Ohio: Cannibalization and Market Saturation

Pretending Gambling Dollars would magically fall from the sky, Gambling Developers saturated the Ohio market.

The solution bears watching! Will they whine for a tax break?

Horseshoe Casino Cincinnati to enter crowded gambling market

Business Courier

Date: Thursday, December 20, 2012

 

When Horseshoe Casino Cincinnati opens early next year, it will join what has already become a crowded casino and gambling industry in Ohio, the Columbus Business First reported.

 

The state’s gaming industry is growing to the point where it’s able to meet all of the state’s gambling demand, according to an industry outlook report from Fitch Ratings.

 

Revenue will continue to climb with the opening of the Cincinnati casino, as well as more racinos in the state, but they will all see “considerable cannibalization from existing Ohio gaming facilities and gaming facilities in neighboring states” Alex Bumazhny, associate director for gaming, lodging and leisure at Fitch, said in an email.

 

 

Ohio’s gaming industry has state nearly saturated, Fitch finds

Business First by Evan Weese, Web coordinator

Date: Wednesday, December 19, 2012

Evan Weese

Web coordinator- Business First

Janet Adams | Business First

Hollywood Casino Columbus averaged $137 in revenue per slot during each day of November, indicating market saturation.

Ohio’s ultra-competitive casino and gaming industry is growing to a point where it’s able to meet all of the state’s gambling demand, according to an industry outlook report from Fitch Ratings.

Revenue will continue to grow as Horseshoe Casino Cincinnati opens in March, and more racinos join the fray across the state, but they’ll all see “considerable cannibalization from existing Ohio gaming facilities and gaming facilities in neighboring states,” Alex Bumazhny, associate director for Gaming, Lodging & Leisure at Fitch, said in an email.

That effect has already been prevalent in Columbus where Scioto Downs’ video lottery terminal business fell nearly 23 percent in October, the first month of business for Hollywood Casino Columbus.

And gamblers are ditching Indiana casinos to test their luck at Ohio’s three new casinos, at Penn National Gaming’s (NYSE:PENN) Hollywood Casinos in Columbus and Toledo, and at Rock Gaming LLC’s Horseshoe Casino Cleveland.

“New openings in areas seemingly devoid of gaming supply, like Columbus, still manage to meaningfully cannibalize from casinos located up to 130 miles away,” the report said.

Hollywood Casino Columbus pulled in $137 of revenue per slot per day in November, indicative of a competitive market, Bumazhny said. Anything below $200 per slot shows saturation, he said, with less-competitive markets notching daily revenue numbers north of $300 per machine.

Representatives from Hollywood Casino Columbus and the Ohio Casino Control Commission were not immediately available for comment.

Fitch’s 2013 report calls for a “mostly stable” U.S. outlook for gaming as competition increases and operators continue to focus on growth and maintain financial flexibility.

Evan Weese is web coordinator for Business First.

http://www.bizjournals.com/columbus/news/2012/12/19/ohios-gaming-industry-has-state.html