July 09, 2020

The work required to keep the casino a healthy and sustainable operation.

Grand Lake Casino is the primary provider of revenue for critical services provided by the Seneca-Cayuga Nation to our tribal members. The Nation has two primary sources of revenue to sustain operations and services to tribal members; a yearly budget allocation from the United States government and the operating profits from our tribally-owned businesses.  The largest by far being Grand Lake Casino.  Grand Lake Casino, operated by the Seneca-Cayuga Nation is one of 14 casino properties currently operating in Northeastern Oklahoma, easily one of the most competitive gaming markets in the entire United States. With this many gaming operators within a half-hour drive time, all the casinos are effectively competing for the same business.  

Tribal income generated from Grand Lake Casino covers all services provided by the Nation that are not covered by the US government. Services like member benefits, education, and some health. Much of the nations’ resources and programs for our members are not covered by federal dollars and must be funded from our casinos revenue.  For this reason, effectively managing our available resources to make certain Grand Lake Casino is successful now, and well into the future, is mission-critical.  

Operating a successful hospitality business requires loyalty from team members and guests. Responding to needs, establishing meaningful relationships and delivering impressions of quality are all drivers of loyalty. There are two primary considerations when evaluating the performance of a gaming and hospitality business. 1) the quality of the physical asset (the facility itself) and 2) the quality of the operations. These factors combine to determine the overall competitive quality of the casino and its ability to attract players to visit.  

The quality of our physical property is determined by how we maintain and develop the amenities and other physical characteristics of the casino. We refer to the process of strategic and intentional reinvestment of financial resources in order to sustain our business as “capital stewardship.” In the most literal sense, acting as stewards of Nation resources and making appropriate investments into our business to make certain there is a vibrant enterprise that provides employment and resources to the nation for many years to come.  

The wants and needs of casino players are consistently evolving and the standards for operational quality increases over time. Remaining a relevant and viable choice amongst 13 competitors requires the decisions for Grand Lake Casino to be highly responsible and low risk. This is our approach to capital stewardship. Each year, we plan and spend approximately 2.5% of casino revenue on maintaining the physical plant of the property. This allows us to maintain the operational quality of the property and develop new concepts, like Scoops, that increase the competitive quality of our casino business.  This business management concept is critical to the long-term health and sustainability of our gaming enterprise.   


Dusty Logan, General Manager of Grand Lake Casino expanded on how capital dollars are deployed: “Each year, we budget a specific dollar amount to spend on property maintenance and refreshening our guest amenities. In a market as competitive as Northeastern Oklahoma, it is critical we keep Grand Lake Casino updated, competitive and accommodating to the ever changing needs of our guests. Our capital projects provide evidence of our commitment to building a property that is best-in-class and an enterprise that all members of our Nation can be proud of.” 

Logan remembers a time when reinvesting in the business was not a priority. “Historically, Grand Lake Casino was not very well maintained. In 2014, we determined that in order to improve our business performance, dedicated financial resources would be needing to improve the quality of our physical asset. The value we deliver in our guest experience and their loyalty has improved as a result.” Reinvesting profits in exchange for development and growth is mission-critical to the long-term success of Grand Lake Casino. The success of Grand Lake Casino over the previous half decade is a result of consistent capital reinvestment that develops the property and a leadership team that continues to ramp up the quality of our gaming operation. Grand Lake Casino continues to climb in the competitive ranks of Oklahoma casinos, moving from an era of lackluster performance and unintentional existence, to this season of being very intentional about every action and delivering the most caring and intentionally designed guest experiences in the state.

In order to move from where we were to where we are, a host of capital projects have been completed. Examples of the projects that have been completed at Grand Lake Casino since 2014 include; 

  • Remodeled main entry interior
  • Installed new lighting throughout the casino
  • Built new players club
  • Modernized bathrooms
  • Remodeled restaurant
  • New paint for building exterior
  • New paint for building interior 
  • Installed back-up power generator
  • Developed live music venue at Venue 655
  • Developed new quick-service casual dining venue
  • Replaced carpet and flooring throughout property
  • Replaced game stools for slot machines
  • Modernized Information Technology infrastructure
  • Removed old portico
  • Constructed new portico 
  • Improved air quality through ionizers & deodorizers 

In addition to the projects above, which are easy to identify, the casino also uses maintenance capital to maintain infrastructure like replacing aged out HVAC units, sealing and striping the parking lot and upgrading the technologies required to operate the property, investing in top of the line sanitization and air-purification to keep the environment safe and healthy for guests.

Risks of Foregoing Reinvestments:

We refer to the dynamic of foregoing reinvestment in a physical plant as deferred maintenance. Deferred maintenance in gaming and hospitality leads to erosion of quality and lost revenues. Over time, players simply choose to spend more and more of their time at properties that are better maintained and are investing in their experience.  Deferred maintenance environments create difficult situations for leaders and team members, as staff is not provided with the necessary tools to perform their jobs to the best of their ability. Deferred maintenance environments require more crisis management as neglected core operating systems tend to break downs and require urgent repair to maintain a minimum standard for operations. Deferring maintenance means operating a business that is in constant need of repair. Responsible, disciplined capital initiatives allow us to direct our efforts to preparing for success than repairing failures. 

The competitive landscape in Northeastern Oklahoma, the trade region for Grand Lake Casino, has played a crucial role in how we prioritize investment at our casino property. Within 15 minutes drive time of our property, our competitors have spent nearly $100M to develop additional gaming attractions. These attractions are intended to draw players AWAY from Grand Lake Casino. The three properties nearest GLC have been built or expanded very recently, having added 219 hotel rooms, 600 games and a host of other amenities like restaurants, conference centers, banquet space and nightclubs.  To remain competitive, Grand Lake Casino is consistently pressured to evolve the experiences of its guests. 

Through it all, Grand Lake Casino remains focused on constantly evolving its business and advancing the experience of the guests who visit our property. Dusty Logan, the property GM, expanded on this idea: “We’ve re-invested in our facility to create the best experience in the area. The projects we choose to invest in are strategic and intended to attract guests to our facility who are looking for exactly what we provide. We are always looking to offer things that other properties can’t...making the experience here unique. As a tribal member, my hope is the developments here restore a strong sense of pride across our Nation for the things we have accomplished, and the excitement that comes from what we can accomplish in the future.” 

Nick Birdsong, Assistant General Manager for Grand Lake Casino, emphasized the pride felt in the stewardship and recent project completions: “It does a lot for the tribe, succeeding here at the casino means there is more money going back to the Nation and to tribal members. So much of the money here helps with member benefits. It isn’t just about enterprise succeeding, but the tribe and members needs’ being met.”