Three Oxford-area companies anticipate more business thanks to casino

When completed, the new Oxford Casino is expected to create over 900 new jobs, carry a $32 million payroll and generate $69 million in revenues for the state, according to a report from UMass Dartmouth.

But for now, the 17,000-square-foot casino, which opened in early June, employs about 400 workers, some of whom tend the more than 500 slot machines and a dozen gaming tables. The 24/7 facility is already beginning an expansion to the gaming floor while a larger vision for a 200-room hotel comes into focus, according to casino public relations manager Scott Smith.

"We've got 100 acres of land, so that gives us the room to consider those kinds of investment," Smith says of the hotel. "We will deliver, it's just going to be over a time horizon that is consistent with our growth."

While the casino's owners wait to see how their bet will pan out, some businesses along the Route 26 corridor have already experienced a boon owing to the influx of construction workers.

"In terms of the economic cascade component, we've made our investment. I think it will stimulate folks to take a look at this area in terms of retail and restaurants and things that will complement [the casino]," says Smith.

As curious gamblers trek to western Maine to try their hand, local entrepreneurs are tweaking business models and moving into new markets in an effort to get in on the ground level of what some say could be the new economic engine of the region.

"Part of my job has been to advocate for Maine companies as our vendors. We're not guaranteeing them business, but from what I've witnessed, Maine companies can compete," says Smith. "This project validates the spirit of Maine and the energy [Mainers] bring in terms of quality and delivery."

Mainebiz checked in with some western Maine business owners to see what impact the casino has had so far and how they are taking advantage of the region's newest attraction. Read on as the casino's uniform outfitter, a hotel owner and a convenience store proprietor weigh in on the casino's impact to their businesses.

Uniform matters

Shelly Everett

Owns: Golden Mountain Outfitters

Town: South Paris

Impact: 50% increase in overall business since last year; expects new hires and possible retail location

In this economy, starting a small business is not easy, but I had the opportunity to use space in a family-owned building that was in a retail location, so I gave it a shot in February 2011, employing three people.

I worked as a CNA for a number of years and I always loved nursing, so that is how this started. I wanted to sell nursing scrubs and shoes that were comfortable for nurses. Then I expanded from there into public safety uniforms and men's footwear.

I guess we thought we had a niche market that was almost recession-proof; nurses always needs scrubs, municipal workers always need uniforms, so I figured if there was ever a time we were going to make it or break it, it was going to be now.

I was also able to purchase letter equipment from J&W Oil in West Paris and brought on a gentleman who had been working with them to help start a design division.

Really one door after another has opened for me. I contacted Scott Smith late last fall and explained that we did offer uniforms for hospitality services like casinos, and he told me that he would keep me in the loop.

He called me in February and we started meeting about bi-weekly until April. Over the course of these meetings we discussed at length color to match their decor, fabrics and trying to pick uniforms that are going to flatter every body type.

We finalized a two-year contract on March 31, so we'll be supplying the casino for the next two years. Their initial staffing to open was approximately 350 to 400 people and we uniformed about 300 of those.

Each staff member is provided with three sets of uniforms, including shirts and pants that meet certain specification and required footwear from security boots to the non-slip footwear that the kitchen would require. Ninety-five percent of all staff will be getting shirts and pants for what they do. For slot attendants and dealers on the [casino] floor, all the uniforms from top to bottom come from our store.

My understanding is that over the next couple years, the intention is to get to 800 [employees], which would be a tremendous boost for me as a small business and give us the opportunity to diversify; I don't think there are a lot of other businesses here that have had the same opportunity.

This is absolutely our largest contract. Previously our largest was probably the Oxford County Sheriff's Department, but I bet of our gross revenue, 50% of that is going to be the casino this year without a doubt.

Being such a small business, we're very excited about having this contract and worked very hard to make sure we were competitively priced. Locally there are one or two other companies that might have been able to meet the expectation, but mainly our competition is online companies that sell the same types of uniforms and are many times sold manufacturer-direct.

In my opinion, I'm glad that they are not only looking at the bottom line because the service we are providing them with they never would have received online. All their staff has come in one by one to get fitted and have alterations done in our facility, so they knew the level of service they were going to get. I think convenience and service were our biggest selling points.

We are still working with just three employees, but we're absolutely already considering bringing a fourth person on. There is no question that down the road we might need one more part- or full-time employee.

For me, having this contract means having a steady cash flow as long as they have a steady need for uniforms. I'm hoping that will put us in a position to hire more staff and diversify. I think we can do that, certainly if we see our contract extending beyond two years.

My next step is to purchase real estate to put in a storefront on Route 26 somewhere, but right now that market is pretty expensive. But we're in pretty small quarters where we are and have probably a quarter of the floor space we need.

I think everyone in this area has been so depressed because so much industry has shut down in the last five years and there are so many unemployed, but with the casino, I can foresee Route 26 filling up with hotels and restaurants. I'm really hoping it brings a lot more jobs to the area because people need it.

Room and board

Cyndi Robbins

Owns: Poland Spring Resort

Town: Poland

Impact: $100,000 investment in renovations, addition of year-round lodging at one of the resort's three inns.

They'll never have enough rooms for all the gamblers who want to stay there. They are talking 100 to 200 rooms, and we have lodging for 425 people, so it really would be a different type of hotel. They are going after people who are strictly gamblers whereas I am going after tourists who also like to gamble.

On opening day, we saw [our] Lodge [one of three lodging buildings on the resort grounds] was almost sold out and the Presidential Inn almost was [as well]. The weekend they opened last year our occupancy was at 55%. This year, it was at 80%.

How much of that can be attributed to the casino, I don't know, but nightly we are getting walk-ins from people either on their way to the casino or just leaving. One of the things we ask is, 'How did you hear about us?' and a lot of people are now saying they found us through the casino's website.

The Lodge being open year-round is definitely because of the casino [the building was winterized to accommodate year-round guests in anticipation of increased business from the casino]. The Lodge hasn't been open in the winter since 1978, so that's going to be all brand-new business.

One problem with the Maine and Presidential inns [the resort's other two lodging options] was that you can't really see them from the road. The Lodge is right on Route 26 and you always have people stopping there to see if there are rooms available, so we moved the reservation office there this year.

I think we'll be seeing more people coming one or two nights to gamble and see the area.

I think that it's going to be the rare gambler who wants to spend 18 hours a day in the casino. From what I am seeing, they are looking to spend two or three hours there; these are average tourists who are coming to see Maine and this is just one more amenity they can use.

We've been doing a lot of upgrades: We just built a 330-yard driving range last spring and are in the process of building a disc-golf course. These are all things that will attract tourists to stay with us versus someone else, but they are not specifically because of the casino.

Early on, [the casino] did a lot of training for their staff [here], so we've done a lot together, but no co-marketing efforts so far. Also they have started a free shuttle service this past weekend, which they are providing for us.

For the winter, we already have groomed cross-country ski trails provided by Poland Spring Water Co, and at Cyndi's Dockside [the resort's marina/restaurant located on Route 26] we make an ice skating rink every year. But this year we worked with the [local] snowmobile clubs to have trails put in from us to the casino.

We've lost a couple [of employees] because the opportunity was better [at the casino]. I was great with it because one of them was a bookkeeper here and because I couldn't offer her a year-round job. I was very happy for her.

I think the casino will help the general economy — I don't see any downside. I think that everyone on 26 is going to see some impact from this, from antique shops to little country stores. I think it's going to help all of us.

What's in store

Mark Ferguson

Owns: Village Kitchen convenience store and gas station

Town: Poland

Impact: Increased business in his store during construction and initial plans to construct additional buildings for other retail uses

The western Maine mountains are due for a huge increase in potential tourism, and the casino is part of that.

All of a sudden, it's like my store has a million dollar advertising budget because every time you turn on the radio, you hear about [the casino]. This same increased [exposure] helps everyone in the Oxford Hills region.

I think we're off to a good start, but I also think that Maine should continue to be cautious. [Casinos] are one of those industries where you've heard all about social ills that come along with it, but I haven't seen any of that.

I'm more of a service provider, but I also find myself sitting on six acres of land that fits in well with where people expect their services to be, so I'll be doing more development [on that land] and letting other people decide if they want to put in different types of [businesses] in the buildings [I build]. My job right now is to get the square footage and provide places like that a chance to grow.

Mine is a traffic-based business — we're 8 miles from the casino — and my numbers across the board have been up since January. This whole year has been better since last year when they started building the casino.

The impact has already been huge. They hired a bunch of local [construction] guys and when they are not making money, they are not coming into my store to buy pizza and liquor.

Everything they have done has drawn business in. They took an empty field, one that wasn't even being farmed adequately, and now it's a $165 million resort.

This has been a win-win for the area and I think in the long term it could have a significant impact on the tourist market. My business relies on cars coming down Route 11 from New Hampshire, and now for the first time since I've been in Maine, there is a reason for people to come from New Hampshire to Maine.

I don't think that you'll just see growth south of the casino. I think in Oxford as well there is an energy and enthusiasm that the western Maine mountains region is starting to experience.

We have a real opportunity to [attract] the North Conway [New Hampshire] crowd that now find it too busy, because we are easy to get to; it's a beautiful area with lakes and natural wonders.

I've already hired new people and made some shifts to locally produced products. We are trying our best up here to keep as much money as we can local.

Poland has had some significant flips throughout its history. The Poland Spring Resort was literally a legendary resort for the wealthy elite, and thousands of people worked there. But that was 100 years ago. Then things changed and [the area] started to require some economic diversity.

It's become a Portland bedroom community and it's always been a Lewiston/Auburn bedroom community. We are going to need more services and I see the business base expanding, and with [the casino] I can see it expanding quite a bit more.