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Casinos
Eastside Cannery joins tough market on Boulder Highway
By Jeff Simpson / Executive Editor

I got my start in this market as a casino business reporter and, given the importance of gaming in Las Vegas, I try to keep close tabs on the resort business.

One of the most exciting responsibilities of a Las Vegas gaming reporter is covering the opening of new casinos.

Whether or not the owners allowed me a sneak peek at the properties before the public opening, the actual openings have always been worthwhile events.

I could see - and report - the public's response to the new casino, check out the operation of the restaurants, gaming areas and entertainment venues and evaluate how well the opening was planned.

Since arriving in Las Vegas in 1999 I've attended openings at Paris Las Vegas, Aladdin, Suncoast, Terrible's, Palms, Green Valley Ranch Station, Cannery, Wynn Las Vegas, South Point and Red Rock Resort.

A view of the Eastside Cannery's casino floor before the doors opened Aug. 28.
ULF BUCHHOLZ / RESEARCH DIRECTOR

I also was able to attend one opening outside of Las Vegas - far outside - when I traveled to Macau in 2006 for the opening of Wynn Macau.

Aladdin was the biggest disappointment, as the property had failed to gain Clark County safety approvals and was unable to open as scheduled. It had to delay its opening by a day.

Suncoast, Palms, Green Valley Ranch, South Point and Red Rock were all awesome events that wowed their customers as those properties showed off amenities that narrowed the gap between Strip and locals casinos.

Wynn Las Vegas was exciting for me because I had reported on the property's planning and construction from the time Steve Wynn bought the Desert Inn in 2000.

Unfortunately I've missed the last two casino openings in the valley, the soft opening of Palazzo in December (it was unannounced) and last week's Eastside Cannery opening (we sent In Business reporter Rick Velotta to cover it).

An ice sculpture is seen at Eastside Cannery on the property's opening night.
ULF BUCHHOLZ / RESEARCH DIRECTOR

But I didn't stay away from the Eastside Cannery for long. I toured the property the morning after its opening and was surprised by the size of the crowd inside.

The tower's exterior is much different from any other locals casino in the valley. I've driven by the Eastside Cannery at night several times and like the changing colored neon lights that cover the hotel tower.

During the day the tower looks clean and modern, with its saw-toothed roof and yellow piping.

The interior looks like other modern locals casinos, with all of the amenities Las Vegas customers demand.

There was a long line of folks waiting to eat at its cafe and an even longer line waiting to sign up for slot club cards.

Like all new casinos, Eastside Cannery's slot floor enjoys the advantage of having all new machines and therefore has the most up-to-date collection of slots and video poker machines.

The sports book and adjacent deli looked particularly nice, while the poker room looked Spartan with chairs that looked much less comfortable than those offered at the Orleans, Bellagio or Venetian, for example.

Eastside Cannery's restaurants looked good, with a couple of the concepts borrowed from its sister property in North Las Vegas.

One big downside: There is no parking garage. Its competitors Sam's Town, Boulder Station and even Arizona Charlie's Boulder all have parking garages. Surface parking is plentiful, but locals customers want garage parking as well.

Overall I'd say the property's developers got a lot of bang for their $250 million expenditure, a price that seems about right for the Boulder Highway location.

Boulder Highway is a challenging market, as the east side of the valley is already well served by locals casinos and nearby neighborhoods are less affluent than the valley's demographic sweet spots of Summerlin and Green Valley.

It makes sense to evaluate Eastside Cannery's prospects against its neighbors.

Although the new property will undoubtedly steal some business from Sam's Town, its nearest big neighbor, and will likely take smaller chunks from Arizona Charlie's Boulder and Boulder Station, I don't see the property supplanting Boulder Station or Sam's Town as the top dogs on the highway.

Those properties are bigger and have established customers conditioned to playing at their properties. Sam's Town has a wide array of amenities and two parking garages, and Boulder Station has the best location of the four as it is next to the U.S. 95 interchange with Boulder Highway.

I see Eastside Cannery doing enough business to knock Arizona Charlie's Boulder down a peg among the casinos on the highway.

The big beneficiaries of the new opening should be nearby casino customers, as the Eastside Cannery and its neighbors are likely to slug it out on the marketing front as they fight for market share with direct mail offers, slot promotions and cheap meals.

Jeff Simpson is executive editor of In Business Las Vegas. He can be reached at 259-4083 or at simpson@lasvegassun.com.

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