Four Winds casino bit into the third-quarter performance by Blue Chip casino parent Boyd Gaming Corp. company officials said.
The opening of a new competitor in the Northwest Indiana market contributed to a decline in revenue, Boyd Gaming Corp. President Keith Smith said.
Strong results from Boyd Gaming Corp.'s Las Vegas casinos boosted overall quarterly profit for the company, and shares surged in afternoon trading.
Boyd share rose as high as $42.59 before settling at $41.40, up 6 percent, on the New York Stock Exchange.
The company reported a profit of $31.8 million, or 36 cents a share, compared with a loss of $12.9 million, or 15 cents a share, in the previous year.
Income from continuing operations rose to $31.9 million, or 36 cents per share, from $28.1 million, or 32 cents per share.
Quarterly revenue fell to $490.1 million, down 8 percent from $530.7 million in the same quarter last year.
Four Winds Casino Resort opened in August in New Buffalo, Mich., to become the first land-based, and only tribal, casino in the Northwest Indiana market.
Revenue in Boyd Gaming Corp.'s South and Midwest region, which includes Blue Chip, fell by 6 percent compared to the third quarter a year ago, the company reported.
A $130 million hotel and convention center under construction at the Blue Chip site in Michigan City is expected to put the property back on an even keel, company officials said.
The hotel, slated to open late next year, "will add a new dimension and expand our reach," in the market, Smith said.
A recently initiated shuttle bus service to Four Winds from stops in Chicago is unlikely to affect Blue Chip, Smith said.
"We don't do a lot of busing. I don't expect a big impact," Smith said. Casinos closer to Chicago would likely be more affected, he said.
The Associated Press contributed to this story.
© Copyright 2024, nwitimes.com, Munster, IN