Ohio Casino Revenue Rises 5.4% to $70.3M in August

Ohio Casino Revenue Rises 5.4% to $70.3M in August

Aside from a slow start in January, Ohio’s casino market has been returning year-on-year growth every month so far this year. August was no exception, either, with the $70.3 million in revenue generated up by 5.4% compared to the $66.7 million taken in the same month in 2017.

As a result, Ohio’s casino market has now collected $560.4 million over the first eight months of the year, and is currently higher by 2.1% compared to the same period in 2017. Furthermore, it looks on track to produce a second consecutive year of growth for the first time since the industry was launched back in 2012, as can be seen from the following annual results:

2013: $821 million
2014: $809 million
2015: $812 million
2016: $798 million
2017: $819 million

Casino Market Analysis

In August, table games posted a modest 1.3% revenue uptick to $22.5 million versus last year, while Ohio’s slots market was on fire and saw its business jump by 7.2% year-on-year to $44.2 million from the $47.5 million collected in August 2017.

Generating the lion’s share of revenues in August was the Penn National Gaming owned Hollywood Columbus, whose $18.4 million in revenue was 1% higher from a year earlier. The other venue owned by the national casino and racetrack operator, the Hollywood Casino Toledo, also enjoyed a solid month with its earnings increasing by 3% to $16.7 million, according to the latest figures released by the Ohio Casino Control Commission.

Jack Entertainment LLC owns the state’s two other casinos, including the Jack Cincinnati Casino which reported the highest year-over-year growth of 15% in August after collecting $17.7 million compared to $15.4 million taken in the same month a year earlier. In the meantime, Jack Cleveland Casino also noted a 4% revenue rise to $17.5 million last month, in the process completing a positive year-over-year clean sweep for all of the state’s casinos.

Ohio’s Racino Results

In 2017, Ohio’s casino market generated $1.78 billion in revenue, up by 5% year-on-year, according to data released by the Ohio Lottery Commission. While casino revenue was up by 2.6% compared to the previous year, however, the state’s 7 racinos provided much of the growth with their business increasing by 7.1%.

The racino market’s results were similarly impressive in August, and saw their earnings soar by 11% to $79 million. Leading the way in terms of revenue was the Hard Rock Rocksino up by 5% to $21.4 million, followed a fair distance back by Scioto Downs on $15 million (+9.8%), and then Miami Valley Gaming with $13.8 million (+16.5%). Next highest was JACK Thistledown Racino which took $11 million (+14%) last month, while Hollywood Mahoning Valley collected $10.2 million (+12.5%), Hollywood Dayton won $8.8 million (+9.5%), and finally Belterra Park earned $7.2 million (+5.7%).

MGM Buys Hard Rock Rocksino

MGM Resorts is one of the gambling industry’s biggest brands, and has continued to expand its operations in recent years. In December, 2016, for instance, it opened the $1.4 billion MGM National Harbor in Maryland, while in August of this year the $1 billion MGM Springfield opened in Massachusetts, making it the state’s first commercial casino.

The company also has operations across numerous other US states, including Nevada, Mississippi, New Jersey, and Detroit, with the Hard Rock Rocksino in Ohio the latest venue to be added to its business portfolio. This is a smart move as not only is the venue the state’s largest gambling resort with 2,300 lottery terminals, but it will also provide MGM with an opportunity to move into Ohio’s sports wagering market if the state does what analysts expect and passes suitable legislation in 2019. Commenting upon the acquisition, MGM Resorts International CEO Jim Murren said:

“Since opening its doors in 2013, the Rocksino has cemented itself as the market leader in gaming and entertainment due to its superior asset quality, premium location and dedicated employees. We believe the Rocksino is a great fit for the MGM portfolio and will benefit from our capabilities as a leading global entertainment company. We anticipate revenue and profit growth from this combination.”