2024 has brought its share of ups and downs, with significant macroeconomic challenges affecting many sectors.

Additionally, the numerous snow and ice storms early in the year impacted our business volume, leading us to fall short of our anticipated budget in January. Despite these unexpected setbacks, we’ve managed to thrive outside these challenges through strategic decision-making and unwavering support.

While rural and regional gaming trends have remained flat at best this year, Spirit Mountain Casino has experienced notable successes, affirming that we are on the right path.

As we approach the end of summer, I want to take this opportunity to provide an update on our achievements and areas where we see room for growth and improvement.

Achievements and Highlights

Engagement of Higher-Tier Players

• Thanks to our strategic approach to slot inventory management, innovative promotions, and casino host program, we’ve achieved a 30% increase in engagement among our top three tiers of slot players.
  
  This significant boost reflects our commitment to enhancing the player experience and demonstrates the effectiveness of our targeted efforts in driving deeper connections with our most valued guests.
• The Quarterly VIP dinners have strengthened our relationships with our top-tier guests. These intimate gatherings provide a unique opportunity to connect personally, allowing us to show appreciation for their loyalty while gaining valuable insights into their experiences at our casino.
  
  I attend each of these dinners to enjoy the conversations and actively invite and listen to their feedback. This direct line of communication helps us better understand their needs and preferences, ensuring we can continue to enhance their experience and maintain their loyalty. These dinners are more than just a meal—they are a key component in our strategy to continuously improve and deliver exceptional service to our most valued guests.

Cultivating New Audiences

• Events like the Los Tucanes concert have been instrumental in expanding our connection with new audiences and driving business success. The June concert was a standout, selling out all 2,300 tickets and setting a new record for beverage sales.
  
  Additionally, we saw a significant uptick in gaming revenue that night. The strong attendance and overwhelmingly positive feedback from events like these reinforce their value as key components of our overall business strategy. They enhance our brand’s appeal and contribute meaningfully to our bottom line, demonstrating the power of live entertainment in attracting and engaging diverse audiences.

New Coyote Club Member Signups

• We’re proud of our revamped Coyote Club, which continues to be a success. Year over year, we’ve experienced a 5.9% increase in new member signups.
• As a result of club improvements, we have observed increased carded play, reflecting higher engagement and loyalty among our Players Club members. We achieved a remarkable milestone in July, with 63% of our play being carded—the highest percentage since May 2015. The industry benchmark is that 50% of casino guests are typically expected to be club card members. That we surpassed this benchmark underscores the effectiveness of our loyalty programs and the strong connection we’ve built with our guests, positioning us well above the national average and highlighting the success of our efforts to deepen player commitment.

Excellent External Audit Results

• Our recent external audit delivered excellent results, a testament to our unwavering commitment to operational excellence and integrity. This achievement is especially significant as it validates the rigorous standards we uphold in our daily operations. By consistently excelling in these audits, we demonstrate our dedication to maintaining a transparent and accountable environment and our ability to manage resources effectively and responsibly. We take great pride in this continued success, as it reflects our team’s hard work and reinforces our reputation as a leader in the industry.

Popular Weekend Seafood Fest

• Despite significant price increases to cover the cost of crab, our Seafood Fest remains incredibly popular.
• Average attendance on Fridays and Saturdays continues to be robust, demonstrating the all-you-can-eat option appeal.

Long-Term Planning

• We are engaged in long-term planning exercises with the Board of Directors to ensure Spirit Mountain Casino’s enduring viability. Our focus is on sustainable growth and innovation while maintaining our market share.

Employee Engagement

• In July, we had the pleasure of hosting our annual summer employee picnic, a special event dedicated to celebrating a year of hard work and success. This picnic is unique because it’s the only time employees can invite their families at their workplace, making it an extra special occasion. It was a joyful day filled with delicious food, games and laughter. This gathering highlighted the sense of community that drives our success, and we’re grateful to share it with our extended work family.
• An impressive 86% of our employees achieved perfect attendance, making them eligible for the gas voucher incentive. This initiative has been highly appreciated and has significantly impacted employee behavior, leading to a noticeable reduction in absenteeism. By offering this practical and meaningful reward, we’ve encouraged more consistent attendance and shown our commitment to tangibly supporting our team members. The success of this program highlights the positive outcomes that can be achieved when we align our incentives with the needs and values of our workforce.

Challenges

Increase Low- and Mid-Tier Slot Players

• Our lower and mid-level tier guests have shown a decline in visits and play, reflecting broader economic trends such as reduced consumer spending and record-high consumer debt levels. To address this, we plan to re-engage these slot players to enhance the diversity and vibrancy of our gaming community. By tailoring our offerings and promotions to appeal to this segment, we aim to bring them back and create a more dynamic and inclusive environment for all our guests.

Address Staffing Challenges

• The hospitality industry in larger cities offers many open positions, contributing to a shortage of qualified applicants for our casino. This staffing challenge has resulted in several open positions at our facility. Addressing this shortage is a priority, as we need to maintain the high service standards that our guests expect and deserve.

I feel very optimistic about the second half of the year and excited about the future!