Louisiana Casino Revenues Down 1.7% To $214m In August

The Louisiana Gaming Control Board has released its financial results for August, revealing a slight 1.7% drop in revenues to $214.1 million, compared to the $217.8 million that was generated in the same month in 2014. The decline would have been considerably more if not for the Lake Charles, however, which saw a 21.5% increase in y-o-y earnings following the opening of its Golden Nugget Hotel & Casino. Meanwhile, the states other casino areas all reported a contraction in earnings, including New Orleans, Baton Rouge, Shreveport-Bossier, and Opelousas.
Overall, the New Orleans market, which includes Harrah’s, three riverboats and the Fair Grounds racetrack, generated $48.4 million in August. Weighing heavily on the results was Louisiana’s only land-based casino, Harrah’s, which saw its revenues fall by 17% to $22.6 million. According to the venue, the decline was mostly a result of the city’s smoking ban, which means gamblers must now leave the slots and table games when they want a cigarette. Harrah’s has already applied for a permit to build two outdoor courtyards to address this very issue.
Elsewhere, Shreveport-Bossier’s six riverboat casinos, together with Harrah’s Racetrack, produced $60 million in revenues, down 15.7% compared to last August. Baton Rouge’s three riverboat casinos generated 23.3 million in August, down 4.3% from the $24.4 million collected last year. And finally, Opelousas’s Evangeline Downs racetrack was down 3.3% at $7.3 million.
On the flip side, however, Lake Charles was the only region to report an increase in y-o-y earnings, with its three riverboat casinos generating 35.7% more revenues at $60.4 million, although the Delta Downs track took in $14.7 million, down 15% versus last August. As mentioned, the $700 million Golden Nugget Hotel & Casino which opened in December 2014 added considerably to the region’s fortunes, as gamblers flocked to the luxury resort, as well as its golf course, private beach, marina, restaurant and spa. The proximity of the resort also makes it a popular destination for Texans, whose own state offers just one Indian casino. As a result, 65% of the Lake Charles’ casino gambling revenues are currently derived from the Texan market.