All five casinos in Northwest Indiana saw a drop in revenues in May, a month that typically has little volatility, according to gaming analyst Ed Feigenbaum.
“I can’t explain why Northwest Indiana casino numbers are down compared to a year ago,” Feigenbaum, editor of Indiana Gaming Insight, said Wednesday after the release of the monthly casino revenue numbers by the Indiana Gaming Commission.
Nor could Dan Nita, senior vice president and general manager of Horseshoe Hammond Casino.
“It’s hard to determine how much was macroeconomics. We’re definitely off our high mark. Unfortunately, there are no solid answers,” Nita said.
He added: “It’s a bit disappointing. Our marketing is in place and it’s been pretty consistent. We’ll go back and figure out what kept guests away in May.”
Nita said the dive came from the slot side of the business, while table
games at Horseshoe showed some strengths.
He said until last month’s drop, the casinos were showing some optimism coming out of the winter months. While revenues were modest, he said they still beat the same month the previous year.
Feigenbaum said flooding of the Ohio River resulted in depressed numbers for some casinos in the state, but that wouldn’t affect this region. He added that revenues usually go up at least a little in May.
Ameristar Casino in East Chicago took in $20.5 million last month, compared with $22.2 million in May 2010, Blue Chip Casino in Michigan went from $14.9 million last May to $14.7 million last month, and Majestic Star’s two casinos took in a total of $18.2 million last month compared with $21.1 million last May.
Horseshoe came down from a particularly good month in May 2010, one of a few in which it cracked the $50 million mark with $50.8 million, taking in $46.2 million last month.
Concerning the growing likelihood that Illinois will add more casinos and racinos — including a casino in Chicago and one in the south suburbs — Nita said the situation is so fluid right now and there are so many possible scenarios it is difficult to comment on how it would affect Horseshoe.
Gaming analysts have said a casino in the south suburbs, possibly Ford Heights, would hurt Horseshoe more than a Chicago casino. But Nita said it would all predicate on the casino’s offerings, such as the quality of its restaurants, and whether it has a hotel or entertainment venue.
He did say, however, that Caesars Entertainment Corp., its parent company, probably wouldn’t bid on one of the Illinois licenses.
“Our company is very happy with the two offerings we have,” he said.