February marks 10-month revenue drop at Ohio casinos

The Ohio Casino Control Commission said Tuesday revenues at the Hollywood Toledo Casino were $15.5 million last month. That’s down from $17.2 million in the same month last year — a decrease of 9.9 percent — though 2016 was the best February on record for the casino.

Statewide, revenues were down 6.8 percent in February to $67.2 million. That marks the 10th straight month in which year-over-year revenues were lower.

“Right now the casinos are struggling, they’re really struggling in Ohio, to maintain any type of substantial growth,” said Alan Silver, an assistant professor at Ohio University and recognized expert on the casino industry.

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In 2016, total gaming revenues from the state’s four casinos was $797.9 million, down from $812.3 million in 2015

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It’s not that the gaming industry in Ohio has stagnated, but rather that gamblers are increasingly placing their wages at the state’s seven racinos. Revenue at those seven properties, which combine horse tracks with video slots, rose 8.4 percent in February to $78.3 million.

Mr. Silver said the racinos have been helped by their location as well as positive efforts to draw in people who might not otherwise visit.

“The racinos have added a tremendous amount of other amenities beyond gaming,” he explained. “Those amenities a lot of times pull people into the property. Once they get pulled in, they’re going to sit down and they’re not going to leave without dropping money into the machines.”

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Even though Toledo had the biggest year-over-year decrease in February, it has been somewhat more insulated from those issues than the casinos in Cleveland, Columbus, and Cincinnati

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It’s at least a two-hour drive from most parts of the city to reach any of the state’s racinos.

Mr. Silver also said Toledo’s casino, which is operated by Penn National Gaming Inc., is seemingly well-run with a strong marketing program.

“Toledo has done a great job,” he said “There’s a lot of locals coming there. They do a great job with their database; they send out a lot of offers to get repeat visitation.”

The monthly revenue figures reported by the state include only revenue collected from gambling. The casinos don't report revenue collected from the sale of merchandise, food, or drink.

State law levies a 33 percent tax on gaming revenues, with that money divided among school districts, county governments, and some larger cities, including Toledo.