Fish - Wildbill Remember our discussions about the Iowa oversupply situation?
I'm a bit suprised about a 30% drop but oversupply is clearly the reason here. I wonder if the market will digest it or if its already at its limit?
We'll see
Tuesday, January 11, 2005 5:51 AM CST
Lakeside Casino revenue down after Prairie Meadows competition
OSCEOLA (AP) --- Lakeside Casino Resort in Osceola reports that revenues tumbled last month after additional gambling options became available at Prairie Meadows Racetrack and Casino in Altoona.
Lakeside reported nearly a 30 percent drop in revenues in December.
Kevin Preston, Lakeside's general manager, said Monday he expected a 10 percent to 15 percent casino decline in December, but he added that several more months would be needed to fairly assess Prairie Meadows' impact.
Prairie Meadows on Dec. 13 added 33 table games to its 1,491 slot machines. Action has been heavy, with up to 30 people waiting at times for seats at the tables.
"We were very satisfied with the results," General Manager Bob Farinella said. "We're ahead of our expectations."
During the two-plus weeks they were available in December, table games at Prairie Meadows Racetrack and Casino generated $816,218. The casino's gross revenue for the month was $15,089,029.
Lakeside's table games took in $684,444 for the entire month. Last year's December take was $958,834.
Slot machine revenue in Osceola also fell in December, by about 9 percent. At that rate, Lakeside would lose about $8 million annually from its $55 million casino operation.
Jack Ketterer, administrator of the Iowa Racing and Gaming Commission, said a number of factors could have combined to drive Lakeside's December numbers down. Last month, for example, had four Saturdays; there were five in December 2003. Saturdays are typically the busiest for casinos, he said. Weather could also have been a factor.
"It might be just a little bit too soon to tell" whether Prairie Meadows will have a lasting negative effect, Ketterer said.
Prairie Meadows will move forward with a $60 million expansion that should be complete by the beginning of 2007. That plan is for another 500 slot machines, 32 more table games, a buffet, a steakhouse and a multipurpose room. The expansion is expected to generate an extra $56 million a year.
The expansion must be approved by the gaming commission, which meets Thursday.
"If all things work out well, we anticipate groundbreaking in early summer," Farinella said.
Preston said Lakeside, which was sold for $287 million last summer to a Las Vegas gambling company, will get an updated look inside and out within the next six months, along with updated slot machines.
"Of course, then everyone is going to try to come here," he predicted.
Preston has said that nearly 30 percent of his customers are from Polk County.
December table-game revenue at Iowa's nine other state-regulated casinos was mixed. Besides Prairie Meadows, three posted per-table gains for the month. Ameristar and Harrah's in Council Bluffs each topped $1.8 million, with an average of more than $46,000 per table -- but recorded decreases from the same month last year.
I'm a bit suprised about a 30% drop but oversupply is clearly the reason here. I wonder if the market will digest it or if its already at its limit?
We'll see
Tuesday, January 11, 2005 5:51 AM CST
Lakeside Casino revenue down after Prairie Meadows competition
OSCEOLA (AP) --- Lakeside Casino Resort in Osceola reports that revenues tumbled last month after additional gambling options became available at Prairie Meadows Racetrack and Casino in Altoona.
Lakeside reported nearly a 30 percent drop in revenues in December.
Kevin Preston, Lakeside's general manager, said Monday he expected a 10 percent to 15 percent casino decline in December, but he added that several more months would be needed to fairly assess Prairie Meadows' impact.
Prairie Meadows on Dec. 13 added 33 table games to its 1,491 slot machines. Action has been heavy, with up to 30 people waiting at times for seats at the tables.
"We were very satisfied with the results," General Manager Bob Farinella said. "We're ahead of our expectations."
During the two-plus weeks they were available in December, table games at Prairie Meadows Racetrack and Casino generated $816,218. The casino's gross revenue for the month was $15,089,029.
Lakeside's table games took in $684,444 for the entire month. Last year's December take was $958,834.
Slot machine revenue in Osceola also fell in December, by about 9 percent. At that rate, Lakeside would lose about $8 million annually from its $55 million casino operation.
Jack Ketterer, administrator of the Iowa Racing and Gaming Commission, said a number of factors could have combined to drive Lakeside's December numbers down. Last month, for example, had four Saturdays; there were five in December 2003. Saturdays are typically the busiest for casinos, he said. Weather could also have been a factor.
"It might be just a little bit too soon to tell" whether Prairie Meadows will have a lasting negative effect, Ketterer said.
Prairie Meadows will move forward with a $60 million expansion that should be complete by the beginning of 2007. That plan is for another 500 slot machines, 32 more table games, a buffet, a steakhouse and a multipurpose room. The expansion is expected to generate an extra $56 million a year.
The expansion must be approved by the gaming commission, which meets Thursday.
"If all things work out well, we anticipate groundbreaking in early summer," Farinella said.
Preston said Lakeside, which was sold for $287 million last summer to a Las Vegas gambling company, will get an updated look inside and out within the next six months, along with updated slot machines.
"Of course, then everyone is going to try to come here," he predicted.
Preston has said that nearly 30 percent of his customers are from Polk County.
December table-game revenue at Iowa's nine other state-regulated casinos was mixed. Besides Prairie Meadows, three posted per-table gains for the month. Ameristar and Harrah's in Council Bluffs each topped $1.8 million, with an average of more than $46,000 per table -- but recorded decreases from the same month last year.
