Illinois disappoints, Ohio surprises and Golden Nugget opens early

Except for a mild, 2% increase at Harrah’s Joliet, it was a very schizoid November for Illinois, whose casinos came in 4% below last year. There was one less weekend day, which some will cite as an alibi … but then how does one explain the 17% upsurge at Harrah’s Metropolis or the 4% increase at Rivers Casino? Metropolis did almost as well in dollars grossed as GLPI‘s Casino Queen in East St. Louis, which spiraled 17% downwards. Others who suffered heavily were Argosy Alton (-14%), Boyd Gaming‘s Par-A-Dice (-12%) and MGM Resort International‘s Grand Victoria (13%). Lesser declines were posted by Jumer’s Casino Rock Island (-5%) and Empress Joliet (-7%).

A couple of states over, in Ohio, the proliferation of racinos contributed to a 30% growth in gambling revenue for November. The first thing one notices is that the Caesars Entertainment properties are having a much harder time holding onto players than are the Penn National Gaming ones. While Hollywood Columbus and Hollywood Toledo recorded only single-digit percentage declines, Horseshoe Cleveland was down 20%, Horseshoe Cincinnati slipped 10% and Thistledown Racetrack went into a -33% tailspin.

Much of the Thistledown misfortune is undoubtedly attributable to nearby Hard Rock Rocksino, the dominant-grossing racino in the state. Penn’s Columbus competitor, Scioto Downs, slid 9%, so that particular market may be maxed out. Pinnacle Entertainment‘s Belterra Park continues to struggle ($105/slot/day), the lowest-grossing racino in the state, greatly disappointing J.P. Morgan analyst Joseph Greff, who expected it to do 50% better. All of the Penn properties missed Greff’s projections — but none anywhere near so badly. However, Penn’s Hollywood Austintown may be the Buckeye State’s gold-star overachiever, grossing $268/slot/day.

* There’s a truism that nobody ever dies in a Las Vegas casino but, in this incident, the local constabulary made an exception. What’s most alarming about the story is that bandit in question had been conducting a one-man crime wave against area casinos and “during the previous robberies the man was believed to be connected with, he would go into casinos and confront clerks by brandishing a weapon. Several times he claimed to have an explosive on him during the robberies, police said.” And there we were, blithely presuming ourselves to be safe while Las Vegas Metro shadowed the Rio Bandito.

* Tilman Fertitta sprang a surprise on the Lake Charles community, opening his Golden Nugget Lake Charles a day ahead of schedule. The sneak opening wasn’t advertised except through word of mouth. “Construction crews rushed to put the finishing touches on the project” which was finished in the nick of time to welcome VIP guests. Fertitta is already leveraging his heavy business presence in the Lone Star State, with 5/6 of player-loyalty cards being scarfed up by Texans (50,000 to date). The warm-weather amenities (“spa, pool and lazy river, and beach front with volleyball courts”) aren’t finished yet. The restaurant amenities will be familiar to anyone who’s patronized a Golden Nugget but there’s a much heavier emphasis on retail here (eight stores): Another portent of gaming’s shifting priorities.

* With 16 submissions through which to sift, the New York Gaming Facility Location Board still isn’t ready to go into decision-making mode quite yet. It will meet Tuesday to review “the financial history and employment history of particular persons or corporations” who are applying. Given the size of some of the applicants (Genting Group, Caesars Entertainment), that could be quite a task.