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Will new slots casinos have a ripple effect?
Meadows reaches out to neighboring companies in hopes of building goodwill
Sunday, June 24, 2007


Darrell Sapp, Post-Gazette
Gamblers hit the slot machines at the new Meadows Racetrack & Casino in Washington County.
Click photo for larger image.

Some weeks ago, a couple of executives from The Meadows Racetrack & Casino in Washington County strolled into Bella Colore Salon & Spa and bought thousands of dollars worth of gift cards, 200 of them in all, to be doled out to frequent gamblers at the racetrack's brand new slots casino.

"That's 200 new clients," said Roberta Williams, owner of the salon, about a half-mile from the casino. "I'm thrilled about it."

It's that sort of goodwill that The Meadows hopes to engender among nearby retail businesses and service vendors from Washington and Allegheny counties. Partly out of convenience, partly because it wants to be a good corporate neighbor, The Meadows is reaching out to local companies.

"Since day one, Cannery Casino Resorts [the Las Vegas-based owner of The Meadows] has focused on working with as many local companies and vendors as possible," said David La Torre, who handles public relations for The Meadows. "Everything from our construction services to the napkins in our restaurants have all come from local companies."

Not to mention the toilet paper and the rest of the janitorial supplies. The Meadows harness racetrack has had a long-standing relationship with Steratore Sanitary Supply, based in Eighty Four. When word came that The Meadows would be opening a casino, Steratore wanted in on it.

"It's an account obviously you'd like to have," said Tony Steratore, who started the supply business with his brother two decades ago. "We're a small family business. We're always looking to grow."

For business suppliers, the opening of the casino two weeks ago was the culmination of a months-long process. Companies of any stripe, in order to do business with a casino, had to post a $2,000 upfront fee and submit to a background check by the Pennsylvania Gaming Control Board.

That certification process took at least six months and up to a year for most of the companies, but it was worth it. John Dziak, chief executive of Washington Reprographics, says The Meadows and its casino now account for 2 to 3 percent of his business.

"They are definitely one of our better customers right now," he said. "I'm down there almost every day." Washington Reprographics designs signs, graphics and even printed the engineering blueprints for the casino. For The Meadows it might be asked to supply restroom signs or outdoor signs pointing the way to the bus lots.

"It should be good long-term business for us," Mr. Dziak said.

Same goes for Sunfresh Food Service of Pittsburgh, which is providing produce and dairy; a T-shirt shop in Bridgeville, which is supplying the souvenir trappings; and Engineered Communications, which provides all of the two-way radios for the employees working the gaming floor, security, caterers, even the valets.

That's the supply side of things. On the retail side, the relationship is more tenuous, and a casino's arrival is often met with mixed feelings -- hopes that increased out-of-town traffic might lead to a spike in sales, and concerns that the casino will consume whatever discretionary income those visitors might have in their pockets.

That's why promotional gestures, such as the buying of hundreds of salon gift certificates, are appreciated. The Meadows also has been snapping up gift cards for the local chains -- frequent casino players can expect gift certificates for Darden Restaurants, which owns the Olive Garden and Red Lobster. They might also receive comps for Bruster's ice cream, Home Depot, Wal-Mart and several "neighborhood partners," including Angelo's restaurant on West Chestnut Street in Washington.

There are other, tacit methods of supporting local businesses, said the casino's general manager, Mike Graninger.

"We chose to charge for drinks," he said.

Sounds like a small deal, until you consider that most casinos give away free booze. A common fear among restaurants and bars located near a casino, any casino, is that the casino's liberal policy on complimentary drinks will reduce bar traffic elsewhere. "We have a lot of tavern owners around here who would have been really hurt if we gave away free drinks," Mr. Graninger said.

He added that the casino is still looking for other businesses to partner with, either as a supplier or in a more cross-promotional way. Marc Alfano is executive chef and owner of the mansion-like Alfano's at The Quail restaurant, which is around the corner from The Meadows. He's made contact with the casino and its general manager, Mr. Graninger, about appearing on the casino's list of comp choices, but so far, no dice.

But he's holding out hope that something can be arranged. Even if Meadows customers don't visit his restaurant on the same day they are gambling, the word of mouth would be valuable.

"It makes people aware that you're there, he said. "I'm really right next door."

First published on June 23, 2007 at 8:24 pm
Bill Toland can be reached at btoland@post-gazette.com or 412-263-2625.
Read the PG's Casino Journal by Bill Toland
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