Casino revenue holds steady

Wins per unit are up considerably

BILOXI – Biloxi’s lure remains strong more than five months after casinos reopened to surprisingly strong revenues following Hurricane Katrina.

The city’s casinos made almost $63 million in gross gambling revenue during May, according to figures released this week by the Mississippi State Tax Commission. That compares to $59.56 million in April and $63.5 million in March.

A year ago, the 12 casinos on the Coast in operation before Hurricane Katrina struck made $113 million.

But the really telling numbers are the wins per unit, according to Scott King, an operations analyst with an MBA in finance who teaches casino management at Tulane’s Biloxi campus.

“Before the hurricane, the average table on the Coast might be getting $1,300 a day,” he said. “Now it’s close to $4,000 a day. A slot machine was at $150 a day. Now it’s close to $400 a day. Those are the numbers to me that really puts it in perspective.”

As more casinos open and hotel rooms come online, King expects the Biloxi market to grow. He’s using New Orleans as a barometer. May revenues in the Crescent City came in at $67.1 million compared to $58 million last May. Harrah’s New Orleans took in $35.7 million, compared to $33 million last May.

“When Harrah’s New Orleans came on, rather than cannibalizing the market, the market actually grew,” King said.

Susan Varnes, the general manager of Treasure Bay, said she believes more gamblers will return as other casinos reopen. Her property could open as early as this afternoon, the first in a wave of summer openings that will be followed by Boomtown, Grand Casino Biloxi, Beau Rivage and the Gulfport Oasis. Boomtown reopens June 29.

“People who don’t like waiting on machines or waiting in line for anything like eating at a buffet will come back,” Varnes said. “As more properties open, it will grow the market.”

The Coast’s gambling capacity increased in late May when the Isle of Capri opened up an area with additional slot machines Memorial Day weekend.

Source: Sun Herald
By TOM WILEMON
tewilemon@sunherald.com

Comments