiment. “In virtually every state that’s tried it,” Tombari says, “racinos have basically saved horse racing.”

Two years ago construction companies had more casino projects than they could handle. They were in clover, four leafed clover.

A year ago the clover dried up. The bottom dropped out. Several projects are half completed in Las Vegas. Indian gaming projects nationwide have halted in mid-stride. The biggest gaming companies have cut capital budgets as much as 90 percent.

Companies that once turned away clients are scrambling in a market where financing has evaporated. They are looking overseas. They are competing for public works. They seek to become as lean as possible for a protracted dry spell. They are getting creative. 

If financing were not almost unavailable, this would be a great time to build. Contractors and subcontractors are hungry. Raw materials are cheaper and easier to obtain.

Tough as times are, some things casinos MUST do. Like maintain hotel rooms.

Getting Creative
Purchasing Management International, L.P.  is the leading purchasing agent. Since its founding in 1993 by Bill Langmade, it has sourced, purchased and installed over $1.5 billion in hotel, resort and casino furnishings. PMI works with a designer or architect to install designer-oriented products,  including specialty lighting fixtures and millwork.

Langmade calls the market “pretty grim. Many projects are on hold. Some are on a slowdown. Most of our projects with major corporations have stopped.”

The market shrunk 60 percent “overnight.” “There are signs of life-but most companies don’t want to fix up big areas. But they do want customers to stay in the nicest suites as they can.”

A “soft” renovation replaces carpets, bedding and drapes. A complete renovation would be everything, including lighting. “The big hotels constantly upgrade room by room,” Langmade says.

For the countercyclical players, “it is a great time because the cost has gone down so much. But it is difficult to get affordable or in fact any financing,” he says.

Materials are cheaper but often harder to acquire. “The price has dropped, but lead times for fabrics for custom-made goods have increased. The recession has hit China and everyone else. In China 20,000 factories closed. Instead of five companies supplying furniture there might be one.”

That requires more advance planning.

PMI has gotten creative. “You’ve got to get out of your chair, get on a plane and go meet with every client and say, ‘We are still here. We want your business.'”

They cut everywhere-except marketing. “We started this before the downturn. That’s when you need to advertise to get a share of the shrinking pie.

“Most of our clients are budgeting for next year and after. You’ve got to be flexible enough to go away for a few months but be ready when they are ready.

“Our goal is to break even and not lay anyone off. Most gaming companies had serious personnel cutbacks in construction, design and purchasing. They must outsource, so we have opportunities for more work-and we’d better be ready!”

Identifying New Financing
Perini Building Company is the largest builder of hospitality and gaming resorts in the U.S. It is building CityCenter, the largest privately funded project in the country; and the Cosmopolitan Resort & Casino, both in Las Vegas.

Vice President Dick Rizzo says this year will be the company’s very best in its 115-year history, due to its backlog. “Unfortunately to replace that backlog going into 2010 is our challenge now. Most of our work is negotiated and designed two or three years before construction. A good 80 percent is stalled because our clients are having difficulty identifying financing.” 

Perini is proactively identifying funding sources. “We have always had contacts with financial resources but that has never been a focus,” says Rizzo. “Now it is. We hired a consultant to make a list of people we have worked with. We interview them to find out their appetite and how interested they are.”

Along with bond and legal associates, Perini is preparing a white paper on the new American Recovery and Reinvestment Act, aka the stimulus legislation, including Build America Bonds (BABS) and Tribal Economic Development Bonds.

“Such funding is good for hotels and convention centers, everything except the casino,” says Rizzo. “BABS are also appropriate for private hotel developers.

“If you have the financing there could not be a better time to build. Prices have significantly declined-at least 10 percent. But someone would have to have money in hand,” says Rizzo.

Subcontractors are more flexible and cost-competitive. “Where the project has been put on hold- after it is taken off hold and we ask the same subcontractor to re-price it to current conditions-99 percent of the time the cost comes down,” says Rizzo.

Equally important are payment terms. “If we can offer an incentive to sharpen their pencil we convince our clients to pay more frequently,” i.e. let subs bill in the middle of the month for labor and for the entire job at the end of the month. 

Another way to get money flowing is through public-private partnerships. Perini is working with one private investor on an arena on Indian land.

“That will become more common. It’s one of the few ways to overcome a lack of financing by the tribes,” says Rizzo.

Venturing Overseas
KHS&S Contractors has lost half of its revenue from Las Vegas, where it is based. “We lean towards hospitality, gaming and medical. Those projects tend to be large,” says Senior Vice President John Platon, who, when we interviewed him, had just returned from Singapore.

“We saw what was happening a year ago and ventured overseas,” says Platon. “In Singapore they are well under way with the Sands and Star Cruise Lines is building a casino.”

“The economy in Dubai has made headlines but Abu Dhabi is pretty busy. There’s a light at the end of the tunnel in that Macau is going to be back online.”

Many contractors seek overseas suppliers for lower prices but Platon warns, “You have to qualify people more. Before using somebody we put a quality control manager in their factory.”

KHS&S has become creative. “We purchased a company that developed software to promote forward thinking. It identifies problems before they happen,” says Platon. “You have to come up with a better mousetrap. Right now that is technology-based.”

San Diego-based Roel Construction has customers in Indian gaming, and  Boyd Gaming in Las Vegas. According to CEO Wayne Hickey, “Revenue is off considerably. We are making adjustments to overhead and staff. Looking into markets where traditionally Roel has not been.” Those include military, public works and health care.

“We do design-build-something the industry is going for. Design-build can be more economical if the tribe, and the decision makers, define the project well and the design-build team does a good job of providing the needs to match the program.”

Hickey doesn’t see much change in the price of materials, although they are easier to get. But he sees labor prices declining.

Roel is also deploying software programs that help one do the work of two. “When there is a lot of work you concentrate on executing it. But when it slows down you look at your systems,” says Hickey.

Don’t Survive-Thrive
Florida-based ROI Gaming & Hospitality is not just surviving, it’s thriving through a program where casino and hospitality customers are handed a turn key hotel business-at a discount.

Their credit must be pristine. They need to be well capitalized and they can’t be heavily leveraged.

ROI founder Tim Rose worked with both Bally and Trump for many years in property development. He started ROI in the 1990s.

In his most recent partnership with the Three Rivers Casino and Hotel in Oregon, he created the turn key hotel development model.

“Five-hundred-million-dollar casino deals are not going to be done anytime soon,” he says. “I knew of plenty of well-capitalized mid-size casinos that didn’t have lodging but were ready to go the next level.”

ROI stands for “return on investment.” “My philosophy is if I focus on my client’s return, I will be taken care of. We can put in an oversized, four-star hotel room at 25-35 percent less than the competition,” he says.

“If the capital market was more open we would be swamped. We spend more time identifying credit-worthy clients. The universe of people who need a hotel is large but the universe of people who could afford one is much smaller.”

ROI works with major lenders to get affordable financing. A typical client has operated two to five years, has 700-1,000 slots, a good EBITA and is a day-trip casino that wants to broaden its market. “We can deliver an oversize four-star room, complete turn key for $100,000 a key.” That’s 30 percent lower than the industry average.

“A hotel’s benefits are well-documented. You get higher-value players. Your geographic region expands. You have hotel revenues and increase food and beverage revenues. EBITA increases 30 to 40 percent.  That is our niche.”   

Rooms are 400 square feet (industry average is 370 square feet). Furnishings are designed for high turnover. Bathrooms are spacious with an extra vanity.

“You build during a low construction cycle. Now is a good time. Recovery will probably be in 2010. If someone gets into the process today they will open into that recovery.”

Rose and his contractors have been in the business 25 years or more. His preferred architects’ designs are part of the price. They specialize in the medium-size hotel, 100-400 rooms.

“We design it, build it, train the people and put the soap on the counter, so they don’t have to think about it,” he says.

Beyond  Hospitality
PENTA Building Group is a general contractor based in Las Vegas with projects in hospitality, gaming, retail, commercial, and institutional. A recent project is Aliante Station.

During 2006-2007 PENTA turned away work in Las Vegas, which was 80 percent of its customer base. “We had talked about diversifying. In hindsight we should have put more time into diversification,” says Vice President Ken Alber.

They saw the train wreck coming last summer. They were in the third phrase of the Hilton timeshare project, ready to start foundation work, when in May of 2008 Hilton said it was going to slow the project until September.

“September came and went. They indefinitely suspended. This happened to other projects. A year ago we thought we had a nice backlog. That quickly evaporated as credit dried up.” Available work shrank and what remained was very competitive.

“We’re competing beyond hospitality,” says Alber. “Many contractors are bidding on government contracts. Some take it with zero fees and negotiate with subs to make them go lower. In the public sector a library was publicized for $50 million. Fifteen contractors bid the job, which then went for $32 million.”

Alber adds, “Companies are reducing general conditions, of which a good portion is staffing. They are staffing jobs leaner than before, which can be a detriment if you are not careful.

“We are getting out there and meeting and forming new relationships. We won’t aggressively pursue a job and cut staff to zero. We would rather pay three or four people to sit around playing cards than do a risky job.”

PENTA is looking at military projects in the Southwest and establishing design-build relationships with architects to collectively sell services.

It seeks out public sector projects where contractors are pre-qualified through alternative methods employing predetermined fees and general conditions. “It avoids the down and dirty bidding process which sometimes results in a bad project,” he says.

“We have had a few layoffs. We are bidding more competitively. Our fees have declined. We are re-evaluating benefits. We have always treated our employees fairly but we are tightening our budgets. We are thinking more regionally and getting our people into the concept that travel beyond Las Vegas may be required.”

The economy has made materials costs more realistic, he says. “Back in ’07 and ’08  structural steel and concrete costs escalated until projects wouldn’t pencil.” That has changed. Prices are falling. Projects can be built for 20 percent less than a year ago.

Reinventing Themselves
Someone who well knows that situation is Jay Allen, executive vice president of sales and engineering at Schuff Steel Southwest.

“We’ve had to reinvent ourselves,” he says. “We started adjusting a couple of years ago. Las Vegas was a big part of our revenue. 2007 was a big year for us. A large part of it was Las Vegas casino hotel work.” Then things slowed down.

Schuff does strategic planning. According to Allen, “Everybody in the company is a salesman, especially in hard times.” Schuff anticipated the slowdown and sought other markets. It opened an office in Chicago, where it has a project. There is another in Pennsylvania. Both were new markets.

“That has softened the blow,” says Allen. So has going after government and military work. There’s no limit to where the company can go, since it has 11 steel plants nationwide and is acquiring others.

It cut unnecessary costs, trimming and centralizing. “During the down period there are a lot of ways to prepare for the next up-tick. We are doing a lot internally to make us more streamlined, more efficient,” says Allen.

Innovation is a company hallmark. It is one of the few steel companies with a research and development budget.

“We are always looking for new things, new patents,” says Allen.

One factor that unites all of these companies is that they are all forward-looking and optimistic about the future-even though the present is a bit dicey.

Tough times weed out the inefficient. What remains will be companies positioned to take advantage of better times, whenever they arrive.

Virtually every American industry is confronting harsh economic realities this year. Unable to easily circumvent the fiscal damage, smart gaming industry executives have developed a new operating mentality. Rather than construct or expand existing facilities, many are opting to renovate. They believe that despite a shortfall in funding for major overhauls, cosmetic changes that increase their venues’ versatility will still appeal to customers. 

Do Different Regions Face Different Problems?
The American Gaming Association’s 2009 “State of the States Survey of Casino Entertainment” reports revenue losses in five of the 12 commercial casino states in 2008. These statistics are widespread because one corporation may own multiple locations in several states.

What affects one jurisdiction may affect the profitability and available capital of the entire chain. For example,Las Vegas Sands opened its new Sands Bethlehem casino in Pennsylvania on May 22. However, the resort’s plans for a full-scale hotel and retail plans are on hold because LVS has confronted economic issues at its Nevada headquarters. Many other large and smaller corporations have had similar scenarios across the U.S.

Following the housing and banking crises, coupled with travel costs, Las Vegas and other Nevada cities have suffered severe repercussions. Unlike other jurisdictions built on diverse businesses, Nevada depends on a vital gaming industry.

Kimberly Daoust, principal of the Tandem interior design firm in Las Vegas, believes the reality is just starting to hit home.

“Last year we still could cross our fingers and hope,” she says. “This year, 2009, is when reality set in, but we can still only shake our heads and sigh. As casino and hospitality interior designers, the federal Stimulus Package was a box we were expecting, but was delivered to the wrong address. No credit means no projects. It’s as simple as that.”
 

The Effect On Interior Designers
Sagging customer budgets have forced many interior design companies to trim their own expenses and conserve cash as they attempt to meet their customers’ expectations.    

One downside has been the resulting price wars.

William Langmade, president of Purchasing Management Internationalof Dallas, says, “The hardest thing to control is the sudden drop in our competitors’ fees. Many will drop prices in half for expedient cash flow, resulting in not only a huge drop in business, but also a huge reduction in fees for the business still there.”

Daoust states operators are running the gamut with their renovations, and unfortunately, interior designers do not always receive a clear direction.

“There are property owners who see this as the ideal time to renovate and expand, knowing that materials and services are available for less. There are owners who are visionaries and optimists. They believe their properties should be in tip top shape and ready when conditions improve. Other owners aim to reinvent and rebrand themselves-a metamorphosis from their dark, smoke-filled casino spaces-to a level of hip and cool,” Daoust says.

She states that some operators have chosen to purchase materials themselves to cut down on contractor mark-ups. They have used in-house millwork and framing rather than employing outside subcontractors. These operators bought used hotel furniture that may be refurbished and reupholstered. Although using substitutes, quality renovations can get the same fresh look as those new designs.

Little Things Make Space Flexible
Despite the terrible economy, casino operators cannot afford to let their properties deteriorate. Executives are taking a second look at their projects.

Paul Heretakis, vice president of Westar Architects in Las Vegas, says casino clients have asked his firm to consolidate and maximize the use of each space they design. These reduced expenditures affect all areas across the board, including restaurants, retail and spas.

Heretakis says, “Clients are making minor remodels or remediation as they take more conservative approaches to spending money. Minor renovations can include restaurants, bars and casino space as long as the major items stay in the same place. New finishes, service and a brand can make a big impact.”

For Terry Dougall, owner of Dougall Design in Pasadena, California, renovations may not be difficult if planned around the full range of potential events. He states that surveillance cameras and lighting present the greatest challenges, and should be easily portable or provide redundancy for a quick layout change.

Even the most superficial upgrade can improve the aesthetics. Dougall says, “Nothing changes a casino faster than the carpet. Next is the decorative lighting… chandeliers in particular. Too many casinos are dark and foreboding, or just boring. Wall covering is the third primary refresher because it adds life to a space. All three may be done quickly and inexpensively.”

Daoust agrees that carpet designs can clearly date a casino. She says, “Older carpet designs have smaller repeats; the more modern carpets have larger patterns and repeats, use fresh colors and fewer ‘in your face’ themes. A fresh coat of paint also helps.”

Piecemeal property improvements, like a mini-facelift, can also invigorate the casino atmosphere without breaking the bank, says Michael Arias, senior architectural designe of Steelman Partners of Las Vegas.

“A casino can easily be refreshed by simply updating pieces of it rather than the entire property,” says Arias. “We recently did such a project at a local casino here in Las Vegas where it was both a renovation and expansion. We renovated the existing casino perimeter with a new design treatment, added a center bar, and completely re-designed the buffet and two restaurants, with a new food court added as well.”

By renovating the space in a “selective and gradual way,” Arias says, “the owner could keep revenue coming in by not disturbing the property much while making noticeable, effective design changes over time.”

While casinos once competed by continually changing their ambiance, that urgency to renovate has eroded. However, some refurbishing cannot be avoided. According to Principal Ann Fleming of Cleo Design in Las Vegas, “Resort owners are making design decisions more carefully. They are considering improvements to the properties that are ‘must dos,’ such as rooms that have not been refurbished in the last eight years, or worn out casino carpet.”

Another quick but relatively inexpensive solution for hotel rooms may be changing the bed linens and bedspreads. For guest rooms that truly need upgrading, Langmade recommends new beds, flat-screen televisions, drapes and oversheers, and even something as minor as higher quality amenity kits. Customers always prefer better giveaway items.
 

Rehabs Where Customers Eat And Play
No matter where customers choose to gamble, they all love to dine out. A casino will fail without good dining rooms. When determining the need to renovate a restaurant, location should also affect the decision.

However, for Dougall, casino restaurants are expensive and often not worth the effort. He cautions that renovation disrupts during construction, especially when rebranding and creating something totally new. The process involves too many people, from the architect to the food service consultant to the building inspectors.

If a casino does choose to renovate a restaurant, Heretakis advises introducing a new identity.

“Casinos should always rename and rebrand if they renovate. They must tell people to expect a new experience,” he says.

The product is as important as the aesthetics. Rebranding or renovating may be futile without consistent food and service quality. Customers may reject mediocre meals and still ignore the aesthetics of the space.

“If a renovation is required, the best solution for keeping a restaurant fresh is to give it a facelift. However, good-quality food can attract additional foot traffic. As restaurants cost several million dollars today, casino operators must closely analyze the potential return on investment,” says Dougall.

Conversely, Langmade warns that minus some luck, the high costs add little to the bottom line. “I would make it last on my priority list unless the existing facility was extremely dated,” he says.

An exception may be those star-quality venues. Cleo Design Principal Ken Kulas cites incredible design successes of recent casino restaurant renovations, particularly for celebrity chefs throughout the U.S. He explains that new food trends and celebrity chef recognition may create opportunities for additional specialty restaurants. Casino developers have often gambled that the remodel of one restaurant for another will update their property for the repeat customer.   

While restaurants have taken their place among a casino’s important amenities, it is crucial that the gaming area appeal to customers at all levels. However, an obvious problem can be one of comparison. Customers may reject the older areas if an adjacent section of the floor has undergone renovation.

Creating new spaces rather than constructing new rooms may be the answer. “Operators should designate why a specific area needs to be different, and then renovate it to be interactive and voyeuristic,” says Heretakis.

Daoust says that for many projects, Tandem has used low millwork walls to create poker rooms and high-limit slot areas within an existing casino. Many operators believe poker is a trend, so Daoust has suggested altering the space instead of building new rooms. When the trend stabilizes or declines, readjusting the room’s configuration will be easier. To help customers identify these spaces, Tandem has designed light fixtures that separate them from the casino floor.

Another option is to assign multiple uses for one location. Heretakis believes that restaurants that can be easily transformed into late-night hot spots always work. For example, restaurants with open floor space and adequate electrical capabilities can turn into popular nightclubs with live music and dancing. This versatility extends the daily usage of the space.

Lighting may also have a major impact on the mood of a casino floor. Fleming says, “By injecting changing colored lights, light levels, and specific highlights, a sophisticated atmosphere with more subtle lighting techniques can easily be transformed into an extremely animated environment.”

Appropriate lighting dramatizes both specialty gaming areas with distinct themes and those designed to attract a specific customer. This helps a casino cater to different crowds throughout the day. Programmed lighting effects altered at specific times create diverse environments. As an example, flashy lighting may attract a younger clientele at night while brighter lighting may be suitable for a more mature crowd during the day.

However, Langmade warns against doing too much or eliminating gaming space. He says, “Slot machines and gaming tables mean more dollars per square foot than having a flexible space. Unless the new purpose will earn more revenue, operators should limit their renovations to gain flexibility to non-gaming space.”

He points out that the MGM Grand Las Vegas Meeting and Convention Center can accommodate large meetings and small weddings. The building’s design opens into a convention hall with drive-in capabilities. It may also be separated into ballroom or pre-function areas.

It’s important to increase the value of casino space by making it multi-purpose. When Steelman Partners worked on the iconic Monte Carlo Casino in Monaco, they were restricted, for preservation reasons, from making broad structural changes. To maintain the integrity of the historic casino while increasing the usefulness of every square foot, says Arias, “We integrated security cameras into a floor-mounted lighting system that could be moved to accommodate different gaming layouts, or removed from the space entirely if needed.”

Steelman Partners also create a raised flooring system “with the electrical cables running below it, which could be adjusted and modified as needed for any special events,” Arias adds.

The exterior is also an important aspect to a property’s appearance. Curb appeal attracts customers through design, landscaping and outside casino signage. However, the effectiveness of the exterior may prove tougher to measure since it does not generate income.

According to Dougall, “Signage can be incredibly expensive and requires perspective. A shabby, old, unprofitable venue probably has other problems. In that situation, anything is an improvement.”

Construction Continues
Despite the economic downturn, renovation work continues. PMI just completed the Mirage and Treasure Island projects in Las Vegas, plus the Philadelphia Park Casino in suburban Philadelphia. Another recent opening is the Windcreek Hotel and Casino in Alabama. The Wild Horse Hotel and Casino is scheduled for completion this year in Arizona. PMI also anticipates the future opening of the new beachfront Revel casino in Atlantic City, currently rising along the coastline.

After two years, Tandem has completed the Atlantis Resort Casino & Spa expansion in Reno and the Pala Casino expansion in San Diego.

Cleo Design also anticipates finishing its Rivers Casino project in Pittsburgh this year. The company’s participation included the gaming floor, three bars/lounges, the buffet, the high-limit gaming area and an exclusive high-roller lounge. Fortunately, no major redesigns were needed since construction was under way prior to the financial crisis.

Conditions will improve, but when is uncertain. Additional issues like the environment will become more relevant, impacting renovations and design. Kulas says, “LEED certification/green building is becoming the norm in design conversations and in reaching the hospitality industry.”

Still, the biggest obstacle revolves around money.

“The banking crisis has created a long term downward shift in economic growth,” Langmade says, “plus a huge crash in hotel development and renovation. We may have hit bottom. However the upswing in hotel and casino revenues will remain flat for at least two years. Growth will take a long time, as people want more value for less money. Some prices must decrease to a more realistic expectation. A strong brand will always succeed, but it may need a new water mark in the industry.”

The current economy has had a devastating impact on the gaming industry. This year, we’ve gathered 19 architects, designers, builders and casino executives who explain how they plan to survive (and, for some, thrive) during these challenging times.

They will explain how their companies plan to gain significant market share when the economy improves. Where and how their companies are spending precious resources to improve service, design and other professional skills. How they add value to their clients and customers, and how some operators have aggressively expanded their customer base. Why some believe mega-resorts will remain strong while others see something different on the horizon.

There are many commonly shared insights from this leadership group worth noting. Many of the companies have survived other economic downturns and are, once again, adjusting their businesses accordingly (staff reductions, fine-tuning their sound business practices, diversifying their product types, keeping expenses down and cash flow stable). Most believe that Indian gaming will remain active, with local casinos starting to design and plan for new developments. There are also divergent opinions about the look and feel of mega-resorts and their viability as a venue into the future. At least one company is actually experiencing an incredibly profitable, best-ever year, and at least one firm’s leaders have opened their minds to explore design/build relationships.

Some say gaming will never be what it has been for the last 15 years or so. What is true is that we provide an escape from the humdrum of everyday. Our customers enjoy, if not yearn for, the entertainment experience we all design, build and operate-and shall do so into the future.

My thanks to all who took the time from their busy schedules to send us the responses to our questions.

-Julie Brinkerhoff Jacobs

Casino Design: As a gaming professional, what actions are you taking to survive (and possibly thrive) through this challenging business cycle? Are you reinventing your company or yourself to meet the current business climate?

JOEL BERGMAN: Inasmuch as several projects have not gone forward, BWA has taken the opportunity to re-evaluate its entire staffing needs. We have streamlined our production teams to be more efficient; we have increased a number of Revitt-competent teams; and, we have increased internal educational programs so as the economic and business environment changes, BWA will be poised to meet not only the current economic and business climate, but also the future business climate. Fortunately, BWA has several ongoing client relationships which have helped us through the current business cycle.

DON BRINKERHOFF: We are doing some incidental gaming remodels and additions on projects supplemental to existing facilities. We have also tightened our purse strings, have no debt on the business and own our building outright. We are working a great deal in Asia, which we owe to our highly visible projects in Las Vegas that have been visited by our Asian clients.

KIM DAOUST: No matter what we do when it comes to cutting back on some of our costs, we want to make sure that we never stop advertising. Many design companies actually tend to see the advertising budget as the easy option for budget cuts, because it is something that can be cut back overnight. But it is during these bad times that you want to actually capture the hearts and minds of consumers, and to do this you are going to need to advertise. In fact, many robust businesses actually increase their advertising during a recession.

BRETT EWING: We are very progressive in the use of technology (especially with our multiple offices), and we are leveraging it to the next level. We are implementing BIM (Building Information Modeling) as well as anyone in our market. Not only do our clients appreciate it; our contractors are seeing tremendous value in BIM when the entire project team is on board.

MIKE MECCA: Given the current economic environment, at Galaxy0 we have reviewed each and every program within the business, with the aim of identifying more efficient ways to achieve the desired result. We have identified significant savings across the business, and implemented procedures to capture these savings. This will deliver HKD $200 million in savings per annum. Further, we have closely reviewed our customers’ play and have instituted a program that focuses on delivering profitable play as distinct to focusing on just volume of play. Over the past year the Macau VIP gaming volumes have been down 22 percent, while Galaxy’s VIP volumes are up 17 percent. Finally, we have beefed up our service standard to an even higher level, to ensure repeat business from our valued customers.

AL MOSLEY: Make sure you are running your company and your property as efficiently as possible. Make sure you look carefully at your business plan and company strategy to make sure it works in this current economic environment. After the first quarter, we scrutinized each department and adjusted them as we saw fit. We are proactively targeting our main customer base and, as a result, we have seen business grow in a positive direction since December. It is still down from projections, but it is stabilizing. We have also found that a destination casino resort can intimidate our local customers, so be prepared to address their concerns, whatever they may be. We have also expanded our local customer base from nearby to include a one-hour drive market, all the way to Albuquerque. In addition, our decision to use Hilton has proven to be most beneficial for the hotel/resort portion of the property.

DICK RIZZO: We are finishing what we have on the books. It’s also been our best year ever. Our biggest challenge is making sure the projects get funded, and then completing them on time. We have a $3 billion backlog to finish before the end of the year. As we look forward, how can we help our clients finish their projects? We are preparing a white paper, which will examine how our clients can properly receive some of the stimulus package (the non-gaming amenities) money. This white paper will also examine how much money is available. There are approximately 30-40 financial institutions that will provide funding. We want to identify the ones that can assist our clients.

KELLY STECHSCHULTE: Illuminating Concepts has always remained as diverse as possible with regard to the type of project or industries that we work in, allowing us to not rely on a sole industry for a source of business. That said, IC is very active in the gaming industry, with large projects progressing through financing difficulties and some that have temporarily stalled. Our experience in the implementation of large-scale projects has enabled our team to work directly with the project owners, manufacturers and contracting teams to develop cost savings and appropriate installation methods that benefit the overall project budget. In these difficult times, we have found that the strong relationships we have developed through a vast number of successful projects have been of great benefit as we have pursued peer review and value engineering processes.

DAVID STEWART: Our strategies remain focused on value-driven amenities and guest satisfaction. While we believe there is convincing evidence of challenging economic conditions and outlook, gamers continue to look for experiential relief and value. Customers are taking a harder look at where they spend their gaming wallet, which, we believe, provides opportunity for good operators. In addition, we are looking at every dollar spent to ensure it is allocated and aligned to influence customer decision-making and drive traffic.

In your opinion, will the mega-resort still be a viable gaming venue in the future? If not, what will future gaming development look like?

CHUCK BRAGITIKOS: The fundamentals are still the fundamentals, with market potential, demographics, tax environments and competitive landscape determining the appropriate scale of project. Certain markets can support, and in fact, call for large-scale destination projects. The balance sheets of most gaming companies, however, will preclude these developments for the near and mid term. I suppose there could be some new better-capitalized entrants into the market, but it’s not at all clear who these might be.

LEE CAGLEY: Sure, but it has to be understood by the mega-resort operator who the customer is. If a large resort is not able to deliver value and customer service that exceed the expectations of a very discriminating and fickle younger audience, it won’t survive. If not, what will future gaming development look like? It will be local, highly focused on service and rewards, socially open, niche-oriented and very tech-savvy.

EWING: I believe the mega-resort product will continue to develop, especially as gaming continues to expand in regions where the environment has something to complement the resort—outside of its walls. You are going to see more partnerships in the future. Our project examples are Buffalo Thunder in Santa Fe, which is a Hilton brand; and our recently opened Cherokee project in Tulsa, which has been re-branded as a Hard Rock.

BRAD FRIEDMUTTER: While the mega-resort model may not soon be replicated, the already-existing properties provide a tremendous amount of infrastructure that will continue to generate the need for growth and renovation within their own properties and any surrounding properties, as they respond to the regional demands. The amenity-rich property is here to stay, as the expectations and level of sophistication of the consumer continue to broaden, and this will continue to be translated into smaller boutique properties, as well as much larger resorts.

KIRK HARMAN: The most viable projects today are the smaller-scale expansions, local casinos and racinos, particularly in the jurisdictions where gaming has only recently been passed. As it becomes more difficult to raise tax dollars, states are stepping into or stepping up their participation in gaming. The first round of recovery in gaming construction looks to be in these smaller projects. It may take a few years before the mega-resort projects appear again but if the established gaming towns like Las Vegas and Atlantic City are to survive the competition for business, they will need to attract the travelers and remain destination towns.

PAUL HERETAKIS: I feel that there will always be a need for a mega-resort, but they will probably dwindle down to a few popular vacation destination markets. I believe that the smaller gaming venues that are geared toward locals will begin to take over. These properties tend to offer all of the same food and entertainment venues, but it’s more convenient. “Stay-cations” are becoming the status quo. Folks can get in and get out, for very little money, have just as much fun, and they don’t have to leave town.

KEN KULAS: We’re sensing that the approach to mega-resorts will no longer be the once-familiar projects. Venues that seem to have individuality and bits of history will somehow magically be ganged together to produce a single area to draw customers. With that thought, we are working to diversify our business by focusing even more on prospects outside of the gaming industry. We are looking to the club owners, restaurant groups and commercial office building owners. In doing so, we are directing our marketing materials to appeal to this market and making potential clients aware of our strengths in these areas of design.

MECCA: We are continuing to build Galaxy Macau-Cotai. To date we have invested HKD $4 billion, and this year we will invest a further HKD $2 billion. We are fully committed to and believe in our Cotai project. At Cotai we are developing a fully integrated casino resort, with three different hotels—each hotel offering a different price point, experience, service standard and level of luxury. As a corporation, Galaxy has always been focused on ROI. We do not believe in over-investing in a property. Our aim is to deliver affordable luxury. As an example, not all customers want 24 carat gold bathroom fittings. But customers still want an experience, attention and service. We are confident that the Galaxy project will deliver a healthy ROI.

What markets, either domestic or international, seem to be gearing up for the next wave of development? Are there any areas of business that are proceeding that are not directly gaming, but are affiliated with gaming companies?

TOM HOSKENS: Emerging gaming, as always, is the best bet. We see tremendous potential both nationally and internationally beyond the established markets. Emerging gaming markets in other Southeast Asian countries and in Latin America represent new opportunities, and we are exploring these potentials with our established network of clients and consultants. Whether national or international, regional markets with near monopolies are strong contenders for growth. Regional destinations with small tax implications are also potential markets of development. Business opportunities drive these decisions.

MECCA: Within Asia there are a number of countries that are actively moving forward with major resorts, even in the current economic environment. These include Macau, Singapore, Vietnam, Korea and the Philippines. In the near future, it is expected that other resorts will be announced. Please keep in mind that these integrated resorts are extremely large, and the lead time to bring a project on line makes it a multi-year task. The current projects are looking toward the future, realizing that the current economic environment will pass in time.

MOSLEY: I read the newspapers every morning to see what’s going on. I believe there are some international markets that are still going strong. But domestically, gaming is very, very slow. Even if you wanted to expand or start new projects, money is so expensive that it is cost-prohibitive.

ETHAN NELSON: Asia remains strong. We anticipate the continued emergence of South American economies.

RIZZO: Native American projects are strong—particularly in California and Florida. Lots of discussions are going on right now, and expansion plans are defiantly moving forward. Native American opportunities in New York are also likely to move forward. States will aggressively pursue gaming work now to offset their budget deficits.

MICHAEL STEWART: There is potential all over the world for future gaming and hospitality projects. Gaming is obviously restricted in numerous areas. However, that is changing on a daily basis, and you need to stay aware of where potential new markets are opening up.

TOM SYKES: The reduction in scale of casino-oriented hospitality projects, the mandate of regional identity, quality design and superior service may very well lead to more projects, but smaller scale, clustered for critical mass, individually owned and operated for market protection, cooperative in their marketing program and vicious about their amenities versus their neighbor’s.

How important has it become to work closely with other companies, such as design consultants, builders or competitors, to make sure that you get a share of the business that still exists?

DIKE BACON: Success in this business is often a direct result of relationships and intelligence sharing. We have many vertical (non-competitor) and horizontal (competitor) business partners in the industry that have been and will continue to be critical to our success. The aggressive and strategic leverage of the right partnerships will define the industry leaders of the future.

CAGLEY: We believe it’s more important to have a great reputation than great connections. We have served our core customers well, and produced designs that have stood the test of time and utility, and the business that is starting up again will go to those who can deliver originality without sacrificing practicality.

FRIEDMUTTER: The nature of our industry and the philosophy of our company have always been to embrace teamwork and collaboration in order to produce the most successful project outcome. We provide everything from core and shell architectural design through interior fit-out to providing a singular service, such as executive architect, and coordinating with a variety of additional designers. It has always been very important to work with our consultants and colleagues in a cooperative fashion, and we have found great success and satisfaction in forming these relationships, thereby providing the client with the most comprehensive, knowledgeable and proven team available. In today’s climate, it continues to be vitally important to work together to ensure our collective ongoing success.

HERETAKIS: I believe that it is very important to maintain open relations with fellow companies/consultants and competitors. Budgets for projects have become limited, and they force architects and builders to be on the same page, working closely in order to maintain the budgets. We all must be partners in order to make projects successful.

KULAS: Developing trust with your colleagues that share the same industry is very important. We have always maintained the philosophy that a cohesive and proactive team that works well with each other will create a better product that the client/owner can appreciate and be proud of. Additionally, other businesses that know of your capabilities, and vice versa, allow recommendations for work to be voiced confidently. In looking to the future, we project that budgets and timelines will become even tighter. Because of this, we think owners will want to put together a design/build team that has either worked together in the past or has a reputation of working well with others to carry out the design goals of the project.

STECHSCHULTE: Active networking and maintaining strong relationships has always been of high priority, regardless of the financial situation; our future work is fully dependent on these relationships and the success of each project. Specifically with MGM’s CityCenter project, IC’s role as executive lighting consultant has allowed us to work at a level with the owner, architects, contractors and designers that is far from typical. Responsibilities such as peer review, design coordination, value engineering and procurement direction have resulted in IC achieving the confidence of our clients and collaborators, which we hope will lead to more widespread consideration for future projects, including those that require a cost-conscious but high level of design.

SYKES: For so long, we all preached the focus change of casino development to the broader venue of entertainment. Entertainment is ever refreshing, continuously creative and, while familiar, always in change. It worked. The casino industry is truly the entertainment industry today, which is exactly why we are all suffering together. While casinos are somewhat recession-proof, entertainment venues are the first to fall. We should not regret the victory of entertainment, but we should mature with wisdom, magnitude and quality of our investments. As such, we have all learned collaboration cooperation. Empowering each other with the opportunity to contribute our particular talents always enriches a project, always allows the client to get the best of what we all have to offer, humbles all of us and can result in some really great work. Profits will follow a healthy process.

Any prediction you would like to make about when this business cycle is likely to improve?

BRINKERHOFF: When lending begins to loosen up. We are also in dialogues with gaming clients that are working at starting initial designs again before the end of the year.

HARMAN: Stimulating the economy through government agencies is a bit like putting out a fire with a hose that is riddled with holes. No matter how much water goes in the one end, only a small fraction actually comes out the other. Government is a non-producer of GDP. Funds are wasted on bureaucracy and trickle into the economy where the real work gets done. The gaming and resort industry relies on disposable income. People need jobs and confidence to part with disposable income. Small business accounts for some 80 percent of employment in this country. The government’s stimulus efforts have concentrated on big business and government so far. Nothing is working its way to the real employers in the economy, small business owners. (Which includes most design firms.)

HOSKENS: The business cycle tipping point will vary with each region. Some markets are starting to see the first signs of life. International emerging markets will re-energize first; U.S. emerging markets will continue their slow climb out of the recession. The last markets to resume development beyond renovations will likely be Las Vegas (still overbuilt) and Atlantic City (a perfect time for reinvention for those with perseverance).

MECCA: Regardless of the economy, people still want to have an enjoyable experience, and if a corporation has carefully managed its capital investment, then the project should still be in a position to deliver a suitable ROI, even today.

MOSLEY: I think that the leisure business will lag somewhat before the vacation travel will kick in again. Once things pick up economically, people may loosen their pocketbooks. For now, people are still saving their dollars and have a “wait and see” attitude.

NELSON: The current economic downturn has highlighted the complexity of the global economy. We are noticing multiple economies emerge. In some regions, the downturn has been modes, and recovery is already in sight. In others, the downturn has been more structural. While we anticipate that it will be some time before there is a consensus that the current economic challenges are behind us, there are ample opportunities for those who are willing to seize all available opportunities.

PARTICIPANTS:

Dike Bacon is a principal and director of planning and development of Hnedak Bobo Group, and is focused on influencing and aligning the firm’s expertise, multi-disciplines and national presence with client objectives and vision. His experience spans 30 years and supports his leadership balancing dynamic programmatic objectives with market-focused economics. Clients leverage his extensive industry knowledge to make sound strategic and tactical decisions from concept to completion. Bacon’s project experience includes major hospitality/entertainment resorts throughout the U.S.

Joel Bergman, co-founder of Bergman Walls, began his career with the legendary architect Martin Stern, Jr., who defined the Las Vegas skyline with such projects as Hilton International, the Sands Resort Hotel, Sahara Hotel Casino and MGM Grand Hotel, among others. Bergman worked as Steve Wynn’s in-house architect, creating the Mirage, Treasure Island and the Golden Nugget properties in Las Vegas, Atlantic City and Laughlin. Bergman has successfully proven to be a leader in architectural master-planning and design with projects like Fontainebleau Las Vegas, Caesars Palace Las Vegas, L’Auberge du Lac Louisiana, Barona Valley Ranch San Diego, Snoqualmie Casino Washington, Paris Las Vegas and many others.

Chuck Bragitikos, principal with Vibrant Development, has worked with gaming companies, REITs, private developers, professional sports teams and the public sector on conceiving and developing retail, dining and entertainment destinations. Bragitikos’ current gaming work includes acting as strategic adviser and owner’s representative for Revel Entertainment and Morgan Stanley on the development of a $2.5 billion resort in Atlantic City. Bragitikos has a passion for creating strategic partnerships for the implementation of development projects.  He has worked with a wide range of development companies and is a graduate of the Wharton School of Business at the University of Pennsylvania.

Don Brinkerhoff, as chairman and CEO, guides Lifescapes International’s award-winning landscape architectural design team on virtually all projects worldwide. He received his profession’s highest honor when he became a fellow in 1998 of the American Society of Landscape Architects. His industry contributions include landscape terminology (“softscape,” “hardscape”) and cobblestone-patterned concrete paving (now an industry standard). Brinkerhoff received the American Gaming Association’s Sarno Award in 2006.

Lee Cagley is one of the principals of Cagley & Tanner, an award-winning Las Vegas-based interior design firm specializing in hospitality, leisure, wellness and resort design worldwide. Cagley & Tanner’s work for the Flamingo Las Vegas was recently rewarded as the only gaming hotel worldwide listed in Travel and Leisure’s book of The World’s Greatest Hotels, Resorts, and Spas. Cagley has been a practicing interior designer and industry leader for over 30 years, and was recently appointed as the director of the interior design curriculum for the College of Design at Iowa State University.

Kimberly Daoust is principal and partner at Tandem, a Las Vegas-based interior design firm she co-founded in 2005. Daoust oversees client relations and serves as the team’s visionary, creating architecturally exciting interiors and well-planned spaces with thoughtful, imaginative finishes that incorporate clients’ creative concepts. Daoust offers more than 13 years of industry experience. Prior to founding Tandem, she oversaw and executed an array of interior design projects while working as creative director of interior design at Steelman Partners, and before that as senior project interior designer at Friedmutter Group.

Brett K. Ewing is a partner with Thalden Boyd Emery Architects. Prior to joining the firm, Ewing served as president of architecture and interior design for Marnell Corrao Associates for over seven years, and has worked on impressive projects on the Las Vegas Strip. Ewing complements Thalden Boyd Emery Architects with his more than 25 years of experience in the gaming, hospitality and entertainment industry.

Brad Friedmutter, AIA, is founder and CEO of Friedmutter Group and a graduate of Cooper Union School of Architecture. In the hospitality industry for more than 35 years, Friedmutter worked as vice president of design and construction for Steve Wynn and Mirage Resorts, Inc., and as vice president of design and construction for Bally’s Entertainment. Friedmutter Group was incorporated in 1992, and provides architecture, themed design, master planning, interior design and branding services, for hospitality and gaming projects throughout the United States.

D. Kirk Harman is president and managing principal of the Harman Group. Harman leads the operation of the company which he co-founded in 1984 as Cagley Harman & Associates. The Harman Group provides full structural engineering services for a variety of building types including gaming, hospitality and entertainment. The firm also has an in-house parking design team, providing full-service planning and design for parking structures. Recent projects of note include the 5.5 million-square-foot Revel Casino Resort and the 42-story Chairman Tower at Trump Taj Mahal in Atlantic City.

Paul Heretakis, RA, vice president of WESTAR Architects, has over 15 years of experience overseeing hospitality design and mixed-use, master-planning projects throughout the world. WESTAR Architects is a key player in the hospitality design field, and has worked with some of the largest gaming companies in the industry-Las Vegas Sands, MGM Mirage, Harrah’s Entertainment, Penn National Gaming, Trump Entertainment and others. His portfolio includes over 1,000 casino, restaurant, retail and hotel projects.

Tom Hoskens, a principal with the Cuningham Group, has over 30 years of experience in architecture with an emphasis on casinos, hotels and entertainment. He was principal-in-charge for $3 billion worth of destination resort design in the last four years alone. Hoskens’ commitment to client satisfaction includes highly responsive architectural and engineering teams. “Each team responds directly to the client to help drive clarity of communication and accuracy of information,” he says, ensuring large-scale, complex projects are completed on time and within budget.

Ken Kulas was a part of the MGM Mirage Resorts in-house design team for almost 10 years. In 2000, Kulas partnered with Ann Fleming to form Cleo Design. Right out of the gate they completed two Seminole Hard Rock Casinos within just a few years. This experience, combined with the knowledge from MGM Mirage, set the pace for the successful completion of Indiana Live! Casino, The Rivers Casino, and the 2008 G2E award-winning MGM Detroit Grand Casino.

Michael Mecca is president and chief operating officer of Galaxy Entertainment Group, which operates casinos in Macau. He was previously president and chief executive officer of OpBiz, which has operated Planet Hollywood Casino Hotel in Las Vegas since May 2003. Mecca has over 30 years of experience in the hotel and gaming industries, including leadership positions at Green Valley Ranch, Greektown Casino, Mandalay Bay and others. Mecca managed the development of the Crown Casino in Melbourne, Australia, one of the largest casinos in the world.

Allen F. Mosley is chief executive officer for the Pueblo of Pojoaque in Santa Fe, New Mexico. Mosley received his bachelor of arts degree in Business Administration from New Mexico State University. He has almost 30 years experience in the areas of accounting, management and financial planning, obtaining loans, budget preparation and implementation and investment banking. In 1996, Mosley was hired by the Pueblo of Pojoaque to oversee the financial operation of all business and development, including a horseracing track in Santa Fe.

Ethan S. Nelson, AIA, is president of Steelman Partners, overseeing project delivery, business development and operations. He is also responsible for implementing many aspects of the firm’s strategic plan. Nelson’s varied expertise has contributed to the successful execution of numerous projects for a client list that includes MGM Mirage, Station Casinos, Hard Rock, the Venetian and Harrah’s Entertainment. He received a bachelor of arts degree from Haverford College and a master of architecture degree from Columbia University.

Dick Rizzo is vice chairman of the Perini Building Company. He is responsible for market planning and research at Perini, and oversees marketing strategies with particular emphasis on developing national clients. With more than 40 years of experience, Rizzo helped steer Perini into the hospitality and gaming industry. It has since become the nation’s largest builder of hospitality and gaming projects, with a project list that includes Paris Las Vegas, Caesars Palace and Trump International. Perini is currently building MGM Mirage’s CityCenter.

Kelly Stechschulte is a design director at Illuminating Concepts, a full-service lighting and multimedia design firm located in Farmington Hills, Michigan. Stechschulte is currently leading IC’s design team in its massive role as executive lighting consultant for MGM Mirage’s CityCenter Project in Las Vegas, which is scheduled for completion in December. During Stechschulte’s 15 years with IC, she has led the design of a wide range of award-winning projects nationally and internationally for top brands such as Audi of North America, Saks Inc., Nike and Westin Hotels.

David Stewart is the president and chief executive officer of Cherokee Nation Entertainment, LLC, the wholly owned tribal company that manages and operates the gaming, retail, hospitality and entertainment enterprises of the Cherokee Nation. CNE operates seven casinos and a racetrack, and has completed expansions totaling more than $250 million at the various locations. Recently, the company brought the Hard Rock brand to its flagship resort in Tulsa, Oklahoma. Stewart also acts as the chief executive officer of Cherokee Nation Businesses, LLC, which is charged with economic development, business diversification, and providing shared services across the Cherokee Nation’s business entities.

Michael Stewart, AIA, is associate architect and director of Asian operations for YWS. He is an award-winning designer who has extensive experience with large-scale projects including Bellagio, Treasure Island and M Resort in Las Vegas; Borgata in Atlantic City; and the Sandia Hotel & Casino in New Mexico. Among his many national awards are Global Gaming Expo’s 2003 Best Design Project over $250 Million and Hospitality Magazine’s 2005 Hospy Award for the Best Suites and Best Spa.

Thomas J. Sykes, AIA, PP, has over 30 years of experience in hospitality design. In 1979, he founded the firm that has since grown into SOSH Architects, and his vision has taken the firm from a solo practice to a firm of more than 75 design professionals and support personnel. SOSH has extensive experience in hospitality and gaming design, and has served major hospitality companies worldwide including Caesars/Harrahs, Trump, MGM, Seneca Nation, Revel Entertainment, Hard Rock, Disney ESPN, Sofitel, Novotel, Storm International, Mohegan Sun, Isle of Capri and many others.