2016 Louisiana Casino/Racino Gaming Revenues: Q4 Up but Overall Decline Continues

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 4^th 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.