Northwest Indiana casino revenues in June were down $1.25 million from a year ago, a sign the recession blues are starting to catch up with the gaming boats.
The monthly revenue report from the Indiana Gaming Commission shows Northwest Indiana casinos had total revenues of $93.79 million in June, as compared to $95.04 million one year ago.
The two casinos that invested most heavily in improvements in the past year, Horseshoe in Hammond and Blue Chip in Michigan City, still logged year-over-year increases. But their good fortune was not enough to offset sharp declines in revenue at the other three casinos.
Casinos generally expect some slowdown from May to June, but they still want to see improvement in revenues as compared to the year-ago period, said Ed Feigenbaum, editor of Indiana Gaming Insight.
But an unemployment rate hovering around 10 percent in Indiana and Illinois, which surpassing the rate in Michigan, made that a difficult task this year.
"You are looking at a situation where people are not deciding between entertainment options; they are deciding between putting food on the table and paying the mortgage," Feigenbaum said.
Majestic Star I casino revenues plunged to $8.67 million in June, an almost 21 percent drop from last year's June take. Ameristar revenues dropped to $21.88 million, a more than 14 percent drop from one year ago. Majestic Star II revenues were down 7.9 percent.
Wall Street analysts are hearing from casino general managers that there is a general softness in the casino market throughout the Midwest, Feigenbaum said. Each casino now has to concentrate on what they do best to succeed, he said.
"People have kicked the tires at Horseshoe and checked out the hotel and spa at Michigan City," Feigenbaum said. "Now everyone (casinos) needs to concentrate on what they can bring to the table."
Blue Chip's new 300-room hotel tower overlooking Lake Michigan opened earlier this year and the casino has cashed in on steady revenue increases ever since.
Horseshoe's new $480 million gaming barge, which opened last August, is apparently also a winner. It has been hauling in the largest revenue increases of any Northwest Indiana casino this year.
Although Horseshoe, with a $39.85 million haul in June, registered the largest year-over-year increase in revenue of any Northwest Indiana casino at 13.5 percent, that was still smaller than the 17 percent year-over-year increase it logged in May.
Overall revenues at the five casinos dropped 15 percent in June as compared to May, with the expected summer slowdown impacting revenues at all five boats.