Study: Wisconsin’s casino market saturated
Published 4/11 at 5:25 p.m.BY JOE WARD
jward@kenoshanews.com
A study showing a saturated market in Wisconsin has opponents of the proposed Kenosha casino saying an additional competitor will hurt all gambling outfits in the state.
The 2014 Indian Gaming Industry Report — an independent study of Native American casinos’ economic vitality — shows that Wisconsin’s gambling outlets have lost money since 2007. Despite posting increased revenues in 2012, casinos in the state have earned 3 percent less than in 2007, when the state’s gambling industry reported $1.2 billion in revenue.
According to some, the numbers show a matured market in Wisconsin, where gambling outfits are competing for the same pool of revenue. Adding another casino, like the one the Menonimee Nation has proposed for Kenosha, would just mean that each casino in the state will earn less of the overall gambling revenue, opponents of the project say.
“There’s only so many gamblers,” said George Ermert, spokesman for the Forest County Potawatomi, who operate a casino in Milwaukee. The Potawatomi are opposed to the project because of its possible effects on their operation.
“Facilities are fighting for the same dollars,” Ermert said.
Still, supporters of the Kenosha casino say the decline in revenue is due to the recession, and that the Menominee business plan calls for a substantial amount of revenue to come from Illinois gamblers.
Casino economics
Since 2007, the number of slot machines, table games and casino jobs have increased in Wisconsin. Over that same time period, revenues for casinos have fallen, despite an increase in gambling products, according to the industry report which included financial numbers as recent as 2012.The proposed Hard Rock casino and entertainment center would add thousands of jobs and slot machines to the state’s gambling market. But that isn’t necessarily a good thing for the state, Ermert said.
“Some of the downturn can be attributed to the recession, but some of it is also due to the maturing of the gaming market,” he said.
Gov. Scott Walker has the final say on the Menominee casino, and has signaled that he will take as much time — perhaps until after November’s election — as needed to make the correct decision.
Walker’s administration is working on an independent report on the jobs and economic impact the Kenosha casino will have on the state.
Walker commissioned the independent look at the casino market after the city of Milwaukee and the Potawatomi both said that the 3,000 jobs gained from a Kenosha casino would be completely offset by losses at the Milwaukee casino.
Ermert said he is confident Walker’s economic impact study will show what other reports have said — that there is no more gambling revenue to be had.
“We are sure that the governor’s report will show that the new casino will be harmful to Wisconsin,” he said.
Menominee refute claims
Michael Beightol, spokesman for the Menominee, said the downturn in the gambling industry has not been much different from any other industry that endured through the recession.“Every business suffered in the recession,” he said in a statement, noting that the market in 2012 showed a robust, nearly $20 million improvement over 2011.
Besides, Beightol said the Hard Rock Kenosha project will not just compete for gambling revenues from Wisconsin residents.
As much as 65 percent of the proposed Hard Rock’s profits are expected to come from Illinois. A study commissioned by the Menominee shows that $2 billion in untapped gambling revenue exists in the Chicago market.
“It’s important to remember the strategic location for the proposed Kenosha casino, just 8 miles from the state line,” Beightol said. “The Menominee Hard Rock Hotel & Casino will bring more guests from Illinois which will help the tribal gaming business over time increase overall revenues, put Wisconsinites back to work and increase payments to the state.”
http://www.kenoshanews.com/news/study_wisconsins_casino_market_saturated_476515737.html
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