The Post-Tribune staff report
On the heels of its Nov. 23 bankruptcy filing, Majestic Star Casino LLC released its tough third-quarter financial numbers on Wednesday.
For the three months ending on Sept. 30, consolidated net operating revenues decreased by about 9.5 percent -- $74.8 million compared to $82.7 million for the same period in 2008 -- and consolidated casino revenues saw a decline of 9.9 percent -- $75.1 million compared to 2008's $83.3 million.
Casino revenues account for 87.5 percent of consolidated gross revenues.
The company said net operating and casino revenues were negatively impacted by the economic recession and increased competition in markets, which reduced gambling activity by customers.
Majestic Star Casino owns and operates Majestic Star I and II in Gary, and two Fitzgeralds brand casinos located in Tunica, Miss., and Black Hawk, Colo.
On Nov. 23, the company filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware to restructure its debt.
Majestic Star CEO Don Barden promised that there would be not disruption in service, either for employees or customers.
Specific to Gary, Majestic Star I and II saw net operating revenues drop by 11.4 percent in the third quarter -- $48 million compared to $54.2 million for the same period in 2008.
The company blamed the decline on new and remodeled gaming facilities unveiled by competitors in 2008 and 2009, as well as the economic recession.
Casino revenues were $48 million, a decrease of $6.4 million, or 11.7 percent, compared to $54.4 million for the prior year.
Operating expenses decreased by half to $44.3 million compared to $89.8 million.