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Hollywood Gaming's first financial report shows high numbers
By ROBERT CONNELLY
AUSTINTOWN
The Ohio Lottery Commission reported that $52.8 million credits were played at Hollywood Gaming at Mahoning Valley Race Course over its first 14 days of operation.
After credits of $46.8 million won by gamers — an 88.77 percent payout — that equated to a win per day per video lottery terminal of $499.
A good month is considered to be $300 per machine per day in VLT revenue, Penn National Gaming officials have said.
Distribution of net winnings had $3.9 million going to the racino, $1.9 million to the lottery commission and $19,739 to problem gambling services.
Those numbers are based on the first 14 days and the VIP night Sept. 15 that Hollywood Gaming at Mahoning Valley Race Course has been open with its 850 VLTs. The facility opened Sept. 17.
Bob Tenenbaum, spokesman for Penn National, said his company’s corporate policy says “we don’t comment on the monthly revenue numbers.”
He did talk about crowd numbers and the facility.
“Obviously it’s only been three weeks, [but] we’re still very pleased at the response from people in the community to the facility. ... We’re certainly hopeful we can sustain that momentum.
“Any new facility always sees in its first few weeks and months curiosity seekers who just want to take a look.”
Overall, VLT numbers in the state were up for the third straight month, while VLT win per day dropped to $206 from $215 in August. The state had a payout percent of 91.13 percent, down from 91.36 percent in July and 91.34 percent in August.
Overall, the state’s racinos went from a net win of $57.5 million in August to $60.6 million in September.
Meanwhile, Hollywood Gaming at Dayton Raceway opened weeks ahead of Austintown on Aug. 28. Its first month’s numbers, albeit for four days, featured a win per VLT per day of $466. That dropped to $207 for its first full month of operation with a 91.66 percent payout and $66.3 million credits won out of $74.3 million played.
Dayton is in a market with three similar facilities — a casino and racino in Cincinnati and a racino in Lebanon, however.
For Hollywood Gaming in Austintown, the competition is at a distance, with the closest casinos and racinos in Pittsburgh, Cleveland and West Chester, W.Va.
“There’s the newness factor when a new casino or racino opens, so players will travel further miles to see if they really like it,” said Alan Silver, Ohio University assistant professor of restaurant, hotel and tourism and a casino expert. He also said now it’s up to Hollywood Gaming to get “those players to come back and build loyalty so once they get them in the racino, they’re going to get them to sign up for a player’s card.”
Danielle Frizzi-Babb, an Ohio Lottery Commission spokeswoman, said in an email, “Hollywood Gaming at Mahoning Valley came out strong at its grand opening and first two weeks in business, and we’re very pleased with the racino’s performance.”
“Loyalty is what makes or breaks the property,” Silver said.
Across the state, gaming took a step back this month, especially at the four casinos. According to the monthly report from the Ohio Casino Control Commission, adjusted gross income, or money taken in from slots and table games at the casinos in Ohio, fell at all four facilities — Horseshoe Cincinnati went from $16.3 million in August to $16.2 million in September; Horseshoe Cleveland went from $20.5 million in August to $16.8 million in September; Hollywood Columbus went from $18 million in August to $15.8 million last month; and Hollywood Toledo fell from $15.9 million in August to $14.5 million in September.
“As we add more gaming throughout the state of Ohio, players have more choices and it’s more spread around. ... [It’s] spreading it thin,” Silver said.
The Ohio Lottery and Ohio Casino Control commissions release monthly numbers on the seventh of every month.