Overall, Northwest Indiana casino revenues dropped in November for the seventh-straight month this year on a year-to-year basis, as part of a statewide slide that is also crimping the state government's take.
The five Northwest Indiana boats raked in $86.1 million in total revenue for November, as compared to $93.7 million in November 2010, a drop of 8.2 percent. That follows an 11.4 percent slide in October revenues.
Horseshoe Casino General Manager Dan Nita laid much of the blame at the feet of the opening of new casinos, in particular Illinois' River Casino, and said it should serve as a cautionary tale for those looking to expand gaming in either state.
"I know there is a lot of discussion of adding casinos here and there, or moving licenses, but the fact is this market can't absorb more competition at this time."
Politicians pushing any type of gaming expansion should "go back and sharpen their pencils and do more due diligence," Nita said.
The consistent declines in casino revenues statewide also appear tied to consumer spending trends nationally, said Ed Feigenbaum, editor of Indiana Gaming Insight.
"People have to buy school supplies and things that are tangible products to survive," Feigenbaum said. "But they don't have to go out to restaurants, they don't have to go to the movies, they don't have to go to a casino."
Total casino admissions in Indiana slipped below 2 million people in November, marking the fifth year in a row they have decreased from the year-ago figure, Feigenbaum said.
A hit for casino operators is also a hit for the state, with Indiana feeling casino operators' pain.
Since July, riverboat wagering taxes going to the state have totaled $128 million. That's $19 million less than expected by the state's revenue forecast and $17.2 million less than the first five months of the 2011 budget year.
However, overall state revenues are beating forecasts by $117 million, mainly because of increased sales tax and income tax collections.