Louisiana Casino/Racino Gaming Revenues Continue Their Decline

Third Quarter 2016 year-over-year gaming revenues for Louisiana casinos and racinos continued their decline.  Our charts below display both 3^rd quarter and the first three quarter’s revenue comparisons for the years 2015 and 2016.

These declines are now in excess of our projections detailed this September and in our 2015 focus on how oil and gas prices impact casino revenues.  Further, they emphasize the likely cause of declines being in large part our contention that the cause is the continuing low oil and natural gas prices. 

Our on-site visits to each of the Louisiana casinos and racinos in 2014, 2015 and 2016 have provided additional evidence of this decline.

With a continuation of troubles in the Louisiana and Texas energy sector, future declines will add further likelihood of one or more casino and racino facilities being shut some time during the next six months.

Chart 1 – What happened in the most recent 2016 quarter?

	July-Sept 2015	July-Sept 2016	Change	% Change
Shreveport/Bossier City	$183,842,352	$173,149,436	($10,692,916)	-5.82%
Baton Rouge	91,752,848	90,271,144	($1,481,704)	-1.61%
New Orleans	161,748,069	142,816,084	($18,931,985)	-11.70%
Lake Charles	231,325,746	229,587,307	($1,738,439)	-0.75%
TOTAL LA	$668,669,015	$635,823,971	($32,845,044)	-4.91%

Chart 2 – And what happened in the first nine months of 2016 ?

	Jan-Sept 2015	Jan-Sept 2016	Change	% Change
Shreveport/Bossier City	$557,441,209	$         525,826,493	($31,614,716)	-5.67%
Baton Rouge	285,733,025	280,047,900	($5,685,125)	-1.99%
New Orleans	478,344,357	440,716,466	($37,627,891)	-7.87%
Lake Charles	691,070,772	663,316,279	($27,754,493)	-4.02%
TOTAL LA	$2,012,589,363	$     1,909,907,138	($102,682,225)	-5.10%

Year-over- comparisons show continued declines in each of the four market areas with third quarter improvements in Lake Charles and a slight improvement in Baton Rouge.  The comparisons show the continued significant declines in New Orleans. 

Stay tuned.