With two more casino projects in the pipeline, the Indian gambling establishments in Sacramento might soon become too many for the size of the market.
The Wilton Rancheria Tribe has been given federal clearance for a $400-million casino complex in Elk Grove while the Enterprise Rancheria is currently building a gambling parlor in Yuba City.
When the new casinos open, they are expected to take away customers from neighboring competitors.
According to Lucy Dadayan, senior policy analyst at the Rockefeller Institute of Government, the national casino market is saturated because of the increasingly prominent customer segment of millenials who tend to be reluctant to spend all their money on gambling.
Indian gaming in California forms a significant portion of the market with 59 casinos. It ranks only behind Nevada (270 casinos) in terms of gaming revenues.
In order to gain an edge over the competition and attract further target groups such as couples and families, casinos will have to provide amenities in the form of spa centers and diverse restaurants, maintains Ira Kalb, assistant professor of clinical marketing at the University of Southern California Marshall School of Business.