Although customers are holding their purse strings tighter, Station Casinos registered noteworthy growth in earnings last quarter. Powered by Graton Resort & Casino in California, Station reported revenue of $55 million, up from $7 million a year earlier. In the larger picture it 
was a 2% increase in revenue. Cash flow was up 7%, despite being sapped somewhat by Ultimate Gaming. Disruptions to food and beverage service — part of a $55 million renovation — drove those sectors down but Station is getting a strong showing out of Red Rock Resort‘s new Mercadito — as well it should. “Despite the softness in revenues and some unanticipated costs, we were still able to yield significant flow-through this quarter,” stated CFO Marc Falcone.
“The big picture is that the economic indicators are better,” Falcone added. “Visits are stable, but customers are hesitant to spend. We’re still not seeing the levels of discretionary income we saw in the past.” Perhaps it’s partly a service issue. One Kimberly Richter writes, “Recently a maintenance tech came into my suite to fix a TV that wasn’t working, and I got an earful about how management had called this giant all-staff meeting. Everyone was required to attend. They went on and on about the exciting remodel money they’ll be spending on Red Rock and Green Valley [Ranch], then got quiet and mean when employees chimed in to ask about their cost of living increase.” Station ownership must never forget who made them rich.
* Horseshoe Casino Cincinnati is having second thoughts, petitioning Ohio for outdoor slots to accommodate patrons who smoke. 
It’s part of a trend shared by Penn National Gaming casinos in Columbus and Toledo, both of which are creating gambling areas for smokers, reneging on a 2009 campaign promise. Horseshoe’s slot patio, the largest casino smoking area in the state, seems a cinch for approval. The casino estimates that the deck could generate another $10 million in casino revenue per year.
The question is: What took them so long? You can’t have gambling without smoking, as Illinois casinos discovered to their woe. The lack of smoking at Belterra Park may explain that casino’s financial malaise. The utterly smoke-free environment of Horseshoe Casino Cleveland may help explain why so many players have defected to Caesars Entertainment‘s sibling Thistledown Racino.
* Happy fifth anniversary to Rivers Casino in Pittsburgh. As the city’s Post-Gazette opines, “after five years in Pittsburgh, we can say that the Rivers Casino, neither a calamity nor a cure-all, has on balance proved a good bet for taxpayers.”
