Add another casino list to the growing roster of resorts in California. In what was once a state with only a few poker rooms, a new Las Vegas style mega casino will soon be coming to Elk Grove. As is the case with every non card room casino in California, the land is going to be owned and operated by an Indian Tribe. For the Elk Grove casino, that group is The Wilton Rancheria Tribe.
There is no actual timeline for when the casino will begin construction and ultimately open, as the tribe is still awaiting further approvals from both state and federal government bodies. They have claimed that they will be investing $400 million into what they are calling a “resort property.” Though it is quite unlikely that an actual hotel will be built on the land, the tribe says that they will include a spa, pool, and other amenities that will qualify the destination as more than just a casino. Of course, the common understanding of the word “resort” is that their will be rooms on the premises, but in this case, it seems to be little more than a gimmick.
One of the noteworthy elements of this deal is found in what the tribe has agreed to pay as compensation. It does not appear that annual taxes or other fees will be applied to the casino, but that the tribe will instead pay a one time amount of $14.5 million to the city of Elk Grove. While this is certainly a large amount of money, it seems that the city is getting the short end of the stick here. A lot of jobs will be created, but a lot of money will be removed from the economy as well. Unfortunately, with tribes being allowed to build casinos at will, they are allowed and free to take advantage of this by offering weak cash deals to cities in need.
It is certainly interesting that Elk Grove will be receiving what seems like very little in exchange for this right to own and operate a casino, which should of course generate untold profits assuming decent management is in place. This does not seem to be the best move possible for a city like Elk Grove, but money talks, and it seems that $14.5 million is all it takes in order to obtain a license to print money in the town of Elk Grove, California.
We will post further updates as additional legislation is passed (or denied) and later plans are released. As of now, the actual name of the casino resort is unknown.