The Indiana casino industry set a few records statewide last month, none positive, and the final two months of the year aren’t expected to show any marked improvements, a gaming analyst said Wednesday.
This year has already set a record for the most months of year-over-year revenue declines at eight, eclipsing last year’s record seven months, and there are still two months to go, Ed Feigenbaum, editor of Indiana Gaming Insight, said Wednesday following the release of October’s casino revenues by the Indiana Gaming Commission.
Furthermore, Feigenbaum said, last month was the worst October in terms of revenue since 2007 and the first time since 2007 that October’s total revenues were below those in September.
“We need to keep a real close eye on November and December. We’re headed into the holiday season and forecasts for spending are not that great this season,” Feigenbaum said.
He noted that there are a number of discount stores offering layaway this year, a program that pretty much disappeared with the advent of the credit card.
“There is obviously a lot of concern on the part of retailers that consumers don’t have a lot of money to spend and that they are not willing to spend it all at one time at one place. That doesn’t bode well for casinos,” Feigenbaum said.
Richard Feinberg, a Purdue University Lafayette professor of consumer science and retailing, said retailers’ growing use of layaway reflects the tough time many are facing as it allows consumers to put merchandise on hold and pay for it in installments until right before it’s needed.
Dan Nita, senior vice president and general manager of Horseshoe Hammond Casino, said his expectations for November and December are comparable to those for the last two months.
“There is nothing in sight to make people’s gambling budgets increase or decrease,” Nita said.
Nita said in Northwest Indiana, the four casinos saw both table and slot revenues drop. The entire Chicago market, which includes nine casinos in Illinois and Northwest Indiana, grew 2 percent from September to October, going from $177 million to $180 million. Year-over-year, Nita said the Chicago market grew 4 percent from October 2010. However, if you take out the new Rivers Casino in DesPlaines, Ill., the market had a double-digit drop.
On the positive side, Nita said the casino recently concluded its World Series of Poker event, which had the biggest turnout in the event’s history, and Horseshoe is making a big push in penny slots, which he said is the most popular sector in the industry now.
According to the gaming commission, Ameristar in East Chicago took in $19.9 million in revenues in October compared to $20.8 million in October 2010 and $19.1 million in September. Blue Chip Casino in Michigan City raked in $14.2 million last month compared to $15 million in October 2010 and $14.4 million in September. Horseshoe Hammond brought in $40.2 million in revenues last month, compared to $47.1 million the previous October and $39.7 million in September; and the two Majestic Star Casinos combined took in $15.8 million last month, compared to $18.1 million the previous October and $15.7 million in September.