River Rock brings in record revenue in '07

River Rock Casino posted a record $139.4 million in revenue in 2007, pulling in more than $380,000 a day with a marketing blitz and slot machine upgrades, officials at the Alexander Valley casino said Monday.

Meanwhile, an agreement last month between River Rock's tribal owners and Sonoma County paves the way for a destination resort at the hillside casino near Geyserville, CEO Shawn Smyth told financial analysts Monday.

"We remain very excited about our plans to build a new destination resort to replace the current casino, and continue to evaluate the best strategy for financing this project," Smyth said.

In a filing Monday with U.S. securities regulators, the Dry Creek Rancheria Band of Pomo Indians said it expects to open a hotel within two or three years.

The tribe hasn't finalized the cost of the project, but earlier reports placed it at around $300 million. The start date for the project has not yet been set, Smyth said.

"We're meeting with our financial and legal advisors," he said. "There's nothing certain in the financial markets right now, but we're anxious to get in the ground."

The casino is now located inside two dome-like temporary structures on the tribe's 75-acre reservation. The business has 680 full- and part-time employees.

The tribe plans to build a 1.5 million-square-foot Tuscan-style village with a permanent casino, 260 hotel rooms, restaurants, pool, spa, meeting rooms and other amenities.

The casino's business has grown steadily since River Rock opened in September 2002. Last year, revenues rose 6.7 percent from 2006, when River Rock took in $130.6 million. Income before distributions to the tribe was $20.7 million, compared to $20.2 million in 2006.

The casino paid $12.4 million to the 947-member tribe last year. The money goes to tribal programs and adult members.

Fourth-quarter revenue rose 3.2 percent to $35.5 million, up from $34.4 million during the same period a year ago.

River Rock has installed progressive slot machines that pay higher jackpots and encourage players to stay longer. It also boosted spending on marketing, promotions and incentives in 2007, including auto, vacation and cash giveaways.

More than 96 percent of the casino's revenue came from gaming, with most of that amount generated by its 1,570 slot and poker machines. The casino's daily "win" per slot machine -- the difference between what it took in and paid out -- grew from $194 in 2006 to $207 last year.

The casino also offers 22 table games.

Under last month's settlement between the Dry Creek tribe and Sonoma County leaders, the tribe pledged to pay the county up to $75 million over the next 12 years for impacts of its planned expansion.

The county agreed to provide law enforcement and fire services to the project and dropped its opposition to a liquor license for the casino, after the tribe agreed to limit the hours of alcohol sales.

The Alexander Valley Association, a neighborhood group that has fought the casino's attempts to sell liquor, also dropped its opposition as part of the settlement.

"This agreement will have significant positive impacts on our business as well as our ability to develop our expansion plans and construct our proposed hotel and and casino resort," Smyth said.

You can reach Staff Writer Steve Hart at 521-5205 or steve.hart@pressdemocrat.com.