Illinois: Cause for optimism?

Late last month, Bally Technologies landed a massive order of 4,000+ video poker terminals — VGTs in industry parlance — in Illinois. Y’all remember slot routes in the Land of Lincoln? They’ve taken so long to be put into place its legalization feels like an epoch ago. On top of those 4K worth of machines (half leased, half sold outright), Bally did such a good sales job for its MultiConnect management software, that 75% of the VGTs will be hooked into that. Two of the largest video poker outlets in Illinois will have a game inventory that is over 50% Bally-originated.

That’s quite a coup for BYI but casino operators in the state might be forgiven for not throwing a party. It’s just one more obstacle the state has thrown in their path, in what seems like a perverse attempt to destroy an industry it has taken decades to cultivate. Illinois casinos managed a 6% revenue increase last month, for a statewide gross of $138 million. Since August 2011 was the first full month of operations at Rivers Casino, in Des Plaines, we no longer have to make the dreaded same-store adjustment. Against this somewhat cheery news, one must note a slight downturn in admissions (1%) — but customers spent roughly 7% more per trip. So that’s good.

However, Neil Bluhm‘s suburban-Chicago casino was up 34% from September ’11, and its $40 million gross absolutely crushes the competition. Next-best Grand Victoria Elgin managed but $16 million and change (-9%). That and Penn National Gaming‘s two nearby riverboats, combined, barely outgross Rivers Casino. And this was a good month for Penn, with a 16% gain at Empress Joliet more than offsetting a modest decline aboard Hollywood Aurora. Still feeling the pinch from Penn and Bluhm is Harrah’s Joliet, off 8%. Downstate, business continues to dribble away towards Missouri. Casino Queen in East St. Louis was off 5.5% while Penn’s forlorn Alton Belle (once a crown jewel of Argosy Gaming) slipped 5%. With grosses like September’s $5.6 million, it makes you wonder how Penn keeps the place afloat. Mid-state, business was flat at Boyd Gaming‘s Par-A-Dice riverboat.

So it looks as though Illinois has finally — finally! — reached a turnaround point in its seemingly endless decline. However, the effect of those thousands of video poker machines has yet to be felt. Besides, having staved off casino expansion this year, Gov. Pat Quinn (D) promises to revisit the issue in the next Lege. So operators, enjoy the moment and brace yourselves for the next indignity.

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