If you think Hammond's budget next year is going to be tough, this indicates that it will be a exceptionally difficult budget.
9.1% Decline in Horseshoe Revenue....although overall revenue up 6% was that because of a reduction in staff?
http://www.nwitimes.com/business/local/article_37c0b6fd-309a-5ea1-b73f-17e54bc81060.htmlQuote:
NWI casino revenues continue their 2010 decline
By Keith Benman keith.benman@nwi.com, (219) 933-3326 | Posted: Tuesday, October 11, 2011 3:30 pm |
Total revenues at Northwest Indiana casinos dropped for a fifth straight month in September, declining 8.1 percent overall as competition from other states heats up.
The five boats raked in $88.69 million in September, as compared to $96.5 million in September 2010, according to the monthly revenue report from the Indiana Gaming Commission.
Revenue declined at all five casinos with the two Majestic Star boats suffering the largest percentage decrease, at 11 percent combined, followed by Horseshoe Casino, with a 9.1 percent decline, according to the gaming commission report.
It used to be said that gaming was immune to recessions, but that is no longer true now that the supply of gaming establishments is catching up with demand, according to Horseshoe Casino Vice President for Finance Chris Riley.
"It's not a recession-proof industry anymore," Riley said.
Nevertheless, Riley noted some encouraging trends in the month-to-month revenue numbers at the Hammond casino, with attendance increasing 6.5 percent in September from the month before and overall revenue up almost 6 percent.
Northwest Indiana casinos have seen increased competition on the ground this year, with the new Rivers Casino opening during the summer in Des Plaines, Ill., and two new casinos opening in Michigan just north of the Indiana state line.
And there may be more to come. In May, the Illinois legislature approved a wholesale expansion of gambling that would add five new land-based casinos, including the first-ever in Chicago. But Gov. Pat Quinn has called the expansion "top heavy" and has not signed the bill.
Most people are pointing to the legislature's veto session at the end of October as a time for a compromise to emerge.
Indiana Gov. Mitch Daniels recently said he is not in favor of increasing the number of casinos in Indiana but that he is "open-minded" about allowing casinos to move away from the water to land-based operations.
Gary leaders have sought to take one of the licenses for Majestic Star and convert it into one for a land-based casino adjacent to the Borman Expressway. They believe it would bring in new players and lead to new development near the casino.
Revenue in September declined at all five Northwest Indiana boats compared to September 2010. Blue Chip Casino, in Michigan City, had the smallest percentage decline in revenue in September. The $14.38 million it raked in was 4.6 percent less than the $15.07 million it raked in during the year-ago month.
Ameristar Casino, in East Chicago, had a total take of $18.99 million in September, representing an almost 6 percent decline from the $20.2 million it took in a year ago.
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