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
