Saracen Casino celebrates 1 year
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The columns that protrude from the top of Saracen Casino Resort is the starting point for the construction of a hotel, casino officials say.(Pine Bluff Commercial/Byron Tate)
A year ago, mask-wearing officials and dignitaries strolled through the gaming area of Saracen Casino Resort as the doors to the full-sized casino were opened for the first time.
Now, a year later, the two elected officials that had to come together and agree to the deal with the Quapaw Nation before a casino could happen -- Mayor Shirley Washington and Jefferson County Judge Gerald Robinson -- are pleased with how things have turned out.
"Saracen Casino has been an outstanding addition to Pine Bluff," Washington said. "It's an experience unlike any other in Arkansas. Visitors love the games, restaurants and exceptional dining experiences. In fact, Saracen's Red Oak Steakhouse is one of 38 restaurants in the nation and the only one in Arkansas that is licensed to serve Kobe beef, one of the world's rarest and most delicious meats."
Said Robinson: "Economically it has been a great benefit for the city and the county. They have created jobs and given people a reason to come visit and have something to do. It's been great for the citizens."
Casino officials have said over the course of the year that they too are also happy with their investment in Pine Bluff. The facility was opened in the middle of a pandemic, so there was some expectation that gambling numbers would be down, but overall, they say the profits have exceeded their expectations.
That feeling was bolstered earlier this month when two credit-rating agencies upgraded the casino's credit rating on the same day.
The agencies pointed to quicker-than-expected ramp up of the operation and strong cash flow and profits as reasons for upgrading the ratings.
Carlton Saffa, chief market officer for the casino, said the two agencies amounted to "object third parties" in their comments about the overall health and outlook of Saracen Casino Resort.
Said Quapaw Nation Business Committee Chairman Joseph Tali Byrd: "We are thrilled two such respected credit rating agencies like Moody's and S&P saw the need to upgrade our rating on the same day. This rating upgrade sends a strong message that our Saracen gaming operation is performing well and confidence exists in our ability to service debt."
Numbers are a big part of what amounts to success for a casino. How much is wagered? How much is paid out? (The difference, as a percentage, is called the hold.) And then there are monthly numbers that Washington and Robinson are keenly interested in -- the taxes paid by the casino.
The big casino opened on Oct. 20, 2020, and the latest financial report for its operation, distributed by the state Racing Commission, goes through September, so the overall numbers are for something short of a year. But for those 10 months and 12 days, the casino generated close to $18 million in taxes. That number represents 13% of the casino's profit from its slot machines, table games and sports book operation.
More than half of that $18 million -- 55% -- goes to the state; 17.5% supports racing purses; 19.5% goes to Pine Bluff; and 8% goes to Jefferson County.
In dollars, that's about $3.5 million for Pine Bluff and about $1.4 million for Jefferson County.
Before the big casino opened, there was the annex, a smaller venue that opened in September 2019 across the street. From then until the time the larger casino opened last year, the annex paid some $5 million in taxes, contributing $975,000 to Pine Bluff's coffers and $400,000 to Jefferson County's. The annex has remained open so its numbers are now part of the overall ledger for the casino.
From the public's perspective, the casino has given visitors and locals alike somewhere to go for entertainment at a time when Pine Bluff has very few if any tourist attractions. Casino officials have noted that many of their reservations for the high-end Red Oak Steakhouse are from out-of-town guests, meaning people are willing to drive from Little Rock and beyond to get here.
That aspect is not lost on Mayor Washington.
"As a destination spot, it's drawing tourists from around the country, especially Central Arkansas," she said. "They are coming because of these unique, high-quality, world-class experiences. This activity has led to significant revenue growth for the city, which will be invested in services and projects that are needed to improve Pine Bluff."
The facility has also been a boon to the local job market, with many people from Pine Bluff and Jefferson County finding work there. That is by design, with casino officials saying they want the casino to be a place where visitors from outside the area come and play and where local people can find work.
Said Washington: "Additionally, almost 1,000 new jobs have been created, building new economic opportunities for countless people."
Saffa confirmed that figure, saying the casino employs between 900 and 1,000 people and that two-thirds of them live in Jefferson County. Now that the big casino has been in business a year, Saffa said, all employees were given 5% across-the-board raises, adding that the casino has also just started a tuition reimbursement program for employees who want to go to a trade school or to college.
Saracen has also prided itself on giving back to the community. For the second year in a row, Saracen gave 400 turkeys to Neighbor to Neighbor, the Pine Bluff food pantry, and casino officials on several occasions have come to the rescue of small towns in the area with truckloads of bottled water when the towns' water systems have been compromised.
"That's standard practice for us," Saffa said. "We try to fill the gaps where we can."
In April, the casino made headlines when it contributed $100,000 to support the Student-Athlete Academic Center at UAPB. The center, as the name suggests, helps student athletes with their academic progress.
"Our commitment is to be a true partner in this community," Saffa said at the time the gift was announced, "Our desire is to do our part in making sure that we add to the growth of this region. UAPB has a proud tradition of educating students and expanding opportunity, and we intend to be a part of that continued success."
"We give in many places," Saffa said, when asked about the casino's outreach efforts. "Sometimes it's something we would like our name associated with, and sometimes it's just a worthy cause, a donation of charity, and the purpose of donating to charity is to do just that."
Saffa then asked himself a question that he answered.
"Do the people of Pine Bluff think we are good community partners?" he said. "I would hope the answer is yes."
As part of the arrangement with the city and county, the casino funded the construction of two structures for the city, something the mayor touts as one of the key benefits to having the casino.
"Saracen has been a strong community partner," she said. "Because of their support, we've constructed a new fire station, police substation, and the first roundabout in our history along Highway 79. Looking to the future, we're excited for the new hotel to be built, which will be adjacent to the casino. This will draw even more tourists to Pine Bluff, including guests for conferences, conventions and family reunions.
County Judge Robinson also mentioned the hotel, although he expressed some dismay that one hasn't been built yet.
"I'm a little disappointed that they are not any further along in having a hotel and convention center part of it yet," Robinson said. "Those are the things that members of the public are looking forward to -- being able to stay there and spend the night there."
Casino officials said months ago that, with the unknowns associated with covid, the timing was not right to proceed with a hotel. Then, again because of covid, there was the well-documented spike in the price of raw materials, mainly lumber and steel, which would be used extensively in any new construction.
But with more people vaccinated now and the latest surge in covid subsiding, Saracen is again talking about the planned 13-floor, 300-plus room hotel, which has been projected to cost $100 million. Also on the table is the construction of an events center and parking garage.
The total cost, Saffa said, is "several hundreds of millions of dollars." Casino officials had been looking for options for borrowing the money for the projects, Saffa said, but the upgrade in the casino's credit rating has had its up and down sides. The improvement has put the casino in a better position with potential bankers and will allow it to get a better interest rate. The down side, Saffa said, is that the work that's already been done in preparation for finding suitable financing will have to be redone.
"The determination by Moody's and Standard & Poor's has allowed us to work a better loan deal," Saffa said. "We will not regret having the best deal that we can find."
The paperwork and fees for such due diligence work, he said, however, costs "hundreds of thousands of dollars, and it doesn't go quickly. You can't reconfigure this in days or weeks but more like months or quarters."
Saffa said, however, that he understands the desire to have the hotel built.
"I appreciate it when the hotel is asked about," he said. "I don't take that as a slight. I feel that it's a compliment instead because people are interested in it."
Saffa said casino and Quapaw Nation officials work daily on finishing the design for the new projects and are "working as fast as humanly possible."
And to put any fears to rest, Saffa said the projects will definitely be built.
"Any rumor that there won't be a hotel is categorically false," he said.
And when the hotel is built, there will be another 200 jobs to fill, he said.
Washington again saluted Saracen for its first year in business.
"Ultimately, we're looking forward to further collaboration as we grow our partnership with Saracen Casino," she said. "This has been a wonderful year, and we're elated about those to come.
Saffa also understands the benefit of being visible when it comes to the political end of the spectrum, having worked as an aide at one time for Gov. Asa Hutchinson. Just this past week, Saracen sponsored an Arkansas Chamber of Commerce fly-in to Washington, D.C. to meet with the state's delegation.
"We employ close to a thousand Arkansans," Saffa said. "And since the Quapaw people were the original Arkansans, we wanted to meet with our peers in business and our delegation that represents the homeland."
And as Saracen Casino Resort begins its second year in business here, it is worth noting that another casino has yet to get off the ground. The other approved casino, to be located in Pope County, is still tied up in the courts.
