Northwest Indiana's five casinos raked in $65.87 million less in 2011 than the year before, a 5.5 percent drop that comes as neighboring states are preparing to significantly increase the competition for Midwest gaming dollars.
The five Northwest Indiana boats had total revenues of $1.13 billion in 2011, as compared to almost $1.2 billion in 2010, according to Indiana Gaming Commission Revenue reports. In 2010, the five Northwest Indiana boats eked out a small gain in revenues.
The drop in Northwest Indiana casino revenues and the flagging fortunes of the state's other casinos mainly are due to the weak economy, said Indiana Gaming Insight Editor Ed Feigenbaum. The same trend has taken hold nationally and is hitting other entertainment choices such as movies.
"People are just reluctant to dig into their wallets for these types of discretionary expenditures," Feigenbaum said.
And when Indiana casinos suffer a string of bad luck, so does the Indiana state budget. A recent bipartisan committee report delivered to the State Budget Committee forecast a 6.5 percent drop in total gaming tax revenue in fiscal 2012 and another 8.2 percent drop in 2013.
The five Northwest Indiana boats in December realized their first year-over-year monthly revenue increase in eight months, with overall revenue increasing 3.2 percent, according to the Indiana Gaming Commission. In all, casino revenues increased in only three months of 2011 and were down in the other nine.
New cross-state competition is so far only a small factor in the overall Indiana decline, Feigenbaum said. However that could start to change next year when new casinos open in Ohio. In Kentucky, Gov. Steve Beshear is pushing for a constitutional amendment that would allow casinos at horse tracks. And it is widely expected Illinois legislators will make another stab at expanding gaming there.
Statewide, casinos raked in $2.73 billion in 2011, a drop of 2.3 percent as compared to 2010, according to Indiana Gaming Insight.
Ameristar Casino in East Chicago was the only boat in Northwest Indiana to realize an increase in revenues in 2011. The boat grossed $245.1 million for the year, as compared to $244.8 million in 2010, for an almost 1 percent increase, according to Indiana Gaming Commission revenue reports.
Total 2011 revenue at Horseshoe Casino, long the heavyweight of Indiana gaming, dropped $49 million for the year, a decline of almost 8.8 percent. The boat in Hammond raked in $509.5 million in 2011 as compared to $558.51 million in 2010.
Ameristar realized a measure of success despite the struggling economy by continuing to concentrate on the basics of the business in 2011, Ameristar Assistant General Manager Matt Schuffert said.
"It's a continuing focus on slots — giving our guests the games they want, as well as guest services," Schuffert said. "Those are the things we continue to focus on given these tough times."
The casino also was successful in getting the word out that the East Chicago gaming boat and hotel remain easy to get to despite the closure of the Cline Avenue bridge two years ago, Schuffert added.
It appears new promotional programs and the advertising that goes with them started to pay dividends for Horseshoe Casino in December, General Manager Dan Nita said. December was the only month in 2011 when revenues at Horseshoe increased on a year-over-year basis.
Nita attributed the overall drop in revenues at Northwest Indiana's five boats in 2011 to new gaming opportunities across state borders, in particular the new Rivers Casino, in Des Plaines, Ill.
"It's just due to the additional competition," Nita said. "The pie is only so big."
