Slot business up at South Florida's casinos

The eight pari-mutuels took in $521.6 million in slot revenues for the fiscal year ending June 30, compared with $497 million in 2013-14.

The Isle Casino in Pompano Beach again led horse tracks, dog tracks and jai-alai frontons in slot revenues, garnering $145.6 million — a $12 million increase.

But state figures show that the casino actually had less action: The total amount pumped into Isle slots was $2 billion, compared with $2.18 billion in 2013-14. The greater revenue came via the casino's "hold" — in other words, the machines simply paid out less. The Isle's payout percentage was 91.57 percent, compared with 92.88 the year before. So the casino took in more money overall.

Isle executives referred questions to the company's quarterly materials, where there was no mention of higher holds. Casinos can dictate whether "tighter" or "looser" chips — which control the payback rates — are placed in most slot machines, but Isle players also simply could have been on a run of bad luck.

And note that the Isle's $2 billion figure is referred to as "coin in," which is much higher than the total amount players plunk down. For an extreme example, if you go through $100 on a slot machine, win $80 and then lose all of that, it counts as $180 coin in, not $100.

Isle players also could be playing lower-denomination machines. Gambling expert Mark Pilarski of Casino City Times notes that payback on the Las Vegas Strip is 89 percent for nickel machines, 93 percent to 94 percent for quarters and 96 percent for dollars. Casinos keep machine activity confidential.

Chad Beynon, vice president and senior analyst for Gaming and Leisure at Macquarie Capital in New York., said Florida's overall slot picture looks better than most, as casinos endured a bit of a down year, exacerbated by poor weather up north.

"Florida was one of the best performers in the country in 2014, and it's one of the best performers since January," he said. "We continue to believe that Florida will be one of the healthier markets in the country given wage growth, employment trends and home prices."

He's also bullish on the Isle in particular, which is in north Broward County and also attracts gamblers from Palm Beach County, which is not allowed to have slots. The Isle's $145 million did more than double the business of six of the other casinos and would have doubled them all if not for Magic City Casino's $80 million year

"The Isle has a great location, revamped strategy and opportunity to extend onto the property with a convention center or hotel," he said, noting that all casinos are waiting on the Florida Legislature to establish gambling regulations for the future and the Isle owns 223 acres. "We think they'll move forward on a project that makes the Isle an even more powerful player in the market."

In their annual report, Isle officials cited an improved loyalty program and said they have introduced several "targeted non-gaming amenities." The casino reworked the menu at its Bragozzo restaurant this year.

Hialeah Park, which opened in August 2013, was up to $64.1 million this year, compared with $51.6 million in 2013-14, when it was open only 10 months. The rest of South Florida's racetrack casinos weren't far away from last year, although it's notable that Gulfstream Park Racing and Casino prevailed this year in its Hallandale Beach rivalry with Mardi Gras. Gulfstream took in $49.1 million to Mardi Gras' $47.9 million, almost a reversal from the year before. Gulfstream increased its horse racing sessions this year, attracting more foot traffic to the property.

Slot machines are legal only at Broward and Miami-Dade racetrack casinos and at eight Native American casinos, which don't have to release their slot revenues nor their payback percentages. The state tracks the action and taxes slot revenues at 35 percent, which made $182 million for Florida this year.