At 2, Hollywood Gaming still gambling on growth

By KALEA HALL

khall@vindy.com

AUSTINTOWN

The sounds of slots still ring through the gaming floor at Hollywood Gaming at Mahoning Valley Race Course like they did the first day the racino opened.

But since that day in September 2014, the sounds have gotten louder, and could get even louder.

“We have increased by 130 units,” said Mike Galle, general manager of the racino.

Penn National Gaming, who owns the racino off state Route 46, can add another 100 units to the gaming floor if needed.

In 2012, the Wyomissing, Pa.-based Penn National announced it would invest $250 million to build a gaming facility in Austintown with 850 video lottery terminals, or slot machines, and a one-mile thoroughbred racetrack.

Ground was broken for the racino in May 2013 and the site was soon bustling with about 1,500 construction workers.

More jobs came when Penn National started recruiting for positions inside the racino. In total, 400 people were hired, and 400 people are still employed there. In the last two years, the racino has had more than 100 promotions.

Its presence brought interest to the area from new businesses, including hotel developers. A new Hilton operated by Meander Hospitality Group is still under construction. But a Tim Hortons Cafe and Bake Shop had planned to open in the corridor, but then pulled out of the project.

“It brought a level of excitement that’s given people a place to go for fun, entertainment and dining,” said Jim Davis, Austintown Township trustee. “I don’t think property owners have experienced the growth they thought they would.”

Gaming is a big industry not only here, but across the state.

In Ohio, there are seven racinos and four casinos. In 2014, the state had the addition of three of those racinos. With the additional gaming properties came more revenue. In total, gaming revenue increased by 12.7 percent in 2015 – the first year all gaming properties were in operation for a full year, according to data from the American Gaming Association.

In 2015, the state had more than 9,000 gaming employees with wages totaling more than $350 million, the AGA reports. Total revenue in 2015 was $1.644 billion, and tax revenue was $545.38 million.

For the racinos and casinos to be successful in a competitive market, they “have to have an excellent staff, great customer service; you have to develop your customer base and loyalty,” said Alan Silver, Ohio University assistant professor of restaurant, hotel and tourism.

The staff at Hollywood Gaming, Galle says, provide a great experience and the facility has changed over time to enhance that experience.

“We have become more competitive over the last two years,” Galle said.

Skybox Sports Bar, the racino’s sit-down restaurant, has upgraded its menu. The Take 2 Grill in the food court section of the racino now has two smokers.

On the entertainment side, the racino has experimented with different acts including dueling pianos and a hypnotist scheduled for this month.

The racino also has a banquet space available for rent on its lower level with a view of the racetrack.

“Even if you don’t gamble, we have a great food and beverage outlet,” Galle said. “We offer bands on the weekends. We have live entertainment. It’s more than just gaming.”

Making the racino appeal to the customer with more than shiny slot machines, colorful carpet and a fancy facade translated to an increase in revenue at the racino.

From January to August 2015, the racino brought in $61.1 million and went from 866 slots to 870. To compare, from January to August 2016, the racino brought in $67.3 million and went from 937 slots to 980, according to figures from the Ohio Lottery Commission.

“We are very pleased with the results that we have been able to achieve there,” said Eric Schippers, senior vice for public affairs at Penn National. “We are really appreciative of the local support we have received from the beginning.”

In August alone this year, the racino brought in $8.3 million.

The racino’s revenue doesn’t just go to Penn National; it filters out into the community through its employees, vendors and others. The racino uses about 100 vendors in the area to stock the kitchens and the gift shop.

“It’s a multiplier effect,” Silver said. “It’s good for Penn National and also for the community. I think it has done well for that area.”

Because it is the racino’s host community, by the end of this year, Penn National will have given Austintown Township $2.5 million. The state will give the township another $500,000.

From 2013 to the end of 2016, the township will spend $2,550,000 on road resurfacing with those funds. Next year, the township will spend an additional $350,000 for resurfacing by using the funds.

“That’s something we would have never been able to do just because of the cost factor,” Davis said.

Davis also mentioned the donations the racino has made to community events from the township’s 9/11 Memorial to its Fourth of July celebration.

“They have been a good partner,” Davis said. “They have come into this community, and they have been active in donating.”

Racing at Hollywood Gaming kicks off Oct. 28. On Oct. 29, the racino will host the Best of Ohio races where five races will take place with each one valued at $150,000.