Bettors Wager $52.9M in Racino’s First 2 Weeks
YOUNGSTOWN, Ohio -- Bettors at the new Hollywood Gaming at Mahoning Valley Race Course wagered $52.9 million in cash and credits and won $46.9 million in its first 14 days, the Ohio Lottery Commission reported Tuesday afternoon.
The lottery commission, in its first monthly report of state video lottery terminal revenues since the racino opened Sept. 17, reported racino net proceeds of $5.94 million -- net revenues remaining from credits played minus credits won and less promotional credits ($79,794 for the days open last month) -- and percentage payout of 88.77%.
The racino commission -- the portion of net win paid to the racino operator as compensation for operating the gaming facility, minus the problem gambling services disbursement -- was $3.9 million, and just under $2 million out of the net proceeds went to the lottery commission. Representing half of 1% of the racino's commission to the Ohio Lottery, the problem gambling services disbursment was $19,739 last month.
The average number of VLTs in play was 850 and the average payout per VLT per day was $499, according to the report.
On average, Mahoning Valley bettors put up $3.78 million per day at the racino in Austintown the first 14 days it was open.
By comparison, bettors at the new Hollywood Gaming at Dayton Raceway -- its sister property operated by Penn National Gaming Inc., put up $17.9 million in cash and credits its first four days of operation in August. On average, Dayton Raceway players spent $4.47 million each of those days at this racino's 1,000 VLTs.
The following month, its first full month of operation, Dayton saw $74.4 million in cash and credits played, or $2.48 million per day on average. With 1,000 VLTs, its win per VLT per day was $466 in August and $207 in September. The payout was 89.57% in August and 91.66% last month.
Penn National Gaming Inc., of Wyomissing, Pa., which operates both racinos, does not comment on monthly revenue figures because “any new gaming facility requires a minimum of two years -- and frequently even longer -- to establish its long-term revenue prospects,” said spokesman Bob Tenenbaum. Also, monthly numbers are a poor indicator because of the variables involved and opening-day numbers are “completely skewed,” he said.
Among the variables in Dayton was a holiday weekend. It opened the Thursday before the Labor Day weekend. By contrast, Mahoning Valley’s first two weeks fell well beyond the end of summer vacation and into the first few weeks of children returning to classes, cutting into both time and disposable income.
“Although September's revenue numbers reflect only a partial month, we continue to be very pleased with the response we've gotten from the people of the Mahoning Valley and beyond, and we're looking forward to continuing the momentum we've built in our first few weeks of operation,” he remarked.
Statewide, VLTs recorded $683.4 million cash and credits played and $609.7 million won, with a 91.13% payout and, on average, a $206 average win per day for the 9,821 VLTs.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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