That’s what passes for optimism these days when confronted by ledgers like those posted by casinos in Illinois and Indiana for December. While the former’s 5% decline hardly looks like cause for celebration, it at least suggests the Land of Lincoln can’t fall much farther than it did during the catastrophe that was 2008 (-21% for the year and -28% in December).
However, it does not imply that this is an opportune moment for legalizing bar-top gambling, replacing existing riverboats with costly new onshore facilities, building out the 10th license (in Des Plaines) or — least of all — adding several new casino licenses, as the Lege is contemplating. Illinois’ $106 million in casino revenue was the lowest total posted in the last two years … hardly the most propitious climate for expansion.
Brightest spot amidst the gloom was Boyd Gaming‘s Par-A-Dice riverboat, the sole casino to post an increase (2%). By contrast, the novelty factor finally wore off Casino Rock Island‘s new facility (-4%), which had been posting year/year growth as great as November’s +170%. Despite having to literally rebuild business at Empress Joliet, Penn National Gaming was the biggest aggregate earner for the month ($31 million), while Harrah’s Entertainment edged it out for the greatest aggregate decline (-7%).
The single most lucrative casino remains the MGM Mirage/Hyatt joint venture, Grand Victoria. Despite smoking bans and severe taxation, MGM continues to hang onto the Chicago market … and no wonder, when the choice is between half of $293 million last year vs. 100% of nothing, were MGM to evacuate Illinois. Grand Victoria and Harrah’s Joliet also continue disproportionately large shares of revenue (+9% and +8%, respectively) relative to their number of gambling positions.
The state-sanctioned decimation of casino revenue in Illinois has, oddly, never redounded greatly to the benefit of northern Indiana. Its tier of casinos has, at best, recorded modest gains this year and — more recently — seen the numbers go south (-11.5% in November, -4% last month). Boyd had the good-news story here, too, as Blue Chip continues to stave off new competition from Michigan, up 9.5% in December. It books nearly as much revenue, single-handed as Don Barden‘s two Majestic Star vessels manage combined.
The market leader, however, continues to be Harrah’s monstrously large Horseshoe Hammond, dwarfing all competitors with $39 million for the month and $527 million on the year. Its strength was diluted by Horseshoe Southern Indiana‘s subpar performance, giving Harrah’s a statewide 6% decline for the month.
Only Penn’s Hollywood Casino Lawrenceburg comes within shouting distance of the Hammond numbers (with $35 million and $426 million, respectively). That was sufficient to give Penn 11% growth for December and bragging rights over everyone else.
The state’s two newish racinos, Indiana Live (+30% last month) and Hoosier Park, continue to bleed the southern riverboats. Privately owned Grand Victoria (-18% last year) is steadily slipping and threatens French Lick Casino‘s stranglehold on last place ($84 million last year but +1.5% in December). Sadly, Casino Aztar‘s comeback story seems to have peaked … but at least it was the lone southern riverboat to eke out a gain (1%) in 2009. We’ll mark that a victory.
Grand Victoria in Elgin has pretty much the northern suburbs in Chicagoland to itself until the casino in Des Plaines opens in the next couple of years. Harrahs Hammond is huge, located about 20 minutes from downtown Chicago and I constantly hear them advertising on the radio. I drove buy a bus the other day on Lincoln Avenue near where I live in Chicago and it was a Harrahs chartered bus heading to Harrahs Hammond. It probably goes back and forth twice a day to Hammond.