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* There’s a simple reason why Las Vegas casino owners tear down their establishments and/or build new ones on such a regular basis. Gamblers love new casinos. It’s a silly sentiment, since slots are usually far tighter at expensive new casinos in order to pay for all that fancy construction. But gamblers aren’t exactly taking mathematically sound risks when they walk in the door.
Anyway, this story is not surprising on any level…
The new gambling palace in Des Plaines opened as the biggest money-maker among Illinois casinos, but some suburban leaders say the cost to existing establishments argues against further expansion of gambling.
In its first six weeks since opening July 18, Rivers Casino grossed almost $52 million, according to figures released by the Illinois Gaming Board.
But Rivers’ gain apparently came at the expense of existing Chicago-area casinos. The Des Plaines establishment earned almost twice as much as any other Illinois casino in August, and at all but one of the nine existing casinos, revenues for the month were down from the same time last year. […]
Tom Swoik, executive director of the Illinois Casino Gaming Association, said the reductions at other casinos showed the danger of a legislative proposal to open five new casinos, including one in Chicago, plus add slots at racetracks.
* The Gaming Board, in all its wisdom, chose Des Plaines at least partly because it was so close to Chicago, which is off-limits by law right now to a casino. The Board could’ve chosen a site nearer our Wisconsin or Indiana borders to attract out-of-state money, but the Board decided to focus on bringing in Chicago cash, which has now apparently resulted in cannibalizing the Elgin casino, the next closest site…
The [Elgin] Grand Victoria Casino’s revenues for August, down 24 percent compared to August 2010, are also down nearly 20 percent from just last month.
* But how much of that Elgin dropoff is cannibalization and how much should be laid at the feet of the lousy economy and the overall age of the facilities? Take a look at the August-to-August comparison for every Illinois casino…
They’re all down except Rock Island, which is, by the way, still a fairly new casino.
* The point here is that the cannibalization by Des Plaines of Elgin and other casinos is most likely occurring. However, the economy and the “newness” issue are also factoring in here.
And whatever cannibalization we’re seeing is purely the Gaming Board’s fault. They picked Des Plaines.
The General Assembly, on the other hand, has chosen to site new casinos that the Gaming Board chairman has repeatedly claimed will cannibalize existing locations. But that’s the GA’s prerogative, just as it was the chairman’s several years ago when the board chose the Des Plaines site. He should probably drop this line of argument.
posted by Rich Miller
Tuesday, Sep 13, 11 @ 12:45 pm
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I think it is way too early to make assessments on the impact of Des Plaines on other casinos — as pointed out, the gambling community is excited and curious about the new Des Plaines casino. The real test will be is if they CONTINUE to patronize Des Plaines over the other casinos months and years down the line.
Comment by Just Observing Tuesday, Sep 13, 11 @ 12:56 pm
I suspect Potawatomi in Milwaukee is feeling it, too,judging by their huge ad buy in the Chicago market in recent weeks, offering $50 in chips for anyone who shows up with an Illinois DL.
Comment by wordslinger Tuesday, Sep 13, 11 @ 12:57 pm
How about indiana and Wisconsin casinos? To be fair about it, we really need to throw them in the pot too when making these comparisons.
Comment by Joe Schmoe Tuesday, Sep 13, 11 @ 12:59 pm
New casinos are like new restaurants. Everyone wants to try the latest and greatest. Ultimately, folks are going to gravitate to the place that they feel most comfortable.
Comment by Stones Tuesday, Sep 13, 11 @ 1:01 pm
This gives Quinn a new angle to A/V the huge casino bill. Word and Joe Schmoe point out the critical missing data point: how did/does Rivers impact Wisconsin and Indiana casinos? To me, that’s the salient point with regard to the new legislation.
I’m guessing the Pritzkers and other current casino owners are terrified of more Illinois competition, especially a Chicago casino. These numbers give Quinn more cover to change the bill.
But whatever he does with the casino bill, lots of people will complain. That, friends, is a sure bet.
Comment by 47th Ward Tuesday, Sep 13, 11 @ 1:07 pm
This Saturday is SuperNight at Balmoral, so expect all local casino revenue to be off.
Comment by Milburn Drysdale Tuesday, Sep 13, 11 @ 1:21 pm
So IL came out $15 million + ahead.
Too bad Des Plaines had to suffer all the years of Foot Draggin’s Jaffee to get going.
BTW Elgin gamblers(we know that sounds redundant) were still plunkin’ down over $600K evey day of the week…that’s $25K an hour. Not too shabby unless your name starts with a P
Comment by CircularFiringSquad Tuesday, Sep 13, 11 @ 1:27 pm
From the article:
“Statewide casino revenues increased in August by 18 percent, to $137 million (up from $115 million), over the same month last year.”
Wasn’t that the aim?
Comment by No Peotone Airport Tuesday, Sep 13, 11 @ 1:31 pm
===- Joe Schmoe - Tuesday, Sep 13, 11 @ 12:59 pm:
How about indiana and Wisconsin casinos? To be fair about it, we really need to throw them in the pot too when making these comparisons.===
The Horseshoe in Hammond was off by 19% from the year previous. But even adding in the drop in Indiana revenues along with the drop in Chicago area boats, the total new revenue is at least $13 mil. And that is suggesting that the drop in the others was caused 100% by DesPlaines, which I dont think is the case.
The second closest boat to DesPlaines is Aurora and they are only down $600 thousand. AND their admissions are actually up. Just less per person. I would argue that has more to do with the economy than the new boat. Joliet Hollywood also had more admissions.
In addition, the East Chicago boat, Ameristar, which is the next closest Indiana boat is almost exactly the same as last year.
(Potowatomi is an Indian casino so there are no quick numbers that I can find)
Comment by Been There Tuesday, Sep 13, 11 @ 1:49 pm
I agree that the jury is out on the long term effect, but for folks who live in Chicago and the north/northwest/western burbs, not wanting to drive to Elgin or Aurora is a huge incentive to visit Rivers.
Anecdotally, some of my friends who frequent casinos say this place doesn’t rate with other casinos in the area and will not return after a let’s go see it visit…
Comment by Loop Lady Tuesday, Sep 13, 11 @ 1:51 pm
Total revenues up. ‘Nough said.
Comment by Cincinnatus Tuesday, Sep 13, 11 @ 1:52 pm
I have visited one casino in my life. It was one of those river boats permanently docked on the banks of the Mighty Mississippi in East St Louis.
What a dive. Really, these places should re-invent themselves about every 5-7 years. Who wouldn’t jump at the chance to visit a clean, new casino when the old ones look like a Venture Store on the brink of bankrupcy?
Comment by dupage dan Tuesday, Sep 13, 11 @ 2:06 pm
One month does not a trend make. Let’s see how it looks in the tri-state area in six months.
So far, the State is ahead.
Comment by Plutocrat03 Tuesday, Sep 13, 11 @ 2:15 pm
The state still needs the Chicago casino to keep the Illinois players money from going to Indiana. Hopefully Quinn comes to his senses and realizes the money is to much to pass up or some type of compromise is reached. Hammond and east Chicago casino parking lots are still filled with mostly Illinois lic. Plates. If Quinn really wants to stick it to Mitch daniels this is how hit them in the pocketbook.
Comment by Fed up Tuesday, Sep 13, 11 @ 2:42 pm
Four Winds in New Buffalo, MI is pretty new, too, and they have a lot of golf nearby.
There’s no lack of casinos in the Midwest, anymore. It’s not hard to imagine a Chicago casino driving somebody in Illinois or Indiana out of business.
Comment by wordslinger Tuesday, Sep 13, 11 @ 3:25 pm
The casino in Davenport Iowa had always out-performed the old Rock Island riverboat casino. But since Jumers opened the brand new luxury casino in Rock Island IL in late 2008 it has out performed the Davenport IA casino every single month for 33 months now. The new luxurious surroundings are all part of the “high roller” image a gambler is looking for.
Comment by way south of I-80 Tuesday, Sep 13, 11 @ 3:34 pm
Des Plaines casino is not gambler-friendly: the table minimums are too high, and the slots are those awful computerized screens instead of actual reels. Attendance will fall off. My gambling friends hate it.
Comment by Ace Matson Tuesday, Sep 13, 11 @ 4:08 pm
Wordslinger - I’m not much of a gambler but Four Winds is FAR superior to any Illinois casino facility wise. Our casinos are the relative equivalent of Fremont Street compared to Bellagio (Four Winds). In fact, if I recall the gaming floor of Four Winds would be 2nd largest if it were located in LV.
Comment by Stones Tuesday, Sep 13, 11 @ 4:24 pm
@Ace Matson — I also heard the table minimums are way too high. My friends and I were going to go there and check it out, and eat at one of their restaurants — we scrapped those plans after we heard the table minumums were super high.
Comment by Just Observing Tuesday, Sep 13, 11 @ 4:37 pm
===I also heard the table minimums are way too high.===
$25 is the usual. That’s no big deal for my wife, who is close to an expert blackjack player. It’s far too high for an amateur like myself, however.
Comment by Rich Miller Tuesday, Sep 13, 11 @ 4:53 pm
===we scrapped those plans after we heard the table minumums were super high.===
There is no reason to lower them until there are no lines to get a seat.
Comment by Been There Tuesday, Sep 13, 11 @ 5:00 pm
Going to a riverboat casino should be a punishment for low level offenders. Gosh, what dumps. The casinos in Wisconsin are nothing much either. Why anyone would want to spend time in one of those places is beyond me. I guess gambling must really be an addition like they say.
Comment by DuPage Dave Tuesday, Sep 13, 11 @ 5:12 pm
Bring a casino to McCormick Place See what happens in Des Plaines.
Comment by Sky Masterson Tuesday, Sep 13, 11 @ 10:14 pm