Boom in the Rust Belt

You’d be forgiven if you did a double take upon seeing the latest casino-revenue numbers out of the Midwest. Business is up—to sometimes-unprecedented degrees. Take Ohio, for instance. It’s always a casino-friendly state … but a 19% upsurge in revenue? In January, no less? Well, I suppose people have to go somewhere when it’s cold outside but the amount of discretionary dollars they have to spend is pretty impressive, especially when you consider that the out-of-season racinos did 20.5% better this year. Not even an extra weekend day (and there will be another in February) comes close to explaining it.

The overall gross was $167.5 million. MGM Northfield Park held onto the top spot with $23 million (no table games, remember), a 17% increase. Closest was Hollywood Columbus with $20.5% million, up 18%, while Hollywood Toledo grossed $16 million, ‘only’ 10.5% higher. Jack Cleveland surpassed it with $18 million, a 17% gain, while Hard Rock Cincinnati jumped 22.5% to $19 million. Scioto Downs grossed $15.5 million for a 22% gain and Miami Valley Gaming also posted $15.5 million, a 24% surge. Jack Thistledown‘s $12 million was a 22% jump, while Belterra Park grossed $7 million, a 20% leap. Not to be left behind, Hollywood Dayton‘s $10 million was a 24% vault and Hollywood Mahoning Valley gained 17.5% to finish at $11 million.

Next door in Indiana was scarcely less impressive, leaping 20% to $185 million. This was the first month of table games at Harrah’s Hoosier Park and Indiana Grand, which swelled the numbers somewhat, to the tune of $6.5 million. Subtracting tables, the two racinos were 9% and 9.5% higher, respectively. Throw in that table play and they boomed 34.5% and 32.5%, grossing $17 million and $24 million. Caesars Southern Indiana also continues to hit it off with players, catapulting 31% to $22 million. Southern-tier casinos that didn’t do well were Rising Star, down 1.5% to $3 million, and French Lick Resort, up only 3% to $7 million. Everyone else prospered, with Belterra up 13% to $8 million, Tropicana Evansville gaining 12% to $12.5 million and Hollywood Casino Lawrenceburg jumping 16% to $14 million.

Up north, the two Majestic Star boats hadn’t gotten the prosperity message. OK, Majestic Star I gained 6% to $7 million but Majestic Star II only managed an extra 1.5% to $4.5 million. Evidently a rising tide doesn’t lift all riverboats. By contrast, business was booming throughout the rest of the northern tier. Ameristar East Chicago was up 13% to $18 million, Horseshoe Hammond leapt 21% to $34.5 million and Blue Chip vaulted 22% to $12 million. Hoosier State sports books generated $170 million in handle, with casinos keeping $13 million. Basketball wagering was credited for the healthy numbers, 35% of total handle. Online wagering was 72% of the total, even before PointsBet, BetIndiana and BetMGM have launched. Ameristar/DraftKings led handle, with $66 million, followed by Blue Chip/FanDuel with $49.5 million. French Lick/BetRivers was a distant third with $8 million.

“Indiana has been remarkably progressive in the way it has managed its sports betting industry, rivaling New Jersey as the most forward-thinking legal jurisdiction,” said PlayUSA.com analyst Dustin Gouker. “Early adoption of online betting, which has been atypical among states with legal sports betting, has been an enormous boost. And innovations such as allowing prop bets for the Super Bowl and opening the door to Oscars betting show Indiana is willing to take risks in opening new markets, which will serve the state well.”

Illinois gaming revenue grew more modestly—6.5%—but it grew, probably on account of the extra weekend day. Total statewide gross was $101 million, with $37.5 million of that coming from Rivers Casino Des Plaines, up a whopping 22%. It was a mixed bag for the rest of the state. Eldorado Resorts appears to be getting the hang of Grand Victoria, up 5% to $11.5 million, while Empress Joliet gained 7.5% to $8 million. But Harrah’s Joliet slipped 8% to $12 million and Hollywood Aurora was down 9% to $7.5 million. Jumer’s Casino Rock Island dipped 5% to $4 million but Par-A-Dice gained 5.5% to $5 million. In the southern tier, Harrah’s Metropolis stumbled 2% to $5.5 million, Argosy Belle tumbled 10.5% to $3 million while Casino Queen gained 5% to $7 million.

Most casino revenues are so penny-ante in Iowa (which was up 10% last month) that we overlook the Hawkeye State. However, it’s worth seeing just how much of the overall revenue pie Eldorado is going to get when it finishes engorging Caesars Entertainment. The latter had a boomlet at its Horseshoe-branded racino, up 11% to $14 million and business was still more volatile at Harrah’s Council Bluffs, jumping 13.5% to $6 million. Eldorado grossed $5 million at Isle of Capri Bettendorf (up 7.5%) and $6.5 million (+4.5%) at The Isle Casino Waterloo. That would give a combined Eldorado/Caesars a monthly $31.5 million out of $113 million/month. Hardly an undue concentration of wealth, especially when the merged Caesars would have two casinos each on opposite sides of the state. (Four in Atlantic City may be harder to justify.)

Finally (whew!) we head south to Missouri, where gambling revenues hopped 10% to $139 million. A 13% increase in table win ($23 million) drove the bus. That extra weekend day saved Eldorado’s bacon at Lumiere Place, flat for $12.5 million. Player favorite in the St. Louis area was Ameristar St. Charles, grossing $21 million, up 11%. Hollywood Casino St. Louis gained 16.5% to $19 million while sister property River City jumped 18% to $19 million. In the Kansas City market, Argosy Riverside was flat at $12.5 million, Isle of Capri gained 8.5% to $5 million, Harrah’s North Kansas City vaulted 15% to $14.5 million and Ameristar Kansas City grossed $15 million, a 7% gain. Our congratulations to everybody who had a good month, let alone a great one.