As reported by: The Detroit News
Casino Windsor is turning 10 years old and it may be time for a growth spurt.

The gaming complex on the Canadian side of the Detroit River has seen its gambling revenues decline by nearly 40 percent since 2000, largely due to tightened border security and intense competition from Detroit's three casinos.

Windsor Casino officials say the best play now may be an expansion.

“Just standing pat in a competitive market won't do,” Kevin Laforet, president and CEO of Windsor Casino Ltd., said in a recent interview. “We're looking at a lot of options for expansion.”

The options include expending convention facilities, entertainment venues, restaurant offerings, number of hotel rooms and spa services.

“You see more and more of casino resort properties looking to expand what supports the gaming,” he said. “I think any expansion would be more along those elements.”

Since the casino itself is owned by Ontario, any expansion must be approved by the provincial government. Laforet said those talks are ongoing.

While Casino Windsor now is generating about $514 million ($400 million U.S) annually in gaming revenue - about the same as the MGM Grand Detroit Casino and MotorCity Casino - just four years ago it had a substantial lead over the other casinos with $838 million ($640 million U.S.) in revenue.

Much of the downward slide can be traced back to a series of events a gambler might call a bad run of luck. The three Detroit casinos opened the doors of their temporary facilities in 1999 and 2000, grabing customers away from Windsor.

The September 11 attacks reduced Casino Windsor's revenue by 90 percent overnight, as access to the U.S./Canadian border virtually shut down. More than 80 percent of the casino's customers come from the United States, mostly from Michigan.

Difficulty in crossing the border lingered on for months, keeping Americans at home rather than facing one- to three-hour waits at the border.

Just as things got better, an massive power failure in August 2003 closed the casino doors for eight days. And this past spring, casino workers went on strike, shutting down the facility for 42 days.

“We're now waiting for the locust to strike,” Laforet said with a laugh. “There has been a series of challenges since 2000.”

The casino is managed by Casino Windsor Ltd., owned equally by Caesar's Inc. and Hilton Hotels, both major players in the casino industry. They receive a management fee and a percentage of the revenue for running the facility.

Casino Windsor has 3,300 slot machines, 80 gaming tables, five restaurants, a 389-room four-star luxury hotel and offers big-name entertainment. It has 4,000 employees.

Jacob L. Miklojcik, president of Michigan Consultants, a Lansing-based casino consultant, said Casino Windsor will be a survivor in the increasingly crowded gambling market but will struggle to grow.

Miklojcik said Casino Windsor was smart to include a hotel with the gambling hall, where it can give away rooms to high-rollers, something the three Detroit casinos can't offer in their temporary facilities.

“Nothing is more perishable than a hotel room.” he said. “They sized hotel and casino correctly and never let their mortgage get out of hand. They are doing OK over there.”

Dorothy Grayson is a Casino Windsor fan.

The retired school bus driver travels almost two hours to visit the Canadian riverfront casino three times a month, one of thousands of Michiganians to drive right past Detroit's three casinos to gamble in Windsor.

“It's brighter and more alive in Casino Windsor,” said Grayson who lives in Burton, just southeast of Flint. “The employees seem more friendly, and you know, I seem to win here more.”

Another attraction, she noted, was the Casino Windsor billboards along Detroit's freeway system that remind Americans the Canadian gaming house doesn't report winnings to the Internal Revenue Service.

From its opening in 1994, Laforet said Casino Windor's business strategy was to give Americans a reason to visit the casino. It was re-emphasized in 1999 when the first of Detroit's three casinos opened to the public.

“We built the facility with customers in mind,” Laforet said. “Our goal was to make this a world-class, Las Vegas-style casino resort. The three Detroit casinos are our primary competition. But it is coming from everywhere, too.

“We will continue to offer a facility that is exciting enough, offer good service and new elements to give our U.S. customers a reason to cross the border,” Laforet said.

A plus for the casino is its location in Windsor, a popular Canadian border city where thousands of Michigan tourists feel comfortable walking the streets on warm, summer nights.

In an effort to keep Americans flowing across the border, Casino Windsor heavily promotes its facility in Michigan. They offer various promotions along with advertising on Detroit billboards, radio and television stations. They have also featured such entertainment acts as singers Michael Bolton, Natalie Cole, Anne Murray, Smokey Robinson, Pat Benatar, Tom Jones and Wayne Newton.

Amos Hayes, a retired General Motors worker from Youngstown, Ohio, says he'll keep coming back to Casino Windsor. He visits the facility about every six weeks. The bright lights, space and waterfalls remind him of Atlantic City casinos.

But the Canadian exchange rate makes his money stretch out. The exchange rate Thursday was $1.28 Canadian for every $1 American.

“You can play longer on the same amount of money,” said Hayes.