By Karen Caffarini, Post-Tribune correspondent
With their monthly revenues continuing to stagnate or drop, one gaming analyst suggests it may be time for Ameristar and Majestic Star owners to consider what kind, if any, of investment they plan to make at the two area casinos.
"I don't know for how long the Indiana Gaming Commission will let Majestic Star I and II muddle along as they have been doing," Ed Feigenbaum, executive director of Indiana Gaming Insight, said Monday while discussing June's monthly revenue report.
Feigenbaum pointed out that Majestic Star's owner, Donald Barden, just opened a new casino in Pittsburgh that he put no money into, but will be getting money out of.
Whether he will use some of that new cash to bolster his two Gary casinos is the question, he said.
Ameristar in East Chicago has been experiencing falling revenues and turnstile counts since competitor Horseshoe Hammond opened its new, expanded casino last August. Feigenbaum said while Ameristar should consider investing in the East Chicago location, it might want to wait as the legislature is in the process of discussing possible land-based casinos.
"If the legislature does that, it would provide Ameristar a real leg up on Horseshoe, which built under the old rules," Feigenbaum said.
A bill that would have moved one of the Gary casinos to a land-based area near Interstate 65 died in the state General Assembly.
Last month, Ameristar raked in $22.4 million in total revenues, compared to $28.7 million the previous July. Majestic Star I took in $9.7 million compared to $12.1 million the previous July, and Majestic Star II took in $8.4 million compared to $9.4 million.
Horseshoe shot up to $44.7 million last month, compared to $27 million the year before, but Feigenbaum pointed out that the casino was down about a week last July as it prepared to open its new venue.
Blue Chip in Michigan City remained about the same, with $17.2 million last month compared to $16.1 million the previous July.
Feigenbaum said the sluggish economy is still taking its toll on most casinos in Indiana, although a new report by the Nelson A. Rockefeller Institute of Government at the State University of New York showed Indiana as one of the few states with casinos that have not seen a drop in gaming revenue.
"Indiana is one of five or six states whose casino revenues went up because we had two new racinos and improvements at Horseshoe Hammond and Blue Chip in Michigan City. If not for those, we're pretty much in the same boat as the other states, Feigenbaum said.
He said the racinos took in a combined $25 million to $35 million. Without that money, he said Indiana would be looking at a drop in revenues as well.