New casinos helped buoy overall gaming revenues in Iowa

DES MOINES - Casino operations that moved from riverboats to shiny new casinos were the big winners in last year's gaming market and helped lessen the overall impact of losses in other areas of the market.

Overall, revenues for Iowa's 17 state-licensed racetracks and casinos were down slightly for fiscal year 2009, which ended on June 30. Total revenues dipped about $2.56 million to $1.412 billion for the year.

But the Wild Rose Casino & Resort in Clinton and the Diamond Jo in Dubuque bucked that trend, drawing gamblers and dollars to their new, upgraded facilities.

Revenues at the Clinton casino totaled $41.8 million for the year, up from $27.7 million the previous year.

Their operations moved from a riverboat to a land-based facility that opened in June 2008. At the new site, they added close to 150 slot machines, a 60-room hotel, ballroom for events, two restaurants and more parking than the riverfront site.

"It's been very successful for us, and of course, parking doesn't hurt either," said General Manager Tim Bollmann.

At the riverfront site, they had roughly 175 parking spots near the facility, and a shuttle brought other visitors from a nearby park.

Now casino operators have more than 1,000 spaces outside their front door.

Having new space for entertainment, such as country acts Roy Clark and the Gatlin Brothers, also helped.

"We're able to draw people from Illinois and beyond to come and see what we've had, which was very difficult at the riverboat," Bollmann said.

Officials were pleased with the revenue figures in fiscal year 2009, Bollmann said, but are "cautiously guarded" about the future.

"That's what we're going to be looking at moving forward is how do we continue to grow," Bollmann said.

The other big success story last year was the Diamond Jo in Dubuque, which posted nearly $59.2 in revenues, up from $40.3 million the previous year. Diamond Jo opened its new facility in December, according to Jack Ketterer, administrator for the Iowa Racing and Gaming Commission.

Dubuque Greyhound Park & Casino also improved their casino and added restaurants, Ketterer said.

It appears both of those operations have expanded the Dubuque market to close to $130 million, Ketterer said, compared to less than $100 million in years past.

"I think they're drawing from a significantly wider market, stretching into Illinois and Wisconsin," Ketterer said.

Without the gains from the Clinton and Diamond Jo Dubuque casinos, revenues overall would be about 2.5 percent below the previous fiscal year, Ketterer said.

Iowa fared better than other major gaming markets such as Nevada and Atlantic City, Ketterer said, a sentiment that was echoed by consultants earlier this year. Casinos also benefited from people taking trips closer to home in the down economy, Ketterer said.

"Overall, I think we're pretty fortunate from a state standpoint and a revenue standpoint that we've held our own," Ketterer said.

Ketterer said it seems that economic downturns take longer to get to the Midwest and Iowa than on the coasts.

The three state-licensed casinos in Council Bluffs all took revenue hits last year compared to the previous year, dropping roughly $22 million. Ketterer attributed the drop in part to financial problems for Harrah's Entertainment, which owns and operates two casinos in Council Bluffs.

In a written statement, the company addressed the revenue drop at its locations.

"Harrah's and Horseshoe Council Bluffs Casinos have experienced declines in these economic conditions, but are optimistic about the future and remain committed to both our employees and community," the statement said.

Ketterer said it's also possible the Omaha/Council Bluffs area is seeing more of the effects of the economic downturn than other smaller gaming markets in Iowa.