Ohio casinos far from revenue projections
The numbers that were estimated when the state allowed casinos ten years ago are very far from reality.
US.- Ohio voters agreed to allow casinos in the state almost ten years ago when people in favour of the measure projected that four locations would generate US$1.9 billion in revenue before taxes. However, the latest annual figures indicate that the four casinos totalled US$818 million, way less than expected.
Matthew Schuler, executive director of the Ohio Casino Control Commission, said to the Dayton Daily News that not a single estimate regarding projected revenue when the casinos were introduced to the public turned out to be accurate. “All of them (the early projections) were wrong. It wasn’t just the campaign (for the amendment) that overestimated,” he said.
It is believed that allowing the seven racetracks in the state to feature video lottery terminals (VLTs) has affected casinos’ revenue, as the adjusted gross revenue from the casinos was almost US$180 million lower (US$987 million) than that the racetracks totalled in the last fiscal year.
“What they weren’t looking at is the profound effects of the Wall Street collapse and the auto collapse and the Great Recession,” he said, adding: “It still to this day has an impact. You can look at Las Vegas and they will tell you at each casino: They are getting the same amount of visitors that they had before – they’re just not spending as much.”
Mark Tricano, JACK senior vice president of Northeast Ohio operations and general manager, told the local media: “The simple fact is that the state gaming revenue is now split between eleven locations rather than the four casinos as originally contemplated.”
