A slight chill in the air

Even allowing for additional weekend in 2016, gaming results last month were a tad frosty,  shall we say? The best market was Missouri, which was merely flat. That was Lumiere-252largely due to strength in the St. Louis area, where Pinnacle Entertainment‘s River City was up 4%, to $19 million. Ameristar St. Charles was less fortunate, grossing $22 million but down 5.5%. The latter lost market share to Penn National Gaming/GLPI‘s Hollywood St. Louis, up 6% to $19 million. Tropicana Entertainment had a good month at Lumiere Place (right), up 5% to $12 million. The brightest light in Kansas City was Ameristar Kansas City, down 1% to $16.5 million. Runner-up Harrah’s North Kansas City was down 9%, to $14.5 million. Penn/GLPI’s Argosy Riverside grossed $12.5 million, a 3% slippage. Isle of Capri Kansas City balanced a $6 million gross with a 6% falloff.

Modulations in most of the outlying markets were relatively insignificant, save for a 9% drop at Affinity Gaming‘s Mark Twain Casino ($3 million) and a 7% dip — to $6 million — at Isle of Capri Boonsville.

Gamblers were neither more flush or luckier in Ohio, where gaming revenues were 3% off the pace. We don’t have win/slot/day numbers (which only Penn releases) but can vouch for the effects of road construction have been felt, with an 11% plunge and $15 gross. Toledo CasinoHollywood Columbus, by comparison, was up a bit, 1% higher on an $18 million gross. Hollywood Dayton was up 1%, to nearly $8 million, while Hollywood Austintown continued to be a little powerhouse, up 3% on an $8 million gross.

Pinnacle’s Belterra Park investment is finally paying off, up 10% to $7 million. Eldorado Resorts was not so fortunate at Scioto Downs, falling 6% to $12 million. Hard Rock Rocksino suffered an uncharacteristic 5% lag, coming in at $18 million. That made Hollywood Columbus incrementally #1 in the state, while most of Dan Gilbert‘s properties struggle with the “Jack” brand. True, it was good for Thistledown Racing, up 12% to almost $10 million. But Jack Cleveland fell 12%, to $16.5 million and Jack Cincinnati slid almost 8% to $16 million. Sorry about that, Jack.

Gamblers in Indiana spent 5% more but turned out in 10% fewer numbers, translating into a revenue decline in excess of 5%. It should be noted that, even with one less weekend bluechip_exteriorin December 2015, the Hoosier State grossed more. Chicagoland was chilly this year, down 8%. If that’s what happens in ostensibly good times, what does it portend if and when the Pokagon Band opens its casino — planned to be the state’s largest — in South Bend? Both Horseshoe Hammond ($32 million, -13%) and Ameristar East Chicago ($18 million, 12%) were hard-hit, as was Majestic Star II ($4.5 million, -16%), although Majestic Star I came off relatively unscathed ($7 million, -2%). Tribally besieged Blue Chip Casino dropped 12% to $12 million.

Fortunes were more stable at the southern end of the Hoosier State, with Horseshoe Southern Indiana slipping 3% but grossing $21 million. Hollywood Lawrenceburg slipped 5%, to $14 million. Tropicana Evansville was flat, despite construction disruption, grossing $11 million. Full House Resorts had a good month at Rising Sun, up 2.5% to $4.5 million, although the gaming inventory is reported to be far in excess of what foot traffic warrants. Elsewhere in the state, French Lick Resort gained 5%, for almost $8 million, while the racinos underperformed — flat at Indiana Downs (a still-impressive $21.5 million) and a 3% dip to $16 million at Hoosier Park.

If this caution in the Midwest regional markets trickles down, it won’t bode well for the next set or two of monthly number from Las Vegas. If people are loath to gamble where it is right at their finger trips, are they going to travel to do it? People automatically assume a Donald Trump administration is going to mean a boom for casinos but a long view is clearly in order.

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