Hooter's Las Vegas Casino Falters After Strong Opening

"Hooters has followed Hard Rock Cafe into the Las Vegas casino business, but is off to a mighty shaky start.

"'We think we're a natural,' said Ed Droste, a co-founder of the Clearwater-born empire that wants a place at the tables now that casino gambling has spread to most states.

"...Hooters' resurrection of a third-tier casino got off to a rough start. The venture lost $21 million in its first 15 months.

"...Skeptics abound. Debt analysts see a struggling casino but have yet to see the financial terms for a purchase that's already been put off once to an Oct. 30 closing.

"...Despite a half-mile walk from the strip in a place built in 1973 as a Howard Johnson Hotel, the Hooters Casino debut stirred lots of interest. About 1,100 applied for 200 Hooters Girl jobs. The place was mobbed for weeks with the sprawling pool deck resembling spring break in Panama City.

"The welcome faded fast. Gamblers complained of tight slots,  and of blackjack rules that were too greedy. Hotel rates dropped to as low as $50 a night, compared with a citywide average of $100. Gaming provides only a third of the revenue, well below a 40-percent industry benchmark.

"The founders concede they rushed to open too soon. They mistakenly didn't book advance business until the kinks were worked out.

"...After sharing the influential Las Vegas Review-Journal's top rating for customer service with the luxurious Wynn Las Vegas, the Hooters Casino Hotel's occupancy rates in recent months rebounded to more than 90 percent and the average room rate rose to $90 a night..."