RubinBrown Gaming Stats 2013

COMMERCIAL GAMING HEADLINES

Missouri Isle of Capri opens Missouri’s thirteenth casino in late October 2012, the last remaining license in the state. The casino, located in Cape Girardeau, came with a $135 million price tag. The facility offers over 1,000 gaming positions, including both table games and slot machines. Caesars Entertainment leaves the St. Louis market as Penn National expands its footprint. In May, Caesars announced a deal to sell the Harrah’s Maryland Heights Casino to Penn National Gaming for $610 million. In November, Penn National rebranded the casino as Hollywood Casino St. Louis. The property is Penn National’s second casino in the St. Louis market.

Nevada Nevada Gaming Control Board Technology Division discontinues the pre-approval testing of gambling games and devices. Effective July 1, 2012, the pre-approval of gambling games and devices must be performed by independent testing laboratories, such as Gaming Laboratories International, Inc, as the board closed the state-run testing laboratory. Nevada Gaming Control Board moves forward with online poker. The state is currently working through the licensing of service providers and operators. Included is social game maker Zynga, which would potentially allow patrons to wager real money instead of virtual chips on social games such as Zynga’s Poker. Pinnacle buys Ameristar for $2.8 billion. The sale consisted of $1.9 billion in debt and $869 million in cash. Pinnacle executives stated the acquisition would save the consolidated company around $40 million in costs and boost the bottom line. The acquisition also doubles the number of Pinnacle properties and improves their geographic diversity.

New Jersey Super storm Sandy causes record decrease in New Jersey casino revenues. November revenue was down 27.9% ($68.2 million), with every casino reporting a decrease. The decline continued into December, as revenue declined $21.9 million (8.9%). After opening in April 2012, the $2.4 billion Revel Casino receives its second round of financing to get through the winter season. In December the casino received $150 million in debt financing from JP Morgan Chase bank. The loan will be used to pay existing debt and expand the current offerings through more slot machines and lower priced restaurants. New Mexico Racino companies collectively request fewer racing days, citing increased expenses and revenue declines of 40%. The New Mexico Racing Commission ultimately approved 288 days of live racing for 2013, which equals the number of racing days in 2012. The Horsemen’s Association originally requested 323 racing days. Raton city officials and investment group in talks to build a racino and event center. The complex is anticipated to cost $50 to $75 million. Investors also envision a city-financed events center adjoining the property, attracting visitors throughout the year.

14 | 2013 Commercial & Tribal Gaming Stats