Many regional casino markets that have struggled since the recession are showing signs of life, helped in part by low gasoline prices. Bloomberg reports that after months of decline, revenue in some markets—including Louisiana—began rising in December. Casino winnings rose 21% across Louisiana from a year earlier in December. As Daily Report previously reported, Baton Rouge’s three riverboat casinos saw their collective winnings rise 1.3% on the month.
But Louisiana isn’t the only state that appears to be shaking off sluggishness in its gaming industry. In Ohio, casinos saw their winnings rise 12% in December. And in January, revenue increased 15% at casinos in Indiana and 9.6% in Missouri.
Operators of regional casinos said lower gasoline prices are encouraging customers to spend, as are gains in employment and consumer confidence. A milder winter than last year in many Midwest and Southeast markets also helped.
“It was more than just a better weather story as we talk about results,” Virginia Shanks, Pinnacle Entertainment Inc.’s chief administrative officer, recently said in a conference call. “The consumer seems to have wind at their backs based on January and February performance at our properties. These improvements are broad-based geographically and across all customer segments.”
Pinnacle owns both of the L’Auberge casinos in Louisiana; one of which is in Baton Rouge and the other in Lake Charles. So-called regional markets, including Baton Rouge, primarily draw nearby customers and are in contrast with the Las Vegas Strip, where gambling fell 2.1% last year.
While Baton Rouge’s casinos showed a rebound in December, the three collectively won about $278.7 million from gamblers in 2014, about $7.2 million less—or 2.5%—than the $285.9 million they won in 2013. Local casino winnings figures for January are expected to be released by the Louisiana Gaming Control Board in the coming weeks.
