Video gambling terminals in bars and other outlets in Illinois are continuing to chip away at casino revenues in Northwest Indiana, observers say.
The area’s five casinos saw an approximate 8 percent decline in year-over-year monthly revenues in November. The casinos took in $78.24 million in total revenues in November, compared to $84.33 in November 2013, according to the Indiana Gaming Commission monthly revenues report issued Tuesday.
Casino revenues in the broader Chicagoland area, including Illinois, were down 5 percent since last November, according to Dan Nita, senior vice president and general manager of Horseshoe Hammond.
“There is continued pressure from these machines in Illinois. A few months ago there were 15,000 of the machines in the state. Now the number is up to 19,000 in just 90 days,” Nita said.
“They took in $370 million in revenue in the last 12 months. That’s equivalent to Majestic Star casinos and Ameristar combined,” Nita said.
He said the machines sound identical to the casinos’ slot machines but have a maximum payout of just $500.
The terminals were intended to be used to help bolster revenues at struggling bars and fraternal organizations but have since found their way into all types of businesses, including a scuba shop, and according to a recent headline, even into a low-income retirement facility run by the Village of Dolton.
On the bright side, Nita said the weather is much improved over last December so far.
“I expect the year-over-year results for this month will be improved,” he said.
Ameristar Casino in East Chicago was the only one of the five in Northwest Indiana to report an increase in revenues in November, taking in $19.78 million compared to $17.42 million in November 2013.
Blue Chip Casino in Michigan City raked in $11.71 million last month compared to $12.52 million the previous November, Horseshoe Hammond took in $34.62 million compared to $40.75 million and Majestic Star Casinos took in $12.13 million compared to $13.64 million.