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Cleveland Casino Takes Cut of Mountaineer Revenue
CHESTER, W.Va. -- Revenues from slot machines increased by $4.2 million in the second quarter at MTR Gaming Inc. But revenues from table gaming at Mountaineer Racetrack, Casino & Resort here were down by $1.3 million, primarily as a result of increased competition from the new casino in Cleveland.
MTR Gaming reported a loss from continuing operations of $2.1 million for the second quarter, or 8 cents per diluted share. Net revenues were $119.1 million. Comparatively, income from continuing operations was $2.3 million, or 8 cents per diluted share, in the same period of 2011 and net revenues were $110.5 million.
Current-quarter results include $2.2 million of project-opening costs related to the opening of the video lottery terminal facility at Scioto Downs in Columbus, Ohio, which opened June 1 with 1,787 VLTs and added approximately 700 jobs in the Columbus area.
“The second quarter was a historic one for MTR Gaming as we opened our new VLT facility at Scioto Downs on June 1, and we are encouraged by the initial performance of this first-class property,” said Jeffrey J. Dahl, president and CEO of MTR Gaming. “Additionally, we recently completed the second phase of our expansion at Scioto Downs, which provides for an additional 329 VLTs (which increased the total VLTs to 2,116), a buffet with approximately 300 seats and a sports bar for patrons to enjoy.”
Net revenues at Presque Isle Downs & Casino in Erie, Pa., decreased 8.2% to $47.8 million during the second quarter of 2012 compared to $52.1 million during the second quarter of 2011. Revenues from slots decreased by $3.8 million compared to the same quarter of 2011, and revenues from table gaming at Presque Isle Downs decreased by $300,000 compared to the prior-year period, primarily attributable to competition from the new Ohio casino.
Net revenues at Scioto Downs were $12.6 million during the second quarter compared to $0.9 million during the second quarter of 2011.
For the first half of 2012, MTR’s total net revenues increased 8.7% to $227.1 million from the first half of 2011. The 2012 year-to-date loss from continuing operations was $5.3 million, or 19 cents per diluted share. In the same period last year, the company reported a loss from continuing operations of $2.9 million, or 10 cents per diluted share, which included income tax expense of approximately $1.4 million attributable to additional valuation allowances on deferred tax assets.
MTR Gaming Group Inc. is a hospitality and gaming company that through subsidiaries owns and operates Mountaineer, Presque Isle Downs and Scioto Downs.
Published by The Business Journal, Youngstown, Ohio.