On Sunday, September 8, 2024, Clint Johnson, COO, and I had the privilege of presenting to the General Council of the Confederated Tribes of Grand Ronde. Our presentation outlined key strategies driving Spirit Mountain Casino’s continued success. We emphasized our commitment to creating memorable guest experiences that foster repeat visitation, cultivating a fun and engaging atmosphere, and exceeding expectations—ultimately driving customer loyalty and revenue growth.
We also highlighted the importance of our exceptional team at SMC, stressing the need to foster a work environment where employees feel valued, respected, and empowered to succeed. Ensuring a positive workplace culture is critical to maintaining the high standards we set for guest service and operational excellence.
In addition, we discussed the importance of ensuring our business’s long-term sustainability and financial health. Revenue growth is essential for survival and thriving in an ever-evolving economic landscape.
I want to outline specific areas relevant to the presentation, including our strategic focus on setting clear direction, leveraging the right tools, and utilizing data-driven insights to make informed decisions across all aspects of the gaming business.
Jump to a section of this recap:
Key Elements
To understand Spirit Mountain’s strategic approach, it’s essential to understand the critical elements of how the casino business operates. Gaming is at the core of our business, generating revenue and serving as the foundation for all other casino activities. We concentrate on several critical areas to maintain success and ensure long-term sustainability.
Gaming is our Core Business
Spirit Mountain Casino’s gaming operations are the engine behind our success. We design our slot machines, table games, and other offerings to attract and retain a broad range of guests. However, the gaming industry is highly competitive, and to remain at the forefront, constant innovation, attention to detail, and a deep understanding of our target market are required.
Guests
Our guests are the cornerstone of our business. Ensuring their satisfaction, enjoyment, and loyalty is crucial. We consistently strive to enhance the guest experience through exceptional service, personalized interactions, and tailored offerings that cater to diverse audiences. Whether they are seasoned players or new visitors, we aim to exceed their expectations every time they visit Spirit Mountain.
Communications & Marketing
Effective communications and marketing play a pivotal role in connecting with our guests. We maintain visibility and relevance in an increasingly crowded marketplace through strategic promotions, advertising campaigns, and crowd-drawing events. Our marketing efforts focus on building solid relationships with existing guests while attracting new visitors to experience all that Spirit Mountain Casino offers.
Employees
Our employees are our greatest asset. Each team member, from the frontline staff to senior leaders, contributes to the casino’s success. We prioritize creating a supportive and engaging work environment where employees feel valued and motivated. This commitment to our workforce drives high customer service and guest satisfaction levels.
To support these core areas, we focus on the following key areas:
Relentless Customer Focus: We continuously work to attract new audiences, enhance our offerings with better amenities, maintain premier facilities, and provide competitive loyalty programs that reward our guests for their continued patronage. Our goal is to create a seamless and enjoyable experience that brings people back time and again.
Creative Communications & Marketing: Our marketing efforts center around relevant promotions that appeal to our target audience, alongside crowd-drawing events and entertainment that keep our property exciting and vibrant. We also invest in creative brand awareness initiatives to keep Spirit Mountain Casino at the forefront of both loyal guests and potential newcomers’ minds.
Engaged Employees: To deliver exceptional service, we focus on recruiting, hiring, training, and retaining the best talent. We recognize the importance of rewarding our team, offering rewards and incentives that motivate them to excel in their roles. By fostering a culture of engagement and development, we ensure our employees are empowered to deliver the best experience possible to our guests.
Understanding the key elements of how the casino business operates is fundamental to Spirit Mountain’s strategic approach. At the heart of our strategy is a commitment to consistently identify and meet the needs of our guests, ensuring that we continue to attract new visitors and retain our loyal patrons. Our ability to listen to and respond to guest feedback allows us to provide a gaming and entertainment experience that resonates with a wide range of customer segments.
Customer-Centric Approach
A significant component of our strategy is that we have what our guests want. We create tailored offerings that enhance the overall guest experience by actively engaging with them and understanding their preferences. Whether it’s new gaming options, upgraded amenities, or exclusive promotions, we are focused on capitalizing on different market segments, ensuring each guest receives the attention they seek. This dedication helps us deliver a premier experience that sets Spirit Mountain apart from competitors and keeps our guests coming back.
Relentless Guest Service:
To succeed in today’s competitive environment, relentless guest service is crucial. This means continually attracting new and next-generation guests while maintaining high standards for existing ones. We achieve this by:
- Offering better amenities: Our goal is to ensure our facilities and services meet and exceed guest expectations. Every detail, from upgraded hotel accommodations to exclusive dining options, is designed to enhance the guest experience.
- Building premier facilities: We invest heavily in creating top-tier gaming, entertainment, and hospitality spaces. These facilities are critical in delivering a high-end experience that aligns with our brand promise.
- Delivering a competitive loyalty program: Our loyalty program is designed to reward guests for their patronage while fostering deeper connections with our brand. We offer competitive incentives to ensure that guests feel valued and encouraged to return.
Creative Marketing & Promotions:
Our success also hinges on creative marketing strategies that resonate with both new and existing audiences. Key initiatives include:
- Offering relevant promotions: By staying in tune with guest preferences and market trends, we deliver timely and meaningful promotions that enhance our guests’ overall value proposition.
- Presenting crowd-drawing events and entertainment: We are known for hosting events that attract large audiences, from exclusive concerts to seasonal celebrations. These events boost immediate attendance and elevate our brand profile in the region.
- Creating timely brand awareness initiatives: Through strategic partnerships, advertising campaigns, and digital marketing efforts, we consistently work to keep Spirit Mountain Casino at the top of local and national audiences’ minds. Our brand awareness initiatives ensure that we remain a premier entertainment destination.
Spirit Mountain Casino is well-positioned to continue its growth and success in an ever-evolving gaming landscape by centering our strategy around guest satisfaction, superior facilities, and creative marketing. We design every aspect of our operation to provide guests with an exceptional experience, ensuring they return time and time again.
Who are our Guests?
Understanding the composition of our guest demographic is crucial to shaping Spirit Mountain Casino’s strategic approach. Currently, 47% of our guests are male, while 52% are female, with 1% identifying as non-binary or choosing not to disclose their gender. This distribution gives us valuable insight into how we can tailor our marketing and service efforts to better meet our guests’ preferences.
The age demographic of our patrons primarily falls between 46 and 75 years old. Several factors contribute to this older age group:
- Established Financial Stability: Individuals in this age range typically have greater disposable income due to increased financial stability, often resulting from career progression, retirement savings, and fewer financial obligations compared to younger age groups.
- Leisure Time Availability: Older guests, particularly retirees, generally have more free time for recreational activities like gaming, making them more frequent visitors to our casino.
- Preference for Traditional Gaming: This age group tends to be more attracted to traditional gaming options such as slot machines and table games, which are a core part of our offerings.
- Loyalty and Habit: Over time, guests in this demographic have developed brand loyalty and strong habits, often preferring familiar, comfortable environments like Spirit Mountain that cater to their entertainment preferences.
By understanding these dynamics, we can continue to refine our services and offerings to meet the expectations of our current guests and explore opportunities to attract and retain a broader range of demographics.
Operational Highlights
Gaming Highlights
Slots
We have been intentional about ensuring that our core business has the latest slot machines and titles by continuously refreshing our gaming experience. We replace approximately 15% of our slot floor with the most popular games. This investment ensures our guests access the most cutting-edge games, keeping the experience fresh and engaging.
SMC was the first casino in the West to offer NFL slot machines, introducing the highly anticipated NFL-branded slot machines. These machines draw in sports fans and create an exciting synergy between gaming and football. We celebrated a major milestone this year when a guest won $1.7 million on one of our NFL slot machines. This significant payout demonstrates our machines’ life-changing potential and reinforces our commitment to providing an exceptional gaming experience.
- Reducing Machine Age: By reducing the average age of our machines from 8 years to 4 years, we’ve enhanced the overall gaming experience. Newer machines offer better performance, more dynamic features, and a broader range of game options.
- Introduction of Link Zone: The Link Zone is a popular multi-game linked progressive system that offers players the chance to win larger jackpots while playing their favorite games. Our progressive jackpots, with guaranteed payouts, continue to be a major draw for players seeking large payouts. This feature enhances excitement and keeps guests engaged.
- Top-Performing Games: Approximately 70% of our slot floor consists of top-performing games across all gaming markets, ensuring we provide guests with the best and most sought-after experiences. A recent study suggested that if a guest visits a casino and cannot play on their favorite game, they will spend 70% less than if they can play their favorite.
Table Games
We introduced a new $5 pit with 6/5 Side Bets: $5 table games remain popular due to their accessibility. Including side bets provides additional excitement and opportunities for players to win, making our tables more appealing to casual and seasoned players.
Baccarat: Baccarat has emerged as our second most popular table game after blackjack. Its growing popularity reflects a broader trend in the gaming industry, and we’ve invested in enhancing the player experience at our baccarat tables to capitalize on this demand.
Sportsbook
Our partnership with Bet MGM has been an excellent addition to our sport fanatic guests, especially with the spotlight on college sports betting. This partnership enhances our overall casino offerings.
TopGolf
The addition of TopGolf as an amenity naturally aligns with our sportsbook offerings, appealing to a similar audience demographic. This synergy is expected to provide a comprehensive experience for gaming sports fans.
Marketing Strategy & Success
Just over a year ago, we undertook a major redevelopment of the Coyote Club, our players’ rewards program, from the ground up. This comprehensive restructuring focused on optimizing guest engagement and fostering loyalty among our carded members. By tailoring rewards to meet our guests’ preferences, we have successfully created a system that keeps players coming back while attracting new members.
The results speak for themselves:
- Membership Growth: Year over year, we’ve seen a notable increase in new member signups, further proving the effectiveness of the changes. This growth reflects the successful outreach of our marketing efforts and the appeal of our loyalty program to new and existing guests.
- Record-Breaking Carded Play: In July, we achieved a milestone when 63% of our play was carded, the highest percentage since May 2015. Considering the industry benchmark, where roughly 50% of casino guests are typically expected to be club card members, this achievement underscores the appeal and efficiency of the Coyote Club. We are surpassing industry standards and leading the market in guest loyalty.
- Expanding Through Events: Concerts and Events have played a critical role in increasing our connection with diverse audiences. For example, the Los Tucanes concert in June was a tremendous success, selling out all 2,300 tickets and setting a new record for beverage sales. This event demonstrated our ability to reach new market segments while driving incremental revenue through entertainment offerings.
- Strategic Partnerships: To further our outreach, we’ve partnered with Travel Oregon, aligning our efforts with broader tourism initiatives in the region. Partnerships such as this continue to promote Spirit Mountain as a key destination for visitors interested in gaming and entertainment experiences.
The data shows that we are on the right track in driving loyalty, expanding our audience, and increasing revenue.
Food & Beverage
This past summer, we introduced the Seafood Fest as a seasonal special on Friday and Saturday nights. Due to its overwhelming success, we are excited to announce that we will extend the Seafood Fest year-round. Our guests have responded enthusiastically to this offering, especially the all-you-can-eat option, which has consistently drawn strong attendance each weekend.
Despite the rising costs of crab and other seafood, we have successfully adjusted our pricing while maintaining the event’s popularity. The continued robust attendance on both Fridays and Saturdays speaks to the enduring appeal of premium dining experiences.
Additionally, we’ve made some strategic adjustments to enhance our Monday Night Elders Dinner by moving it into the Rogue River Room, a change that has been met with much appreciation and positive feedback from our tribal elder guests.
The Spirit Mountain Wine Label has gained significant traction within our community. Our wine label has begun to emerge as the wine of choice at many local events and galas, further solidifying its reputation. This increased visibility is a testament to our dedication to offering exceptional local products that resonate with guests and enhance our brand.
Through these efforts, we continue to elevate the culinary and beverage experience at Spirit Mountain Casino.
Facilities
At Spirit Mountain Casino, we are committed to continually maintaining and enhancing our facilities to ensure a premier experience for all guests. Our recent developments underscore our dedication to both entertainment and guest convenience.
- RV Park & Park Models: Our RV Park has been expanded and upgraded to provide guests with a more modern and comfortable stay. In addition to traditional RV spots, we now offer Park Models, providing more luxurious, cabin-style accommodations. This allows us to serve a broader spectrum of visitors, including those who seek a home-away-from-home feel while enjoying our casino and entertainment offerings.
- Electric Car Chargers: Recognizing the growing demand for eco-friendly travel options, we have installed electric car charging stations to accommodate better guests who drive electric vehicles. This initiative aligns with our commitment to sustainability and ensures we remain competitive in offering green, forward-thinking amenities.
- Parking Lot Paving: We have completed significant parking lot paving projects to improve guest convenience and enhance the overall arrival experience. These upgrades not only make parking more accessible and efficient but also contribute to the aesthetics and safety of the property. Well-maintained parking facilities demonstrate our attention to detail and commitment to offering a first-class experience from the moment guests arrive.
These facility enhancements reflect our focus on innovation and guest satisfaction, ensuring that we continue to meet the evolving expectations of our diverse audience while maintaining our position as a leading entertainment destination.
Hotel
Completing our hotel remodel, coupled with new technology, has significantly enhanced the guest experience and contributed to strong growth in occupancy rates and associated gaming revenue. Our focus on delivering exceptional service has positioned the hotel to cater to our gaming guests.
We have seen an impressive increase in cash room bookings, with a 10% rise compared to the previous year. This demand has driven a 6% increase in occupancy rates, a testament to the appeal of our updated rooms and amenities.
This surge in bookings has also significantly impacted our gaming revenue. Year-to-date, we have recorded an increase in associated gaming revenue, representing a 26% growth year over year. This is a direct result of more gaming guests choosing to stay with us and continuing to enjoy their gaming experience longer.
Our occupancy rates continue to climb, with year-to-date occupancy at 73%, up from 71% last year. This growth is especially noteworthy given that we now have more rooms available, allowing us to meet the increasing demand for accommodations. In August alone, we achieved an 83% occupancy rate, underscoring the popularity of our hotel as a destination for both new and returning guests.
A portion of our success can be attributed to the connection between our hotel stays and gaming revenue. We have experienced a 73% increase in gamblers staying in our rooms compared to last year. This is a crucial factor in our growth, as guests who stay with us are more likely to engage with our gaming and entertainment offerings, making the hotel an essential revenue driver for the casino.
Our ability to leverage data and technology has been instrumental in creating repeat visitors and enhancing guest loyalty. By analyzing guest preferences and behaviors, we have tailored our offers and promotions to ensure guests have a personalized and engaging experience during their stay. This approach has resulted in more visitors returning to our property, fueling occupancy and gaming revenue.
Community Involvement
The Marketplace at Spirit Mountain Casino
The Marketplace is a vibrant hub where local craft and artisan vendors come together to showcase their products and services. It fosters community engagement by providing a platform for small businesses and independent creators to connect with both local residents and visitors. The Marketplace is an opportunity for SMC to promote regional commerce and strengthen our relationship with the community. Our emphasis on showcasing diverse offerings contributes to the area’s cultural richness and highlights our commitment to economic empowerment.
Pacific Northwest Indigenous Fashion Show
We were honored to host the first Indigenous Fashion Show. The event, designed to celebrate creativity, style, and cultural diversity, garnered much publicity for SMC through television and social media. The fashion show featured emerging and established designers, providing a stage for innovation in fashion while engaging the community in an entertaining, stylish and cultural experience.
Community Charitable Walks
Community Walks are part of our ongoing effort to encourage health, wellness, and support for causes that are near and dear to our guests and employee’s hearts. Organized primarily in the Fall, these walks often align with awareness campaigns, supporting important causes such as mental health, cancer research, and environmental sustainability. Our commitment to fostering a healthier, more connected community is reflected in the growing participation and enthusiasm for these events.
First Responder Open House
Introduced this year, the First Responder Open House is an important initiative that recognizes and honors the invaluable contributions of local first responders—firefighters, police officers, paramedics, and medical personnel. This event provides the community an inside look into the casino operation and fosters trust and cooperation between first responders and staff.
Leadership in Community Organizations
Our commitment to the community extends beyond events and programs; we take an active role in leadership within various community organizations. By participating in boards, committees, and councils, our team members contribute to shaping the community’s future.
Employee Engagement
We aim to create a work environment where employees can thrive, feel valued, and contribute to our success.
Comprehensive Training Programs: To ensure our employees have the skills and knowledge needed, we are committed to offering increased and ongoing training opportunities designed to enhance job-specific skills and foster personal and professional growth. Our training initiatives include job-specific training tailored to each department’s unique needs, focusing on foundational and key skills.
Our leadership development training is designed for those aspiring to move into or enhance their leadership skills. It covers management, team-building, and strategic thinking.
Opportunities to Meet with the Executive Team: To foster a transparent organizational culture, we hold regular coffee chats, town halls and spirit rallies. These informal gatherings provide an opportunity for employees to share feedback and voice their ideas, concerns, and suggestions directly with the CEO and executives.
The Ambassador of the Month luncheon recognizes employees who are nominated by their coworkers for living our company values and going above and beyond expectations.
Inspirational Speakers: Bringing in motivational speakers to inspire and energize our team.
Summer Picnic: Our summer picnic is more than just a celebration; it’s a chance for employees and their families to connect in a relaxed setting to participate in games, activities and rides.
Employee Committees: We empower employees by involving them in decision-making through various committees focusing on improving the workplace and developing initiatives to enhance the work environment and employee satisfaction. The Green Team is the newest employee committee that aims to reduce SMC’s carbon footprint by creating sustainable initiatives and educating the workforce on green initiatives.
The Coyote Connection, an employee app, is a mobile platform that provides access to critical information, company updates, and communication tools.
Spirit Mountain Community Fund
Six percent of gaming revenue is dispersed through the Spirit Mountain Community Fund. We are excited to celebrate with SMCF a significant milestone of $100 million dollars in giving throughout the state of Oregon.
Areas of Challenge
Labor Market and Dealer Shortage: The current labor market presents significant challenges, particularly in recruiting and retaining skilled dealers. The shortage of qualified candidates impacts our ability to maintain operational efficiency and deliver exceptional guest experiences.
Smoking Area Management: In response to evolving regulations and guest preferences, we are reassessing the management and design of our smoking areas. We aimed to design a slot smoking area that was both functional and comfortable, minimizing the impact on non-smoking guests. Unfortunately, the smoke tends to linger out of the room into nonsmoking areas of the casino. We are implementing different strategies to mitigate the smoke before considering options requiring structural changes.
Economic Impact: The broader economic environment plays a crucial role in shaping our operations; everything from consumer spending patterns to industry-wide trends can have significant impacts. The ongoing inflationary pressures and rising costs across various sectors—such as wages, cost of living, insurance, and utilities—pose significant challenges. These are areas largely beyond our control, yet they directly affect our operational costs and financial performance. We diligently monitor these economic factors to adapt our strategies and manage potential risks effectively.
Increase in Cost of Doing Business: The rising costs associated with operating our business present challenges and opportunities for strategic planning.
We continue monitoring financial performance and adjusting strategies to maintain financial stability.
By addressing these key areas strategically and proactively, we aim to navigate the challenges of the labor market, optimize our operations, and ensure continued success in a dynamic economic environment.
Looking Forward
In 2025, we are committed to solidifying our market prominence by evaluating casino offerings, maximizing what is working well and transforming areas that need attention. This initiative will enhance our brand’s reputation and deliver an unparalleled guest experience.
Listed below is a non-exhaustive list of areas of focus:
- Slots: Continuing to offer the best slot mix
- Market Share: Maintain, Acquire and Expose different segments of the market to SMC
- Creating Brand Awareness
- Continuous improvements through technology
- Facility improvements: lobby and courtyard (salmon pit); clubhouse; food and beverage outlets to meet guest demand
- Adding additional park models in the RV park
- Offering Electronic Table Games
