Iowa gaming industry posts flat revenue year

DES MOINES – State-licensed casinos in Iowa appear to be weathering tough economic challenges, but the $1.412 billion in adjusted gross revenue posted in fiscal 2009 marked the industry's first overall down year.

Figures issued Thursday by the state Racing and Gaming Commission indicate Iowa's three state-licensed racetrack-casinos and 14 riverboats took in about $2.56 million less than the record revenue of $1,415,377,851 for fiscal 2008.

“We're pretty close to even,” said commission administrator Jack Ketterer. “It was down a fraction of a percent.”

Overall, eight facilities posted year-to-year revenue increases, while nine gambling enterprises saw their adjusted gross revenue dip during a year in which Iowans' discretionary entertainment dollars were buffeted by weather disasters and recession.

“The fact that we are remaining flat in a challenging economic time is reflective that people are tightening their belts, as they should be, but that they still value the premiere entertainment destinations in Iowa,” said Wes Ehrecke of the Iowa Gaming Association.

Ehrecke said U.S. gambling centers like Las Vegas and Atlantic City are struggling due to the national economic downturn, but Iowa casinos appear to be benefitting from people choosing “stay-cations” or “near vacations” with visits to regional casinos.

Iowa casinos continue to be a major tourism draw with about 65 percent of patrons coming from outside the state, he noted. But still, fiscal 2009 admissions were down about 243,500 at Iowa's three racetracks and 536,060 at the 14 riverboats.

The largest revenue gains occurred at the Diamond Jo casino in Dubuque and the Wild Rose casino in Clinton – two facilities that switched from riverboat operations to new landed casinos.

“The ones that have reinvested in their facilities have usually been the ones that have seen continued growth,” said Ketterer.

Without the gains provided by those two facility improvements, the industry's overall revenue total would have been down about 2.5 percent for fiscal 2009, Ketterer said.

The new fiscal revenue numbers likely will be closely scrutinized by commission members who meet next week to discuss whether to open a new round of license applications for communities where voters have approved gaming referenda.

Officials in Fort Dodge, Ottumwa, and Franklin, Tama and Lyon counties have expressed interest in joining the 17 state-regulated casinos and three American Indian casinos that employ more than 10,000 people in Iowa.

Studies by two state-paid consultants released last spring said Lyon County in northwest Iowa, where a casino would draw customers from South Dakota, has the best potential. Fort Dodge ranked second.

Adjusted gross revenue for state-licensed racetrack-casinos and riverboats

Fiscal Year   Tracks                   Riverboats              Total

2009             $452,614,880    $960,202,364      $1,412,817,244

2008              462,973,626     952,404,225             1,415,377,851

2007              459,887,597     860,076,528            1,319,964,125

2006              389,856,515     759,202,989             1,149,059,504

2005              350,438,945     745,998,062            1,096,437,007

2004              336,005,373     715,510,336            1,051,515,709

2003              314,897,769     665,092,334              979,990,103

2002              314,731,866     645,226,917               959,958,783

2001              297,960,875     589,034,843              886,995,718

2000              301,026,191     577,941,125               878,967,316

1999              281,409,515     513,475,523                794,885,038

1998              259,774,559     468,631,713               728,406,272

1997              253,736,866     419,459,349               673,196,235

1996              271,747,642     318,475,053               590,222,695

Source: Iowa State Racing and Gaming Commission

TRACKS                                                 Fiscal 2009            Fiscal 2008

Adjusted gross income                   $452,614,880         $462,973,626

Admissions                                                 6,500,095                 6,743,593

Win per capita                                                         $70                              $69

Prairie Meadows Racetrack & Casino/Altoona

Adjusted gross income                   $193,051,347          $192,942,938

Admissions                                                 2,502,560                  2,490,044

Win per capita                                                        $77                               $77

Horseshoe Casino/Bluffs Run Greyhound Park/Council Bluffs

Adjusted gross income                    $191,063,517         $198,410,252

Admissions                                          2,558,403               2,735,731

Win per capita                                               $75                        $73

Dubuque Greyhound Park & Casino

Adjusted gross income                       $ 68,500,016        $ 71,620,436

Admissions                                            1,421,132             1,517,818

Win per capita                                                 $70                      $47

RIVERBOATS

Adjusted gross income                      $960,202,364       $952,404,225

Admissions                                          16,455,523           16,991,583

Win per capita                                                 $58                     $56

Isle of Capri/Marquette

Adjusted gross income                        $31,501,019       $ 34,327,956

Admissions                                               393,277               428,745

Win per capita                                                 $80                     $80

Diamond Jo/Dubuque

Adjusted gross income                        $59,199,201      $ 40,375,188

Admissions                                             1,070,399             708,290

Win per capita                                                  $55                   $57

Mississippi Belle II/Wild Rose-Clinton

Adjusted gross income                         $41,857,513     $ 27,777,051

Admissions                                                855,108            413,966

Win per capita                                                  $49                  $67

Catfish Bend/Burlington

Adjusted gross income                         $38,892,667    $ 39,290,774

Admissions                                                788,556         1,035,443

Win per capita                                                  $49                  $38

Argosy/Sioux City

Adjusted gross income                         $56,654,597    $ 57,537,914

Admissions                                             1,092,340         1,123,261

Win per capita                                                  $52                  $51

Terrible's Lakeside Casino/Osceola

Adjusted gross income                         $51,242,788    $ 55,434,999

Admissions                                                847,516           991,055

Win per capita                                                  $60                 $56

Wild Rose Casino & Resorts/Emmetsburg

Adjusted gross income                      $27,679,626       $ 27,488,959

Admissions                                             549,664              593,602

Win per capita                                               $52                    $46

Isle Casino & Hotel/Waterloo

Adjusted gross income                      $79,835,092      $ 76,577,583

Admissions                                          1,535,587           1,777,746

Win per capita                                              $52                     $43

Rhythm City Casino/Davenport

Adjusted gross income                       $58,184,310     $ 56,663,557

Admissions                                              960,818            947,373

Win per capita                                                $61                   $60

Isle of Capri/Bettendorf

Adjusted gross income                        $88,975,450    $ 96,563,711

Admissions                                            1,253,361         1,451,452

Win per capita                                                 $71                  $67

Ameristar II/Council Bluffs

Adjusted gross income                      $167,009,199    $178,899,018

Admissions                                            2,359,895          2,677,638

Win per capita                                                 $71                   $67

Harrah's Council Bluffs Casino & Hotel

Adjusted gross income                        $93,835,759    $ 96,977,116

Admissions                                            1,464,206         1,560,194

Win per capita                                                 $64                  $62

Diamond Jo Worth/Northwood

Adjusted gross income                        $78,877,992    $ 78,348,413

Admissions                                            1,255,422         1,319,178

Win per capita                                                 $63                  $59

Riverside Casino & Golf Resort

Adjusted gross income                        $86,457,151    $ 86,141,986

Admissions                                            2,029,374         1,963,640

Win per capita                                                 $43                  $44

Source: Iowa State Racing & Gaming Commission