2016 Louisiana Casino/Racino Gaming
Revenues
Fourth Quarter improvement, but the
decline continues
Fourth
Quarter 2016 year-over-year gaming revenues for Louisiana casinos and racinos
were an improvement over the first three quarters, but overall they were below
the same 2015 fourth quarter. Our charts
below display both 4th quarter and the full year revenue comparisons
for the years 2015 and 2016.
These
declines are now in excess of our projections detailed in our September 1, 2016 blog note and our blog notes from 2014.
Further, we continue with our assertion that the likely cause of
declines is in gaming revenues is the continuing low oil and natural gas prices
thereby depressing Louisiana and Texas oil and gas industries.
Our second
assertion is that within each market there is the beginning of stagnation of
revenues due to an excess of casino and racino facilities and significant
separation between large, new, effectively operated facilities and others.
Our on-site
visits to each of the Louisiana casinos and racinos in 2014, 2015 and 2016 have
provided additional evidence of this decline, separation and stagnation.
With a
continuation of troubles in the Louisiana and Texas energy sector, future
declines would add to the likelihood of one or more casino and racino
facilities being shuttered, sold or having a reorganization of ownership some
time during the next three to six months.
Chart 1 – What happened in Q4 2016 ?
|
Oct-Dec 2015
|
Oct-Dec 2016
|
$ Change
|
% Change
|
|
|
Shreveport/ Bossier City
|
$172,063,872
|
$162,924,445
|
($9,139,427)
|
-5.31%
|
|
Baton Rouge
|
93,787,445
|
99,128,389
|
$5,340,944
|
5.69%
|
|
New Orleans
|
147,840,863
|
142,072,503
|
($5,768,360)
|
-3.90%
|
|
Lake Charles
|
216,375,032
|
224,498,189
|
$8,123,157
|
3.75%
|
|
Total Louisiana
|
$630,067,212
|
$628,623,526
|
($1,443,686)
|
-0.23%
|
Chart 2 – And what happened in the
calendar year 2016 ?
|
Jan-Dec 2015
|
Jan-Dec 2016
|
$ Change
|
% Change
|
|
|
Shreveport/ Bossier City
|
$729,505,081
|
$688,750,938
|
($40,754,143)
|
-5.59%
|
|
Baton Rouge
|
379,520,470
|
379,176,289
|
($344,181)
|
-0.09%
|
|
New Orleans
|
626,185,220
|
582,788,969
|
($43,396,251)
|
-6.93%
|
|
Lake Charles
|
907,446,804
|
887,814,468
|
($19,632,336)
|
-2.16%
|
|
Total Louisiana
|
$2,642,657,575
|
$2,538,530,664
|
($104,126,911)
|
-3.94%
|
Year-over-
comparisons show continued declines in each of the four market areas with an
overall slower decline in fourth quarter revenues. We will continue to publish quarterly revenue
reports along with results of our visits to facilities in each region.
Specific
facility studies and requests are available by request to jamesmcgregorsr@gmail.com or calling 904-859-7344.
Stay tuned.
