"The big question remains, can gambling revenues continue to grow in a deepening recession? Historically, gambling has been more resistant to recession than other businesses, but the nation's current massive downturn is beginning to challenge even that industry. Nevada casinos have experienced a serious slump, with revenues falling substantially for the last 10 straight months. The recession accounts for part of the downturn, but competition from California's Indian casinos are also having a big impact.

But how much more gambling can California and the Sacramento region absorb? In addition to Red Hawk, there are three other big Indian casinos within easy driving distance of Sacramento: Thunder Valley near Roseville, Cache Creek in Yolo County and Jackson Rancheria in Amador. Thunder Valley has already announced plans to scale back an expansion it planned earlier this year, a sign that a limit may have been reached.

Red Hawk Casino is betting that it can survive the slump and compete successfully against other gambling palaces whether in Nevada or California. Judging by the size of the crowds that have descended in the first few days, Red Hawk has been dealt a good first hand."

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Editorial: A new casino, more questions (The Sacramento Bee 12/20)