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State’s racinos grow, casinos are stagnant
By Kalea Hall
AUSTINTOWN
In one analyst’s opinion, the state’s seven racinos know what they are doing – and doing it well.
“They have really done a tremendous job,” said industry expert Alan Silver, an assistant professor at Ohio University.
The total video lottery terminal, or VLT, revenue from all seven racinos was $868,914,542 for fiscal year 2016, or July 2015 through June 2016, according to the Ohio Lottery Commission.
June 2016 revenues for all racinos were released Friday by the OLC.
Penn National Inc.’s Hollywood Gaming at Mahoning Valley Race Course contributed revenue of $97,469,256 for fiscal year 2016. This is the first full fiscal year of data recorded for Hollywood Gaming by the OLC. The racino opened in September 2014 with 850 VLTs and a one-mile thoroughbred racetrack. From September 2014 through June 2015, the local racino’s VLT revenue was $73,593,722.
In fiscal year 2015, from July 2014 through June 2015, combined VLT revenue across the state was $772,956,258. It’s important to note, however, that revenue from Hollywood Gaming at Mahoning Valley Race Course was not added until it opened, and Hollywood Dayton Raceway was not added until it opened in August 2014.
For just June, the state’s racinos posted revenue of $70,660,301 with an average of 10,793 VLTs compared with revenue of $67,423,977 with an average of 10,468 VLTs reported in June 2015.
Hollywood Gaming’s June revenue was $7,633,097 with an average of 932 VLTs compared with $7,640,090 with an average of 866 VLTs generated in June 2015.
“I wouldn’t be too worried about this month,” Silver said.
Certain factors such as the weather and people heading out for vacation could have contributed to the slight drop, he said.
Penn National does not comment on revenues at its individual properties.
“Racinos and VLT revenue have shown consistent strong revenue, and the casinos have been stagnant going month to month,” Silver said.
The state’s four casinos reported June 2016 revenue of $62,917,924 compared with revenue of $63,494,297 generated in June 2015, according to the Ohio Casino Control Commission. The commission’s data are reported January through December.
Silver believes the growth mode at racinos is a factor of convenience for people. Many drive to the suburban racino instead of heading to the big-city casino.
“They develop loyal customers,” he said. “A lot of the racinos have done a good job with concerts, entertainment and dining hall.”
Also, racinos have the upside of looking to revenue from VLTs, which is more consistent than table-game revenue.
“Overall, the industry is strong,” Silver said.
The economic impact is in the jobs the racinos and casinos supply both directly and indirectly.
They also bring in tourists to spend money here, Silver noted.
“That’s an added boost to the economy,” he said.