Louisiana Gaming Revenues - First Half 2017

Year-Over-Year First Six Months Net Gaming Revenues for the years 2014 through 2017

The first six months revenues had a rebound for the first six months of 2017 in three of the four regions and in the statewide totals. The 7.4 percent increase in the Baton Region led by L’Auberge of Baton Rouge, exceeded the others by a significant percentage. In addition, only one, the Baton Rouge Region, saw 2017 exceeding their 2015 revenues.    

Source: Louisiana Gaming Control Board Revenue Reports.

Revenue reports include those from the twenty licensed gaming facilities reporting to the Louisiana Gaming Control Board.  They do not include the four Native American Tribal casinos since the Tribal groups do not report to the Louisiana state gaming agency.

Mississippi Gaming Revenues – First Six Months 2017

Year-Over-Year First Six Months Net Gaming Revenues for the years 2014 through 2017

Overall, Mississippi Gaming Revenues were down 2.88% for the first six months 2017 compared to 2016. Mississippi ‘River Counties’ continue to see a decline in their first six months Gaming Revenues, over $81,511,933 or 15.13% from 2014 to 2017. ‘Coastal Counties’ saw a slight decline their first six months Gaming Revenues for the first time in four years. However the Net Revenues in the ‘Coastal’ Region have risen by $58,684,669 or 10.81% during that same 2014 – 2017 period.  

Table 1 – Net Gaming Revenues for the two Regions first Six Months each year (000’s)        

Arkansas Racino Revenues – First Half 2017

Year-Over-Year Net Revenues (Net Wins) increase significantly again

Arkansas has two licensed gaming facilities, Oaklawn Racetrack and Casino in Hot Springs, and Southland Park Racetrack and Casino in West Memphis. Each one continues to appreciate significant increases in Net Revenues as a result of their 2015 – 2016 expansions.  

Table 1 : 2017, 2016, 2015 Comparison – Arkansas Racino EGS Net Revenues     

JAN-JUN		Net Revenue*		Y-o-Y		%Win**
2017	$180,563,640		8.5%		6.82%
2016	166,441,566		35.9%		N/A
2015	122,455,761		27.9%		N/A

*Net Revenue is designated as ‘Net Win’ by the Arkansas Racing Commission.  It is the dollars wagered minus the payouts.

  **  “% Win” is defined as Net Win as a percentage  of dollars wagered.

         

  Table 2:  2014 - 2017 EGS Net Revenues for the two facilities first six months of each year

	2014	2015	2016	2017
Oaklawn	$33,792,897	$47,094,323	$62,180,146	$68,164,609
Southland	$61,914,065	$75,361,438	$104,261,420	$112,385,031
Total	$95,706,962	$122,455,761	$166,441,566	$180,549,640

Source:  February through July 2017 Electronic Games of Skill Revenue Reports, Arkansas Racing Commission

2017 Florida Net Racino Slots Revenues Show Slight Increase

In the first half of 2017, we see a slight increase of 1.1% in Net Revenues from slot machines at racinos. However, the decline in the rate of growth for Florida racino slot machine net revenues continues.  (See our March 2017 revenues report for 2016 year-end numbers.) 

Table:  Florida Racino Slot Net Revenues, 2015-2017

Jan-Jun	Net Revenue*	YoY +/(-)	Promo**	YoY +/(-)
2017	$290,180,990	1.1%	$49,821,203	8.7%
2016	286,880,554	2.3%	45,822,841	10.2%
2015	280,464,109	6.1%	41,566,061	9.5%

* Net Revenue: Dollar amount of money retained by slot machines after paying jackpots.

** Promo: Total dollar amount of promotional credits played at the eight Florida locations.

Source:  University of Nevada Las Vegas, Center for Gaming Research, July 2017.

Slowing Revenue Growth in Florida Racino Slots

2016 Florida Revenues from Slots at Racino: Net Revenues Increase while Growth Slows

The charts and listings below tell the story of slowing growth and more expensive revenues in calendar year 2016 for the 8 Florida Racinos.

2017 proposed legislation for the Florida Racino Industry should require a significant review of what is happening with the eight existing Florida Racinos. The statistics are not indicative of a growth industry. 

Chart 1: Calendar Year Numbers for the 8 Florida Racinos

Chart 1 shows five of the eight Racinos with a decrease in Net Revenues, two with increases and one re-opening with new revenues in 2016.

Casino	Net Revenues	Y/Y % change	Hold %	Promo %	Market Share %
Gulfstream	$47,241,009	-3.49%	6.01%	24.52%	8.65%
Mardi Gras	45,767,506	-5.51%	6.75%	23.12%	8.38%
Pompano	142,287,479	-3.41%	8.17%	17.68%	26.06%
Flagler	81,069,957	-2.92%	6.11%	3.57%	14.85%
Calder	74,370,902	-0.15%	7.18%	25.69%	13.62%
Miami Jai Alai	61,782,543	0.80%	5.40%	16.70%	11.32%
Hialeah Park	70,813,899	6.18%	5.81%	11.80%	12.97%
Dania Jai Alai *	20,046,515	*	6.57%	17.12%	3.67%
Statewide	$543,379,810	2.88%	6.53%	16.75%

*Note – Dania Jai Alai re-opened in January 2016.  It was closed for remodeling during calendar year 2015.

 

Chart 2: Rate of Growth in Net Revenues

Statewide Net Revenues increased 2.88%, a dramatic slowdown from the previous two years. Further, this increase included the re-opening of Dania Jai Alai which added over $20 million to the statewide total in 2016 with zero in 2015. Statewide Net Revenues for 2015 were $530,661,905, an increase of $15,292,861 over 2014. Absent the Dania Net Revenues, statewide Net Revenues would have decreased $4,753,654 or 0.89%.

• Years 2015 to 2016  =  2.88% (with the addition of Dania Jai Alai)
• Years 2014 to 2015  =  4.97%
• Years 2013 to 2014  =  8.11%

Chart 3: Net Revenue Growth per Additional Promotion Credit Invested for the 8 Florida Racinos combined

(ie,how much new net revenue was produced by each additional Promotional Credit?)

Charts 3 and 4 show that the effect of Net Revenue growth per additional promotional credits decreased significantly from 2014 and 2015.

	Additional Promo	New $ Net Rev	New Net/Promo
2015 – 2016	$         10,341,990	$     15,292,861	$                1.47
2014 – 2015	$           4,841,127	$     25,133,659	$                5.19
2013 – 2014	$             -849,240	$     37,941,445	***

***In 2014 Florida Racinos provided $849,240 fewer Promotional Credits than they did in 2013, yet they produced an additional $37,941,445 in additional Net Revenues.

In 2015 Florida Racinos provided $4,841,127 more Promotional Credits than they provided in 2014, and they produced an additional $25,133,659 additional Net Revenues, or + $5.19 per Promotional Credit provided.

In 2016 Florida Racinos provided $10,341,990 more Promotional Credits than they provided in 2015, and they produced an additional $15,292,861 additional Net Revenues, or $1.47 per promotional Credit provided. Promotional Credits in 2016 were only 28.3 % as effective in producing Net Revenues as they were in 2015 and significantly less than in 2014.

Chart 4: Promotional Credits as a Percent of Net Revenue

• 2016 = 16.75%  y/y + 9.55%
• 2015 = 15.29%  y/y + 1.32%
• 2014 = 15.09%

Chart 5: Hold % = Net Revenues as a percent of total Credits In

Chart 5 shows a slight decrease in the Hold % for the overall Florida Racino facilities.

• 2016 = 6.53% (-)
• 2015 = 6.60%  +
• 2014 = 6.35%

Source:  University Libraries, University of Nevada Las Vegas