Casino revenues down over past six months

DES MOINES – Iowa's bitter cold and snowy December has had a chilling effect on a gambling industry already weathering a down year.

State records indicate adjusted gross revenues at Iowa's state-licensed racetracks and riverboat casinos plunged nearly $4.8 million last month compared to December 2008.

That was a significant share of the roughly $12 million decline in gambling profits that has occurred at the three state-regulated racetrack-casinos and 14 riverboats during the first half of fiscal 2010, according to state Racing and Gaming Commission documents.

“It shows we're certainly not recession proof,” said Wes Ehrecke of the Iowa Gaming Association, an umbrella group representing the state's 17 commercial gambling facilities – excluding those operated by Indian tribes. “I think we're reflecting what's going on in the economy right now.”

So far this fiscal year, revenues at Iowa's pari-mutuel tracks in Altoona, Council Bluffs and Dubuque are off by more than 7 percent. Profits at Iowa riverboats are down over 3 percent but commission administrator Jack Ketterer said the numbers were skewed by the fact that the Dubuque Diamond Jo enjoyed a revenue surge after a significant upgrade to that facility.

“I think we felt the recession and the economic crunch a little more than we saw in the previous year,” said Ketterer, who noted that gambling revenues showed weakness in the waning months of fiscal 2009 and the trend has carried into fiscal 2010.

Ketterer said Iowa's casinos have not experienced the double-digit declines reported at other U.S. gambling venues and there is hope the economy will begin to pick up this year. “A little sunshine and warm weather wouldn't hurt,” he added.

The wagering slump comes at a time when the Racing and Gaming Commission will begin reviewing applications from groups in four counties seeking to receive a state license to operate a gambling facility. Financing and the potential impact on Iowa's existing gambling market will be key factors during the commission's review.

The new applications come from Lyons, Tama, Wapello and Webster counties. Voters in Franklin County also approved a gambling referendum but no application was submitted to the state's gaming regulatory panel.

Ketterer said each applicant will be asked to make a presentation to the commission on March 23. Commissioners plan tours at the proposed facility locations in Tama, Wapello and Webster counties on April 7 and Lyons County on April 15.

The state panel will conduct a public hearing on May 4 and make a decision whether to grant any new licenses on May 13, he said.

Adjusted gross revenues from July 1 through Dec. 31

State-licensed casino                             Fiscal 2009           Fiscal 2010

TRACKS

Prairie Meadows/Altoona                      $95,244,085          $91556,575

Horseshoe-Bluffs Run/Council Bluffs    $96,288,257         $89,287,067

Dubuque Greyhound Park & Casino      $37,925,220         $31,623,891

Track subtotal                                     $229,457,562       $212,467,533

RIVERBOATS

Isle of Capri/Marquette                          $16,165,441         $14,967,483

Diamond Jo/Dubuque                            $22,527,954         $33,862,437

Wild Rose-Clinton   me                         $21,802,194         $19,209,728

Catfish Bend/Burlington                        $19,070,221         $18,887,394

Argosy/Sioux City                                 $27,823,719         $27,998,848

Terrible's Lakeside Casino/Osceola        $25,217,785        $24,471,582

Wild Rose Casino/Emmetsburg              $13,375,574        $13,941,719

Isle Casino & Hotel/Waterloo                 $39,518,961        $38,849,107

Rhythm City Casino/Davenport              $29,247,633        $27,228,408

Isle of Capri/Bettendorf                          $45,273,789        $39,133,963

Ameristar II/Council Bluffs                    $85,015,942        $75,950,751

Harrah's Council Bluffs Casino              $47,053,354        $42,510,783

Diamond Jo Worth/Northwood              $39,332,743        $39,657,502

Riverside Casino & Golf Resort             $42,604,633        $42,277,274

Overall total                                         $683,487,405      $671,414,512

Source: Iowa State Racing & Gaming Commission