Craig Davison, For The News-Dispatch
MICHIGAN CITY - Blue Chip Casino owner Boyd Gaming Corp. saw a 41 percent decrease in profits in the second quarter compared with the same period in 2008.
The economy was cited by company officials as the main reason as more gamblers kept money in their wallets instead of at the slots and tables.
Casinos in the company's Midwest and South regions saw a slight decrease in net revenues during the quarter, which Paul Chakmak, executive vice president and chief operating officer, said was due to marketing and more efficient operations.
Boyd President and CEO Keith Smith said in a conference call that while the company's casinos faced difficult business conditions, "results were in line with our expectations."
The opening of the hotel at Blue Chip increased business levels, but also raised operating costs, said David Strow, director of corporate communications.
He said this is typical when opening a new property, and the company will look to reduce costs and increase efficiency.
A look at data from the Indiana Gaming Commission shows Blue Chip had higher attendance and more taxes paid to the state during the second quarter of this year, but those who went spent less money on gambling.
The casino had to pay the state more than $29 per visitor in wagering tax during the second quarter in 2008 and paid more than $24 per visitor in the same period in 2009.
Boyd, based in Las Vegas, earned $12.8 million for the three months ending June 30, compared with $21.7 million in the same period a year ago.
Smith said business trends continue to stabilize in each of its regions.
"We believe we have reached the low point in the economic cycle and that the precipitous declines that began in the second half of 2008 are behind us," Smith said.
Copyright © 2024 The News Dispatch