Racino revenue up year over year

By Kalea Hall | January 10, 2017 at 12:05a.m.

Hollywood Gaming saw increase of $7M

AUSTINTOWN

Ohio’s racinos appear to be taking some customers away from the casinos.

Revenue from the state’s four casinos went from $812,320,350 in 2015 to $797,942,734 in 2016, according to the Ohio Casino Control Commission.

Meanwhile, the state’s seven racinos reported total video lottery terminal revenue of $893,501,865 in 2016 compared with $831,362,399, according to numbers from the Ohio Lottery Commission.

Alan Silver, gaming industry analyst, faculty at Ohio University and an economic consultant for Nathan Associates, says having the racinos close to the suburban gamblers with entertainment and free parking is a main reason why the casinos took a hit.

“The racinos have become convenient,” Silver said.

Also, the rebranding of two Horseshoe casinos in Cleveland and Cincinnati to “Jack” casinos last year did not help revenues.

“The Jack name hasn’t taken off like the Horseshoe brand,” Silver said.

But the gaming revenue reports released by the state agencies don’t show all of the funds the casinos and racinos bring in.

“We are not reporting with the figures the food and beverage and revenue,” he said. “Gaming [revenue] is a small part of the equation.”

Austintown’s Hollywood Gaming at Mahoning Valley Race Course saw a year-over-year increase in 2016 video lottery terminal revenue from $92.1 million in 2015 to $99.8 million in 2016.

For just the month of December, the racino brought in more than $8 million in video lottery terminal revenue in December 2016, up from December 2015’s revenue of $7.79 million.

In December 2016 the racino had an average of 982 video lottery terminals, or slot machines, operating daily compared with 939 in December 2015, according to figures released Monday by the Ohio Lottery Commission.

“While we don’t comment on monthly revenue announcements, we continue to be pleased with our operations at Hollywood Gaming at Mahoning Valley Race Course,” said Eric Schippers, senior vice president of public affairs for Penn National Gaming Inc., the Austintown racino’s parent company.

Overall, Silver believes the state’s gambling industry is doing well, but Ohio needs to look at options in skill-based games as another option for gamblers instead of the chance games.

“The real buzz word now is how we get the next generation of gamblers to gamble,” he said.