Penn trumps Caesars in Ohio

Hard Rock Rocksino regained its top spot in Ohio last month, grossing just over $20 million (+9%). Just imagine what it could do if it had table games. The Caesars danielgilbertEntertainment/Dan Gilbert trifecta continued to underperform, with a flat month in Cleveland ($20 million), a 3% decline in Cincinnati ($17 million) and a 5% dip at ThistleDown Racino ($9 million). Were the latter not located inland, it should inherit the “Mistake by the Lake” moniker. Pinnacle Entertainment‘s decision to compete with its Indiana casino by developing Belterra Park also continues to look like an uncharacteristic blunder but at least the racino is steadily improving: Up 45% to $7 million.

Eldorado ResortsScioto Downs was up 3%, to $13.5 million, while it was good news across the board at the myriad Penn National Gaming properties. Hollywood Columbus rose 3.5% to $19 million and Hollywood Toledo ascended 5% to $18 million. Its racinos also continued to produce, with Hollywood Mahoning Valley raking in $9 million for an 11% gain and Hollywood Dayton up 2% to $8 million. Independent Miami Valley Gaming had a symmetrical month, turning a 12% gain to reach $12 million.

* Through a kind of reverse loophole, Finger Lakes Gaming & Racetrack was left out Andrew_Cuomoof the tax reduction that Gov. Andrew Cuomo (D) signed into law as part of New York State‘s recent casino expansion. Because Finger Lakes falls into the Seneca Indian Nation‘s exclusivity zone, it has been paying a punitive 69% to the state, plus a subsidy for horseracing, leaving the racino’s owners 21% of their gambling revenue to make ends meet upon. However, Cuomo and lawmakers have seen reason and will apply a more-clement (but still painful) 59% levy to the racino. Imminent rival-to-be, $425 million Lago Resort & Casino will pay only 37% tax on slots and 10% from table games.

Moody’s Investment Services said Lago spells bad news for Finger Lakes and Batavia Downs. “Lago’s location and product offerings uniquely position it to cannibalize gaming customers,” wrote Moody’s analyst Peter Trombetta. The best hope for those racinos is if the Oneida Nation persuades the courts to throw out Lago’s casino concession. They’re all swimming upstream against the state’s Facility Location Board deemed when it wrote of of a competing casino bidder, “We do not expect Tioga Downs to impact Lago as it is about two hours south and will be competing in different markets.”

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