Ohio Casino Revenue Jumps 5.4% to $70.3 Million in August

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Friday, September 21st, 2018 | Written by Shane Larson

Ohio’s four state-approved casinos closed out summer in a solid fashion after generating $70.3 million in August, or 5.4% more than the $66.7 million that they collected in the same month last year. From that tally, table games saw their revenue improve modestly by 1.3% to $22.5 million year-on-year, while slots experienced a 7.2% jump in business to $44.2 million from the $47.5 million taken in August 2017.

Casino Market Analysis

Leading Ohio’s casino market last month in terms of revenue was the Penn National Gaming owned Hollywood Columbus on $18.4 million, up by 1% from a year earlier. The company’s other Ohio property, the Hollywood Casino Toledo, also put in a strong performance with its revenue improving by 3% to $16.7 million last month, according to the figures released last week by the Ohio Casino Control Commission.

The Buckeye State’s two other casinos are owned by Jack Entertainment LLC, with its Jack Cincinnati Casino posting the highest year-over-year growth after its revenue surged by 15% to $17.7 million in August versus the $15.4 million collected in the same month in 2017. Jack Cleveland Casino was also in positive territory, too, with its revenue rising by around 4% to $17.5 million from $16.8 million last August.

Up 2.1% in 2018

Ohio’s casino market has been a bit choppy since its launch in 2012, as can be seen from the following annual revenue results:

2017: $819 million
2016: $798 million
2015: $812 million
2014: $809 million
2013: $821 million

Ohio’s statewide casino revenue subsequently finished 2.6% higher in 2017, and this year looks on track to post two years of consecutive growth as revenue across the first eight months of the year are currently up by 2.1% at $560.4 million.

Ohio’s Racinos

Ohio also boasts seven racinos which are overseen by the Ohio Lottery Commission, with the establishments essentially horseracing venues where video lottery terminals are available. In August, they generated $87.4 million in revenue, marking a whopping 11% increase from the $79 million taken a year earlier.

Topping the market once more was the Hard Rock Rocksino with revenue of $21.4 million (+5%), followed a way back by Scioto Downs on $15 million (+9.8%), and Miami Valley Gaming on $13.8 million (+16.5%). In the meantime, JACK Thistledown Racino collected $11 million (+14%) in August, while Hollywood Mahoning Valley was not far adrift on $10.2 million (+12.5%), with Hollywood Dayton and Belterra Park bringing up the rear on $8.8 million (+9.5%) and $7.2 million (+5.7%) respectively.

MGM Enters Ohio market

Ohio’s racino market has continued to go from strength to strength over the past few years, and while combined casino and racino revenues came in at $1.78 billion in 2017, much of the 5% growth was accounted for by the racino sector. Although sports betting now looks unlikely to pass necessary legislation in 2018, the segment is widely expected to become a feature of the state’s gambling market next year.

In the meantime hospitality and casino giant MGM Resorts has positioned itself accordingly after purchasing the Hard Rock Rocksino and its 2,300 video lottery terminals for $1 billion. During the last financial year through to June 30, the venue earned $293 million in net revenues, and has also been the state’s highest grossing racino in 35 out of the last 39 months. Commenting upon the company’s latest acquisition, MGM Resorts International CEO Jim Murren stated:

“Since opening its doors in 2013, the Rocksino has cemented itself as the market leader in gaming and entertainment due to its superior asset quality, premium location and dedicated employees. We believe the Rocksino is a great fit for the MGM portfolio and will benefit from our capabilities as a leading global entertainment company. We anticipate revenue and profit growth from this combination.”

Problem Gambling Concerns

Ohio’s thriving gambling market comes with a cost, and according to data supplied by the Ohio Department of Mental Health and Addiction Services there are currently 76,000 Ohioan, or around 1% of the state’s population, suffering from a gambling addiction. Furthermore, Steve Kapela from the Toledo-based Zepf Center has warned that the situation is likely to get worse, citing contributing factors such as last November’s decision to allow the purchase of lottery tickets using a credit card, and the possibility of legalized sports betting passing in Ohio next year.

While each month casinos pay a proportion of their revenues towards addiction services, Kapela has said that state addiction programs are hopelessly underfunded, and that more must be done in order to address activities such as online gambling before the situation worsens and more lives are ruined.