In West Virginia, profits at the Mountaineer Casino Racetrack And Resort have reportedly dropped to less than half their 2014 levels due to the recent implementation of an indoor smoking ban and ever-rising competition from casinos in the neighboring states of Ohio and Pennsylvania.
According to a report from the Herald-Star newspaper, the Chester area property on the banks of the Ohio River recently reported third-quarter adjusted earnings before interest, tax, depreciation and amortization of $3.95 million, which represented a 38.7% drop from the same period last year and a 56.5% decrease from the 2014 figure.
Owned by Reno-based Eldorado Resorts Incorporated, the casino in the state’s northern panhandle also saw total net revenues for the three months to the end of September decline by 9.2% year-on-year to $36.68 million while operating income fell by 62.6% to stand at only $1 million.
Eldorado Resorts Incorporated declared that the Hancock County indoor smoking ban, which was enacted in July of last year, had “continued to impact property results” despite the construction of an outdoor gambling area complete with slots and gaming tables.
The largest employer in Hancock County, the Mountaineer Casino Racetrack And Resort has moreover been significantly impacted by competition from the Rivers Casino Pittsburgh and The Meadows Racetrack And Casino, both of which are located only 43 miles away, while last year saw Penn National Gaming Incorporated begin operating a racino at the Hollywood Gaming At Mahoning Valley Race Course facility some 45 miles to the north near the city of Youngstown, Ohio.
Eldorado Resorts Incorporated additionally reported that its Presque Isle Downs And Casino some 142 miles to the north also had a bad third quarter with adjusted earnings before interest, tax, depreciation and amortization shrinking by 1% year-on-year to $5.53 million while the Erie County property’s total net revenues for the three-month period came in at $39.25 million, which represented a fall of 0.1%.
“Since the middle of 2014, we have successfully executed a multi-pronged growth strategy comprised of organic growth through targeted return-focused facility enhancement projects, a $10 million cost savings program and refined operating management disciplines,” read a statement from Gary Carano, Chairman and Chief Executive Officer for Eldorado Resorts Incorporated. “These initiatives have been complemented by growth through accretive acquisitions, which expanded our scale, operating efficiencies and margins”
The Herald-Star reported that this strategy is seemingly working for the operator’s Scioto Downs racino near Columbus, Ohio, as its third-quarter adjusted earnings before interest, tax, depreciation and amortization rose by 4.4% year-on-year to $14.65 million while the facility’s total net revenues hit $41.96 million, which was a 4.5% boost.
“Our three largest contributing operations remain key catalysts for our business as adjusted earnings before interest, taxes, depreciation and amortization increased year-on-year at all three with adjusted earnings before interest, taxes, depreciation and amortization for our Reno tri-properties up 7.1%, Scioto Downs increasing 4.4% and Eldorado Shreveport rising 13.6%,” read the statement from Carano.