By Karen Caffarini, Post-Tribune
A continuing lethargic economy coupled with Cline Avenue construction has put a dent in revenues at the four casinos along that stretch in November.
The two Majestic Star Casinos saw a 12 percent decline from November of last year to this November, Horseshoe Hammond had a 13 percent drop and Ameristar had a 15 percent slide in revenues, according to Larry Buck, senior vice president and general manager of Majestic Star. Comparatively, Blue Chip in Michigan City saw only a 1 percent drop in revenues and Harrah's in Joliet, the Cline Avenue boats' closest competitor, saw its revenues drop just 2 percent.
"I think it's a little telling that the Illinois casino closest to Cline Avenue has the lowest decline in revenues," Buck said, pointing out other Illinois casinos also experienced declines in the 14 to 16 percent range.
"My guess is it would be road construction," Buck added. "Harrah's Joliet is benefiting from our loss."
Given the numbers, Buck said he is proud that Majestic Star Casinos, which recently filed Chapter 11 reorganization bankruptcy, were down the least of the Cline Avenue casinos. He cited recent improvements and increased advertising as the reason.
Ed Feigenbaum, editor of Indiana Gaming Insight, said he was surprised to see the Indiana casinos take such a big hit in November compared to the previous month and previous year.
"Look at the 2007 numbers, and take out the racino numbers for the state, and you'll find the casinos took in about 10 percent less this November than they did in 2007," Feigenbaum said.
He said while the strong casinos continue to do well, the others continue to struggle.
In Northwest Indiana, he echoes Buck's assertion that the roadwork, which resulted in closure of portions of Cline Avenue, and the economy are the two main culprits.
According to the Indiana Gaming Commission's monthly revenue report, Ameristar took in $20.4 million last month compared to $24 million the previous November, Blue Chip raked in $13.8 million compared to $14 million, Horseshoe Hammond had revenues of $40.8 million compared to $46.9 million, Majestic Star I had revenues of $8.3 million compared to $9.8 million and Majestic Star II took in $7.2 million compared to $7.8 million.