BestCraps.com

Iowa casino revenues drop after 17 years

Posted on July 15th, 2010

News Sponsored by Online Vegas Casino

Rated 5 Stars by BestCraps.com

Read Review

Visit Casino

Download Software

————————————————

For the first time since 1993,a period that spans 17 years, Iowa casinos reportedly dropped annual revenues by 3.5%, according to the fiscal year ending report last June 30.The recession is said to be the culprit in the decline. Iowa’s state-regulated casinos have reported revenues if $1.36 billion last fiscal year which dipped from the previous year’s revenues of $1.41 billion.

This is according to the Iowa Racing and Gaming Commission. Greg Seyfer of Cedar Rapids, chairman of the commission said “This is just a sign that the economy has been taking its toll and that we may be hitting the point of saturation” pertaining to Iowa’s casino industry. He also explained that this was the reason why the commission decided to decline 3 nout of 4 applications for new casino projects.

The current state of recession not only had impacts on the economy but on local employment as well. Iowa casinos had to let go some of the people who work for them; currently casinos employ 9,500 workers, which is less than the 10,000 employees casinos have before the recession started two years ago. “It’s no surprise that people are tightening their belts with their discretionary dollars earmarked for entertainment, and rightfully so,” Said Iowa Gaming Association president Wes Ehrecke. The snowstorms that hit the state last year also did not help to encourage people to drive in to the casinos.

Casinos all over the country are in constant battle with the effect of the recession. American Gaming Association spokeswoman Holly Wetzel said that 2009 revenues from casinos were down for a little bit more than 5.5% all over the country. Iowa is still a little bit more lucky than other states that are experiencing a much worse decline in casino revenues. Nevada and New Jersey are places that were hit more severely by the recession. “We are just like any of the other consumer-driven industries,” Wetzel explains. She said further that unless the economy improves and employment opportunities begin to open again, “the gaming industry is going to continue to struggle” While majority of casinos are experiencing a downward trend, Altoona’s Prairie Meadows Racetrack and Casino is able to earn the highest earning casino in the past 12 months, reporting $186.6 million, outnumbering Horseshoe Casino Council Bluffs who reported revenues of $186 million. Prairie may be highest earning last year, however its revenues are still down by 3% from the same time a year ago. Prairie was also able to maintain its admission at 2.5 million which was constant from the past years.

Prairie Meadows’ chief executive officer, Gary Palmer said”We are still getting a lot of people out here, although this probably won’t be a record year”. Despite the crisis, the racetrack-casino is still in very good financial shape said Palmer. “With the economy the way it is, we feel this entertainment center has held its own pretty darn well.” He also said the casino will be able to contribute at the very least, $37 million going to charitable institutions and community improvement purposes this year. Prairie Meadows is being run by a non profit board and is owned by Polk County. Among all Iowa casinos, the biggest gainer in terms of revenue is said to be the Diamond Jo Casino in Dubuque. Its revenues were reportedly $68.4 million over the last 12months, an increrase of about 15.5 percent. The biggest loser on the other hand is the Isle of Capri casino in Bettendorf, which revenues were down of about 12%posted at only $78.3 million.

The recession is rendering little to no effect for the plans on the construction of the $120million Lyon County Casino and Golf resort. The grand casino is said to be located near the South Dakota border.”We are breaking ground and moving forward,” said casino spokeswoman Sharon Haselhoff. Since contractors are facing major competition, the bids for the initial construction have been lower than expected. The scheduled opening of the casino will be on July 1, 2011.

The Wild Rose Casino in Clinton reported a $39.2 million revenues for the past 12 months. This figure is still down by 6.5 percent. The casino is currently benefiting from Iowa laws that allows smoking inside the casinos. Wild Rose spokeswoman Maureen Roushar. Said that residents from neighboring states like Illinois players for instance, troop to Iowa just to play because the state allows smoking inside the casinos, unlike other states where smoking is not allowed.