Indiana Casino Revenues Challenged by Snow
Snow has left Indiana with less than stellar casino revenues for the month of December.
Every casino hopes to do well but there will be times when traffic numbers will be low due to varying issues. From the weather to an extra weekend, there are many reasons why casino revenues can go up or down. As an operator, it is important to learn how to make changes in order to reap more rewards or handle the slower time frames. In Indiana, the state recently suffered a setback in casino gaming revenues due to snowy weather.
Snow Stops Gaming
When it snows in Indiana, it really can come down. Snow was a big deal in the month of December, basically shutting down many northeastern states in the US. The Indiana Gaming Commission recently reported that the five casinos located in the region saw a huge slump in revenues due to the white stuff. Snowy weather led to the casinos dropping 11.6% in regards to revenue earnings. In total, the five casinos earned $73.27 million which is less than the $82.85 million earned in December 2015.
When you look at totals for the year, the state saw a dip of 2.8% when compared to overall totals in 2015. Horseshoe Hammond Vice President of Finances, Steve Cox, commented on the drop in revenues by stating that the month of December saw such totals due to the weather. With so much snow coming in, visitors just stayed home. Cox also contributes the fact that Christmas Eve took place on a Saturday this year to low revenue totals. Everyone stayed home with family and celebrated instead of hitting the casinos. Cox said that the weather impacts things differently, especially around the lake and he hopes is ready for 2017 to be in full swing.
According to the data provided by the Indiana Gaming Commission, the five casinos were able to see $967,820,455 in gaming revenues for 2016 when $976,656,526 was earned in 2015. The two casinos to see gains in 2016 were the Ameristar Casino located in East Chicago and Michigan City’s Blue Chip Casino.
The yearly revenues for the Ameristar Casino were up from $225,992,338 in 2015 to $229,658,931 in 2016. For the Blue Chip Casino, the earnings rose from $157,436,110 in 2015 to $161,957,776 for last year. However, in December, the Ameristar saw a significant drop in earnings due to low traffic numbers. In 2015, the casino had earned just over $20 million for the month while last year, the casino only produced $17.76 million. For Blue Chip, they also saw a decrease going from $13.61 million in 2015 to $12 million last year.
The three other casinos saw drops in revenues for the month as well as year. The Horseshoe Hammond Casino, Majestic Star Casinos I and II all seen drops in their profit numbers. The Horseshoe earned $432,836,537 in 2015 only to drop significantly to $418,542,159 for the year. The Majestic Star I was down to just over $90 million from being over $92 million in 2015 while the Majestic Star II was down from just over $68 million to barely over $67 million.
When looking at December totals, the Horseshoe Hammond earned $31.84 million when in 2015, they earned $36.44 million for the month. The Majestic Star I was down just a bit from the $7.31 million to $7.14 million for December while the Majestic Star II dropped from $5.41 million to $4.52 million.
The state will now look forward to seeing January’s totals once the month is complete and hopefully these numbers will be much better than what was saw in December!