{"id":503,"date":"2008-08-25T17:01:00","date_gmt":"2008-08-26T01:01:00","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/blogs\/dmckee\/index.cfm\/2008\/8\/25\/On-the-other-hand-"},"modified":"2008-08-25T17:01:00","modified_gmt":"2008-08-26T01:01:00","slug":"on-the-other-hand","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/on-the-other-hand\/","title":{"rendered":"On the other hand …"},"content":{"rendered":"

… if Illinois casinos are sucking wind (which they are), why hasn't this redounded more to the benefit of neighboring states? For instance, it looks like Indiana<\/strong> had a good July, but once you back out two new racinos, a 2% gain turns into an -11% retreat from last year's numbers.<\/p>\n

And the northern Indiana boats ought to be doing better, even if Horseshoe Hammond<\/em>'s revenues (-18%) were depressed by a temporary closure and Boyd Gaming<\/strong>'s beleagured Blue Chip<\/em> (-40%) is a drag anchor on the regional average. Still, a -15.5% year\/year comparison — even with those two factors taken into consideration — doesn't suggest floods of nicotene-deprived gamblers storming the gangways.<\/p>\n

Only Majestic Star<\/em>, of all unlikely vessels, had a revenue-positive July. Year to date, Ameristar Casinos<\/strong> is doing the best of any single company, which makes its recent decision to run up the white flag and sack 244 employees, fretful over a newly expanded Horseshoe Hammond<\/em>, look doubly defeatist. Current Ameristar management just doesn't look like they're in it for the long haul (read<\/em> "not cut out for it" or "lack the stomach for it").<\/p>\n

A change of brand, to Horseshoe, isn't doing the trick — yet — for Harrah's Entertainment<\/strong>'s Glory of Rome<\/em>. The glamorously named Horseshoe Southern Indiana<\/strong> (formerly Caesars Indiana) is the only casino in the Hoosier State's southern reaches to post negative revenue comparisons for every month of 2008. The others either swing like weathervanes or, in the case of Casino Aztar<\/em>, improved dramatically with a change in management.<\/p>\n

If French Lick<\/strong> isn't licked, it appears to have crested. The turnaround at Casino Aztar<\/em> (currently under state trusteeship) blunted its revenue growth, as did the debut of the Indiana Live<\/strong> and Hoosier Park<\/strong> racinos. Until the economy improves, it looks like it's maxed-out at $8.5 million-$9 million per month.<\/p>\n

Missouri is another puzzle<\/strong>, down 3% once the effects of Pinnacle Entertainment<\/strong>'s nascent Lumiere Place<\/strong> are subtracted. The St. Louis market, closest to Illinois, was -8%, while Kansas City — the market with the least to gain from Illinois' troubles — was up 2%. Go figure.<\/p>\n

All companies except Harrah's had a revenue-positive July, even Isle of Capri Casinos<\/strong>. Harrah's lost market share in St. Louis and<\/em> Kansas City, and Ameristar gained in both markets. (See previous comments about unwarrantedly panicky Ameristar execs.)<\/p>\n

And see them again<\/strong> once we note that Ameristar had the best July of any publicly traded company in Iowa, +3%. (Harrah's and Penn were flat, Isle down almost 6%.) Ameristar had the third-highest performing casino in the market, trailing Harrah's Horseshoe-branded racino and the Prairie Meadows<\/strong> track. A good month at the tracks offset a flat one on the riverboat, making Iowa revenue-positive for the month.<\/p>\n

This was the first full month of year-over-year comparisons for Isle's newest casino, in Waterloo<\/strong>, which was down over 13%. Wow. The bloom went off that rose fast. The previous Isle regime's business model of growing revenues by opening more and more casinos is well and truly out of gas.<\/p>\n

Isle's Bettendorf<\/strong> casino, however, was the only one of the company's quartet of Hawkeye State riverboats to increase revenue in July.  Could it be … the Illinois smoking ban coming into play? I'm going to opt for Occam's Razor and say,  "Yes."<\/p>\n","protected":false},"excerpt":{"rendered":"

… if Illinois casinos are sucking wind (which they are), why hasn't this redounded more to the benefit of neighboring states? For instance, it looks like Indiana had a good July, but once you back out two new racinos, a … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[40,60,15,83,7,67,58,68,85,39,69,30],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/503"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=503"}],"version-history":[{"count":0,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/503\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}