Riviera Holding Q3 2007 Earnings Call Transcript

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2007-11-02 15:21:37.0

Tags: Riviera Holdings Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question is coming from Jane Pereira (ph) of Lehman Brothers.

Jane Pereira - Lehman Brothers

Good afternoon, everyone.

Bill Westerman

Hi, Jane.

Jane Pereira - Lehman Brothers

Hi! I just had a couple questions. Can you be more specific with respect to what you are doing for the smoking and what is actually allowed? Are you allowed to have indoor enclosures or do you have to do something that is actually outdoors?

Bill Westerman

Mark just came back from there last night, so he can give you an update on exactly what we are doing.

Mark Lefever

The Colorado Legislature, it has to be outdoors and we submitted our plans to the City of Black Hawk, which have been approved, and the construction has started, but we are going to have three smoking areas that will be outside.

One will be off the front right side of the property, and the other two will be balconies and areas off of either side of the casino floor that will be open. One will be to the Isle, and the other to the street. But they have to be outside.

Jane Pereira - Lehman Brothers

And then will you have heating out there for the winter time?

Mark Lefever

Yes, absolutely. And ice melt on the floor, and some seating, and that kind of thing.

Jane Pereira - Lehman Brothers

Okay. And then?

Bill Westerman

It's about a $1 million project, just to accommodate this.

Jane Pereira - Lehman Brothers

Okay. And then my other question is, are there native casinos nearby? And I am wondering, if so, do they have to comply with the smoking ordinance as well?

Bill Westerman

There are no native casinos within a reasonable driving distance of Black Hawk, and I doubt that they would comply with anything the white man tells them to do.

Jane Pereira - Lehman Brothers

Okay. So I guess that’s good they are not nearby. The other question I had is, due to the fires, the wildfires in California, have you seen any drop-off this far in leisure spend, and if you do, what other spigot would you turn on that’s available to you?

Mark Lefever

Well we rely very little on the California for most of our business. Most of our business comes from the Midwest and market, and through our marketing programs. We have seen very little impact on the California business coming to us. That may not be true with other operators, but ours has been minimal.

 

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