Midwest shakes off malaise

Yes, there was an extra weekend day this year but let’s look at the glass half-full, as regional gaming markets shook off their malaise. Illinois Grand Victoria ILwas up 2% despite mild weakness in the St. Louis market. Empress Joliet (+10%) was the biggest gainer of the month, followed by Rivers Casino (+9%), while MGM Resorts International enjoyed a 5% bounce at Grand Victoria (above). Also still producing is Harrah’s Metropolis, up 8%. The bulk of the Penn National Gaming portfolio underperformed, with Hollywood Aurora down 6% and Argosy Alton off 3%. Harrah’s Joliet lost business, down 7% while Boyd Gaming‘s Par-A-Dice was off 3%.

Missouri did even better, up 3%. Despite a 2% increase in revenue at River City, it was surprisingly weak month for Pinnacle Entertainment, down 1% at Ameristar St. Charles and also losing a percentage point at Ameristar Kansas City. Penn, by contrast, had a breakout month, up 15% at Argosy Riverside and 10% at Hollywood Casino St. Louis. Isle of Capri Kansas City also felt the good vibes, up 9%, part of a 5% climb in Isle’s Missouri portfolio. Foot traffic at Show-Me State casinos may have been down 2% but spending was up 5.5%. Harrah’s Metropolis seems to have taken some of the bloom off Isle of Capri Cape Girardeau, by the way, down 1% for the month.

Since Ohio is still a maturing market, overall revenue comparisons are like apples to oranges. But it raked in a Missouri-like $143 million, with Hard Rock Rocksino leading the charge ($19 million gross), up 19% — a feat the more impressive for being accomplished without table games. Belterra Park grossed a state low of $6 million but management is danielgilbertdigging itself out of the cellar with a 45% revenue increase. MTR Gaming‘s Scioto Downs was up 9% while Dan Gilbert‘s ThistleDown Park went into a -14.5% spiral. (If you can’t make money during the apex of racing season, when can you make it?) The four full-service casinos remained relatively stable, with Hollywood Toledo up 4% ($17 million), as was Hollywood Columbus ($18 million). Horseshoe Cleveland grossed $18 million, flat from last year, and Horseshoe Cincinnati‘s $17 million was good for a 2% gross.

Really feeling the love were Indiana casinos, which saw spend-per-visitor climb 15%, despite 9% fewer admissions. Aside from Majestic Star I (-13%), nobody had a really adverse month and some of the Horseshoe-Southern-Indiana-288x172vulnerable properties, like Horseshoe Southern Indiana (+4%) saw growth, although Cincinnati-area casinos and racinos continue to chip away at the southern tier. Breakout performers included Ameristar East Chicago (+16%), French Lick Resort (14%) and Horseshoe Hammond (+9%). Mind you, if free-play tax deductions are added back to gaming revenue, many of these comparisons swing from positive to negative (gaming analysts differ on this) but I thought I’d accentuate the positive this month.

* If you feel like wading to the very bottom of page 20 of an IRS report, you’ll see that socking it to you for $600 slot jackpots remains a priority item with Uncle Sam.

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