Gaming is big business in the St. Louis region, Missouri and the United States. In Missouri alone, according to the Missouri Gaming Commission, the gaming industry generated $828.4 million in Fiscal Year 2008.
Mike Jones, St. Louis County Executive Charlie Dooley’s executive assistant, believes gaming executives need to respect “the importance the industry plays in this region.”
And the importance of inclusion in the industry.
“It is important that the workforce be representative of the region and that it benefits the minority community,” Jones said.
“(Casinos) employ a lot of people at livable wages and are also an important tax contributor to the state and local municipalities.”
Missouri Gaming Commissioner Darryl Jones (no relation) strikes the same note.
When Darryl Jones was appointed to the Missouri Gaming Commission, he came on as its lone African-American member.
He brought with him a determination to make the state’s casino industry address a lack of inclusion in employment and spending with minority-owned companies.
“I don’t think the commission in the past had (inclusion) on its radar,” Darryl Jones said.
“My fellow commissioners now, both Democratic and Republican, realize the importance of diversity in employment and spending. We take it seriously.”
Darryl Jones said he and other commissioners are particularly sensitive to the fact that most gaming locations receive some state support, either through tax abatement or other concessions.
Jones added that state voters recently passed Proposition A, which included removal of the $500 loss limit, an increased tax rate on adjusted gross receipts and capped the number of gaming licenses in Missouri.
“We can leverage them at re-licensing time,” Jones said.
“If you take $1 from the state, you must have adequate minority participation. If you do it with private money, you can do what you want.”
Two years ago, Harrah’s, Ameristar and Pinnacle representatives were grilled by Jones, other members of the Gaming Commission as well as Executive Director Gene McNary when it came time for license renewal.
In its aftermath, the commission hired John Nathan to the newly created position of compliance auditor/liaison officer.
The commission called on Nathan to compile its first business report on minority employment and Minority- and Women-Owned Business Enterprise Participation. Each gaming facility is required to submit a monthly/quarterly report relating to MWBE participation and minority employment. Nathan’s responsibility includes “meeting and discussing Affirmative Action plans with top casino management officials to insure compliance of that document.”
The areas that are monitored are minority hiring, Minority- and Women-Owned Business Enterprise participation, vendors/suppliers and construction.
“There have been noticeable improvements in minority and women inclusion at almost all Missouri gaming facilitates,” according to Nathan.
The St. Louis American sent copies of the report results to representatives of each of the St. Louis area’s casinos and requested comments on issues ranging from percentage of African-American managers, how the casino would be working to increase minority employment and spending and its highest ranking black employees.
Similar information and comments were requested from East St. Louis-based Casino Queen and the Argosy in Alton, and they replied with statistical data. The MGC report was issued in late August, and that report’s figures are used here.
Ameristar in St. Charles
Ameristar saw its African-American employee percentage go from 26.41 percent (493) to 28.94 (593) percent over the past year.
Minority vendor/supplier spending for MBEs went from 1.63 percent in 2007 to 5.07 percent in 2008. Less money was spent with MBEs, but overall spending on contracts went down significantly.
During the year, Ameristar spent $215,367,661 with only 2.1 percent going to MBEs and 2.9 percent to WBEs. Total spending with MBEs was $4,416,294. A new hotel was built in 2007, and more than 19 percent of that budget was spent on MWBEs.
Ameristar does not have any agreed-upon hiring or spending goals, according to the MGC report
Mike Knopfel of Ameristar tells the American that Ameristar is located in St. Charles where the minority population is about 9 percent. The minority population of St. Louis County is about 28 percent.
“We actively work with a number of organizations to identify talented minority job candidates. We participate in minority job fairs such as the St. Louis Diversity Career Fair, Congressman William Lacy Clay’s job fair and the Missouri Career Center,” Knopfel said.
“We also network and use the recruitment services of Mers Goodwill, St. Louis Business Diversity Initiative, the Urban League of Metro St. Louis and the Hispanic Chamber of Commerce.”
Nathan says in the MGC report, “They need some improvement in the minority vendor spend area. They are working with minority companies and organizations to make this happen.”
Knopfel said Ameristar “regularly looks for ways to improve our performance in this area.”
“In 2007, our property rolled out an MBE/WBE online vendor application process that makes it easier for MBEs and WBEs to introduce themselves to us and for us to do business with them,” he said.
“Unlike some of our competitors, our property doesn’t have government-mandated MBE and WBE goals in our jurisdiction. We’ve taken these steps because they’re the right thing to do. We believe suppliers with diverse backgrounds help strengthen our company and enhance economic development in our community.”
The company’s two highest-ranking minority executives are Hotel Director Genevieve Cu, who is Asian, and Assistant Food and Beverage Director Lowell Martin Jr., an African American.
Cu oversees operation of Ameristar’s new $270 million hotel and spa, while Martin manages 10 property restaurants and entertainment venues, the 20,000-square-foot conference center and all beverage operations on the casino floor.
“In addition, one-third of our executive committee, the property’s senior-most leadership, is comprised of females and/or minorities,” Knopfel said.
He said the company “does not disclose management breakdown information.”
“Our property and company are actively working on a new program to improve our bench strength by preparing front-line and mid-management team members for more senior positions,” he said.
“We also offer a tuition reimbursement program of up to $6,000 per year. On-site MBA classes through Lindenwood University also are offered to team members.”
Harrah’s St. Louis
Harrah’s saw its African-American employee numbers drop from 752 (38.52) percent to 699 (37.42 percent) over the year. Overall employment dipped by 84 employees.
MBE spending jumped from 2.25 percent ($706,844) to 3.61 percent ($965,880). Overall spending dropped by more than $23 million at the casino.
While construction spending jumped from $11.03 million to $16.60 million, the MBE commitment fell from 4.87 percent ($536,980) to 2.82 percent ($468,369).
Harrah’s has no stated goals, saying it will use its “Best Effort.”
Nathan says in the MGC report that effort includes “top management (holding) a number of meetings to plan ways to increase both the vendor spend and construction inclusion.”
Nathan noted, “Harrah’s has attended minority workshops in the metropolitan area to help increase minority spending.”
Jones said, “They know they can do better.”
According to Nathan, Harrah’s remodeled its restaurant/buffet to the amount of $17 million, and he added, “We discussed ways to increase the inclusion of minorities on that project.”
Jones said the fact that Harrah’s is not in the city is not an excuse.
“They are drawing from this entire metropolitan area,” he said. “I don’t want to hear that excuse, ‘Well, we couldn’t find any minority businesses.’”
Pinnacle Lumiere Place
There are no 2007 numbers for comparison for Lumiere Place, which opened in late December 2007. According to the study, Lumiere has 688 black employees, which is 47.94 percent of its staff. About 42 percent are white.
In 2008 just under $270,000 (or 11.19 percent of spending) was spent with MBEs. Construction will continue in 2009 for the new casino with $45,430,314 being spent with MBEs or 18.70 percent of total spending.
According to Lumiere, of the $243,000,000 spent on the new casino, $67,942,674 (27.96 percent) was spent with minority-owned companies.
Lumiere has stated goals of 25 percent MBE and 5 percent WBE participation.
Pinnacle, The President
Of St. Louis-area casinos in Missouri, The President had the largest black workforce, 60.61 percent (240). This was down from 63.48 percent in 2007 (266), but the total number of employees (396) was down 119 from the previous year.
There was no construction spending in 2008 with the casino in “a transitional period,” according to Pinnacle, which owns both Lumiere Place and The President. They have combined the hiring and purchasing of goods and services through Lumiere Place.
After opening almost a year ago, Lumiere targeted goals of 25 percent MBE and 5 percent WBE participation. The first quarter of 2008 showed a minority spend of 25.94 percent.
“They know that some improvement is needed in this area,” Nathan wrote.
While more than 64 percent of The President’s employees are minorities, Nathan noted, “they need a lot of improvement in the MBE vendor supplier spend. He added they are “committed to making improvements.”
Mac Carheel, Pinnacle director of talent sourcing and staffing, and Charles Felton, purchasing director, are the two highest-ranking African-American employees serving Pinnacle’s two casinos.
In addition, Harry Moppins serves as Pinnacle’s MBE compliance officer.
Moppins’ responsibilities include the development and enforcement of the company’s Diversity and Compliance Plans in St. Louis, developing programs to attract and retain MBE/WBEs, preparing and making presentations to various audiences on the status of MBE/WBEs programs.
While saying there is room for improvement, “The report shows that we have the best numbers,” Carheel said.
“It’s because we are serious about (diversity). A lot of work goes into it.”
On the management front, 18 percent are African-American while 70 percent are white. Eight percent are Asian and 2 percent are Hispanic.
More than 45 percent of the managers at the two sites are women.
Pinnacle offers an Executive Development Program through Cornell University, which identifies diverse talent and provides a structured learning opportunity to develop skills and competencies in the gaming, hospitality and entertainment industry.
It also has an Executive Bench Strength Program, “to cultivate top performers for senior management positions within Pinnacle.”
Carheel said supporting diversity and inclusion “is built into our job descriptions.”
“We also work closely with our community partners, sponsor our own job fairs so we can continue to grow and develop minority workers.”
After some rocky days involving minority participation in construction of the project, St. Louis Development Corporation Executive Director Rodney Crim said, “Pinnacle has demonstrated that they are committed to working with St. Louis City towards inclusion of minorities in the building and operation of their business.
“We are pleased with their performance in this area to date.”
Pinnacle also offers its employees programs such as tuition reimbursement.
Felton said every bid that goes out reaches “at least one minority firm n mostly from the area, but also across the nation.”
Felton said, “We send out more than 800 email blasts for our vendor fairs. We put ads in all newspapers, and we have even changed some of our payment terms to help minority-owned businesses.”
Carheel said minority hiring and spending “increased each quarter during our first year.”
Argosy Alton
The region’s first casino was the Alton Belle in Alton, Ill., and the city is now home to the Argosy Alton.
In 2008, its workforce was 13 percent African-American and 57 percent female. The respective averages for Madison County, Ill., are 10 percent minority employment and 52 percent female.
More than 11 percent of the Argosy Alton’s officers and managers are minority and 39 percent are female. Just 6 percent of the officers and mangers in Madison County are minorities.
African Americans head Argosy’s Security, Surveillance and Regulatory Compliance departments and the casino has had other black officers that have held upper-management positions that have gone on to “other success in the gaming industry.
The Argosy spent 3.2 percent of its budget with MBE firms and 7.9 percent with WBE companies. It had no major construction projects in 2008 and its spending with MBEs is higher than the Madison County averages, as well.
According to an Argosy statement, “We continually strive to ensure equal opportunity and to promote diversity in a manner reflective of our local community.
“Our commitment to diversity extends to our employees, our vendors, our business partners and our community.”
Argosy does not have a diversity/inclusion officer, but does have a diversity committee, which includes employees at all levels.
The casino says it plans to continue to target recruitment of minority employees through advertising with various African-American organizations and publications, and posts jobs with the Illinois Department of Employment Security. It also hosts job fairs throughout the metro area to target a diverse workforce.
The casino is also working to increase its minority spending participation, and that effort includes hosting a minority vendor fair at its property in Alton and helping to fund and attend fairs at other casinos throughout Illinois as a member of the Illinois Casino Gaming Association.
It recently hosted a minority vendor fair in October with 27 minority-owned businesses and 10 female-owned firms. This year, Argosy will join with other ICGA members to host a similar event at one of the member casinos.
Casino Queen
The Casino Queen is celebrating its first year as a land-based facility with more than 47.5 percent of its employees being African-American, 46.8 percent white and just more than 4 percent being Asian. The male/female demographic is 50.8 and 49.2 percent, respectively.
Demographics on management positions were not available.
Along with helping East St. Louis to keep city services available to its residents through the gaming site’s taxes, employee wages and community support, construction of the new casino was a model of inclusion.
The deal that created the new land-based included the Clayco Inc./Legacy Building Group LLC Joint Venture. The first phase of the renovation was $92 million, and total spending topped $150 million.
Up to 450 tradesmen were on site, and Legacy CEO Todd Weaver, who is himself African-American, kept his pledge of 25 percent minority participation.
Clayco/Legacy formalized a unique agreement with the Occupational Safety and Health Administration (OSHA) that Weaver said would “create an environment for a number of disadvantaged and minority contractors to partner with OSHA and contractors, like Clayco and Legacy, who are interested in sharing our knowledge, experience and resources to improve construction safety performance.”
The St. Louis Minority Business Council and Casino Queen also held a pair of job forums for minority- and women-owned businesses to meet and network with Illinois- and St. Louis-area casino purchasing departments. St. Louis and Illinois casinos were on hand to discuss a variety of opportunities, ranging from general equipment and supplies to construction and contracting.
States of affairs
Tom Swoik, Illinois Casino Gaming Association executive director, tells the American he intends compile a report similar to the Missouri study to use as a baseline.
“The members of the Illinois Casino Gaming Association are proud of their record of hiring minorities and utilizing minority vendors,” he said.
“We continuously strive to improve, and therefore, for the last three years have sponsored and participated in various minority vendor fairs throughout the state. We are committed to expanding minority participation and will continue these activities.”
According to the results of a 2003 Gaming Industry Diversity Snapshot, commercial casinos employ a higher percentage of minorities than the overall U.S. workforce (by 17.4 percentage points), even when service workers are not taken into account. Compared to other businesses in their states and nationwide, the industry also employs a higher percentage of black, Hispanic and female executives.
