Casinos Boost Bottom Line
But Pa.’s slots threaten what was once a sure thingBy CASEY JUNKINS
Article Photos
Article PDFs
Revenue Since Table Gambling Began in W.Va.
WHEELING - Roulette, blackjack and Caribbean Stud helped Wheeling Island Hotel-Casino-Racetrack and Mountaineer Casino Racetrack and Resort earn a combined revenue of nearly $275 million between Dec. 20, 2007, and July 19.
That's $14.3 million more than the $260.6 million the two tracks earned between Dec. 20, 2006, and July 19, 2007, prior to the implementation of table gambling. The tracks also are battling a weak economy in the Upper Ohio Valley and higher consumer prices this year.
Since the December opening of table gambling at the two Northern Panhandle facilities, the Wheeling track has earned $117.2 million from slots and table gambling, about $1.26 million more than the previous year's take. Mountaineer has earned $157.7 million, about $13 million more than the previous year, according to the West Virginia Lottery Commission.
In comparison, The Meadows Racetrack and Casino in Meadowlands, Pa., about 35 miles northeast of Wheeling, has raked in $138.5 million over the same seven-month period - and The Meadows does not have table gambling, according to the Pennsylvania Gaming Control Board.
Combined, the three tracks earned revenue of more than $413 million since December.
A look at Wheeling Island and Mountaineer's numbers show that while table gambling has been successful in bolstering the track's bottom lines, slot machine play has dropped considerably over the past year.
Counting only slot machine revenue, Wheeling Island earned $97.3 million for the period from Dec. 20 to July 19, while Mountaineer took in $129.8 million. These numbers are down about 10 percent from the $115.9 million for Wheeling Island and $144.6 million for Mountaineer during the same period a year earlier.
As for table gambling, the two tracks have combined to earn $47.7 million in revenue since Dec. 20, with Wheeling Island taking $19.8 million and Mountaineer claiming nearly $27.9 million.
Nancy Bulla, West Virginia Lottery Commission spokeswoman, said the state's transition to table gambling has been smooth.
"Lottery Director (John) Musgrave made sure to dot every 'i' and cross every 't' as we got ready for table gambling, which ensured a smooth process," she said.
Bulla said the main purpose of table gambling was to help offset projected losses in slot machine revenue upon Pennsylvania plugging in its video lottery machines.
"The table gambling has done everything we expected it to do," she added.
Mountaineer spokeswoman Tamara Pettit said the Chester track is pleased with how table gambling has allowed it to expand its entertainment options.
"I think (table gambling) has exceeded any expectations we could have had. It has added another element for us that has allowed us to attract many new customers," she said.
Jim Simms, president and general manager at the Wheeling Island track, said table games have been good for business - but not good enough to counteract the effects of competition from the Keystone State.
"Our slots are down approximately $16.5 million from last year, primarily due to the impact from The Meadows," Simms said. "While our table games have contributed approximately $16.5 million, with poker adding $3.4 million, when you consider the extra labor costs associated with operating table games and our table games marketing expenses, Wheeling Island is actually trending approximately $3 million behind last year.
"Table games, while positively contributing to the business, have not offset the lost business from Pennsylvania slot Free Play initiatives," he added regarding $20-$50 credits that are being offered to slots players at Pennsylvania casinos. West Virginia tracks now are seeking to offer similar credits to retain customers.
In terms of table gambling earnings, the two Northern Panhandle tracks have combined to earn $836,288 from the game known as Big Six; $1.5 million from blackjack; $385,522 from Caribbean Stud; $9 million from craps; $860,419 from four-card poker; $1.7 million from Let it Ride; $373,975 from Pai Gow; $7.7 million from poker; $4.4 million from poker tournaments; $4.9 million from roulette; $4.8 million from three-card poker; $1.1 million from Texas Hold 'em; and $16,580 from mini bac.
State Delegate Jack Yost, D-Brooke, said the money earned from table gambling has benefited the state's budget.
"Because of the money we have received from table gambling, the governor has been able to use some other money to pay down various debts in the state," he said.
"Financially and economically, table gambling has been very good to the state," Yost added.
State Sen. Jeff Kessler, D-Marshall, said table gambling "has been successful for West Virginia."
Delegate Orphy Klempa, D-Ohio, said the games have provided job growth for the Northern Panhandle.
"It is really good to see that so many people have been able to get jobs at the tracks," he said.
In observing West Virginia's success with table gambling, Pennsylvania legislators are now holding a series of public hearings to allow casino executives and others to share their views on House Bill 2121, which would permit table gambling at Pennsylvania's slot machine facilities, such as The Meadows.
Kessler said West Virginia would be hurt by legalized table gambling in Pennsylvania.
"Many states are looking to pay off debts without raising taxes," he said, noting Ohio recently added Keno as a way to help pay off debt.
"If these other states take some of our business, we will just have to adapt," Kessler said.
Delegate Tal Hutchins, D-Ohio, also said the Mountain State would be hurt if its larger neighbors were to expand their gambling offerings.
"If Pennsylvania picks up tables and Ohio gets gambling, we would be in trouble. We knew we would take a hit once Pennsylvania started with slots, so it would be the same thing if they got tables," he said.
In addition to The Meadows, other Keystone State casinos that may eventually offer table gambling include Mohegan Sun at Pocono Downs in Wilkes-Barre; Philadelphia Park in Bensalem; Harrah's Chester Downs in Chester, Pa.; Mount Airy Casino Resort in Mount Pocono; Hollywood Casino at Penn Nation Race Course in Grantville; and Presque Isle Downs in Erie. Presque Isle is owned by MTR Gaming Group Inc., which also owns Mountaineer Racetrack.
There's also the Majestic Star Casino proposed to open on Pittsburgh's North Shore in 2009.
Given the possible proliferation of table gambling in the future, Hutchins said it is time for West Virginia to focus on different industries.
"I just don't see gambling as a growing industry here anymore," he said.
Both Hutchins and Klempa said the recently announced Northern Appalachian Fuels coal liquefaction plant to be built in Benwood by Consol Energy Inc. and Synthesis Energy Systems Inc. is an example of the way the state should grow its economy.
"We at the state are working to diversify our economy as much as possible with jobs focusing on energy and industry," Klempa said.
However, according to a Rockefeller Institute of Government report, West Virginia ranks second only to Nevada in the share of its state budget that comes from gambling dollars.
According to the Rockefeller report, gambling revenues in the Mountain State equaled nearly 9 percent of the state's 2006 general fund budget. Gambling in Nevada provides for 13.4 percent of that state's budget. The report did not include revenue figures from table gambling.
The Rockefeller Institute also found West Virginia's budget reliance on gambling dollars grew by 6.4 percent between 1998 and 2006, the most of any state.
|
EllisWyatt
|
|
|---|---|
|
08-10-08 8:36 PM
|
How to diversify an economy, by West Virginia politicians: Use taxpayer money to finance 100% of the risk, and cost, associated with a $500 million plant that will pollute the air and provide 50 jobs. If the project fails, taxpayers pay the price. If the project is a success, Consol gets the profits. Maybe it's just me but I've always understood that the entity that takes the risk is the entity that should benefit. This can be a more business friendly state-with an open shop, lower taxes, less confusing regulations, elimination of B&O, government working WITH businesses, tort reform and an educated workforce. West Virginia's idea of business friendly? $200 million for 2,000 low wage jobs at the Highlands, a cost of $100,000 per job. $500 million for 50 jobs in Benwood, at a cost of $10 million per job. It would seem that the Highlands is actually a better investment for taxpayers!
|
|
gliderider
|
|
|
08-10-08 9:04 AM
|
your right burningup07,,i now live in nashville tn. and the first thing they do here is give companys whom move in tax breaks,, they dont go right for the wallit like the area up there does...
|
|
BurningUp07
|
|
|
08-09-08 12:32 PM
|
gliderider I don't want to move but for someone that has well over 30 years of their working life ahead of them, this area is a J-O-K-E, West Virginia basically forces people to leave. I agree though the casinos are not this states problem, this states problems are way more complicated than that. Were better off with them than without. ellis good point why does every state around us have a better economy than West Virginia? West Virginia has tons of old buildings and land that could hold good paying jobs, there are probably tons of companies out in California for example that would come here if this state would work it out some how.
|
|
gliderider
|
|
|
08-09-08 10:11 AM
|
people should be glad if a company moves to wheeling and creates 10 new jobs
|
|
gliderider
|
|
|
08-09-08 12:46 AM
|
lmao.....i love to hear everyone*****and moan about the area..move away and come to visit once in awhile like i did...wheeling and the area is a*****pit...you people should be proud of such a nice casino...there is hundreds of citys whom would love to have such a nice place to go and gamble,, i love stopping there when i come to wheeling to visit....its the only nice thing left for that city dump...........
|
|
EllisWyatt
|
|
|
08-09-08 12:32 AM
|
I was offended and insulted by the casino's behind the scenes efforts to pass table gaming. Their billboards said "Vote Yes for jobs". They didn't say they were gambling jobs. They said their dealers would average $35,000 per year plus benefits. Turns out dealers are earning near minimum wage. The casino then said "oh, but the $35,000 includes tips!". I saw a van and a woman organizing a group of teenagers at Sheetz before the table gaming vote. They were wearing "Vote Yes" t-shirts and holding placards. The van had PA plates. I asked the woman "who is paying for this campaign?" She became nervous and said "a non-profit". I asked "which one?" and she said "we're based out of state". Why would an out of state group be in Wheeling advocating Table Gaming? Perhaps the Casino was paying them? We hear that they were going to create 300 new jobs. What about the 300 jobs they eliminated when they didn't originially get
|
|
PCGS70
|
|
|
08-08-08 10:40 PM
|
The only reason MNTG has a negative bottom line is because they bought another casino. They took profits and invested it. The newspaper made it look like they LOST money in a previous article when all the numbers were up up up. They invested. It's NOT the time to sell. Hold and they will be higher than ever,
|
|
EllisWyatt
|
|
|
08-08-08 6:57 PM
|
The politicians in West Virginia have a narcotic to which they are addicted-gambling. Instead of making any effort to boost employment, and, no, I don't mean at Mcdonald's, the politicians keep milking the cash cow until it dies. By then, they will be retired or dead and blame the next guy. West Virginia is dead last in multiple economic categories. Virginia is considered the # 1 place in America in which to do business. How can West Virginia, right next door, be 50th? 1. A closed shop. 2. Same old hack politicians. 3. Taxes and regulation that scare off jobs. 4. An out of control legal system that scares off employers. 5. A low number of college graduates. I could go on and on but what good would that do? Let's keep on giving out PROMISE, so graduates can move out of state and earn big bucks.
|
|
atoddh
|
|
|
08-08-08 5:19 PM
|
Nutter:Actually Candidate Jim Lees proposed this. When PA and Ohio have full casinos,WV will be in a jam.
|
|
anutterview
|
|
|
08-08-08 4:39 PM
|
atoddh, an idea worth considering, however, I haven't heard anyone proposing this in Charleston. Maybe it would have to be presented in a way that the politicians could use to help them get re-elected. Then it could fly.
|
|
atoddh
|
|
|
08-08-08 4:27 PM
|
nutter:a large portion of the gaming proceeds should be placed in a State venture capital fund to back new business starts and expansions:especially those that would create well paid tech and manufacturing jobs.Most of it is going into the Promise program which facilitates the departure of young graduates because of lack of opportunity in WV.
|
|
anutterview
|
|
|
08-08-08 4:23 PM
|
Sorry, that's "mathematically challenged" for those that require translation of my alternate free-style spelling. :)
|
|
anutterview
|
|
|
08-08-08 3:50 PM
|
I'm glad that our tax burden is lessened by the mathatically challanged but how long can WV get away with penalizing poor judgement, before the state starts providing a government benefit to "those poor souls whose lifes are ruined because they chose to gamble"?
|
|
atoddh
|
|
|
08-08-08 3:50 PM
|
nutter:note the last two paragraphs of the article.WV is increasingly dependent on gaming. Unfortunately,Junkens suggests the Casinos are doing well("bottom line boost") when in fact they are not.
|
|
anutterview
|
|
|
08-08-08 3:31 PM
|
Good, since gaming is paying the bills, when can the good taxpayers of the state receive a rebate?
|
|
atoddh
|
|
|
08-08-08 3:29 PM
|
The Meadows slots and soon the Downtown Pittsburg Casino will take a substantial part of the WV Northern Panhandle business.Every effort should be made,now,to promote the Casinos and WV as a destination.The headline of this article is not correct:the bottom lines are falling not being boosted.Gaming in WV is paying the bills.
|
|
billybob
|
|
|
08-08-08 1:37 PM
|
I think the next thing the casinos should do is open a company store and rent apartments to the employees. Also withhold a part of their pay to pay fot these things. Charge them for the heat they require when at work would help and same for ac. Like all gamblers the casinos just cry and cry so we can pay their greedy appetite for money. We have lost as taxpayers and citizens.
|
|
anutterview
|
|
|
08-08-08 11:45 AM
|
Government can't legislate moral issues.....but they can make money taxing them. And if the voters give them a problem, tell the voters that the government needs the money to take care of their kids and parents. It's a shame that a big part of WV business is justifying the exploiting of the mathmatically challanged with the excuse that it is only for entertainment, and "we must support your kids and old folks".
|
|
ThankGodImABuckeye
|
|
|
08-08-08 11:18 AM
|
Chasing the casino's out of the valley is the last thing that needs to be done. The revenue from the casino's helps fund public libraries, the promise scholarships, and many senior programs. Without that revenue, West Virginia would be in a lot more trouble financially than it already is. WV most certainly has to compete for business and the gaming industry is a huge part of that.
|
|
Donaldo
|
|
|
08-08-08 10:42 AM
|
logically the next step in this ever-escalating chase for dollars would be to follow the lead of Nevada and legalize prostitution. Or how about this novel idea: Give our kids a better education so that the valley can attract some real jobs.
|
|
billybob
|
|
|
08-08-08 10:29 AM
|
Maybe the bottom line shows they are paying for new casinos or maybe a small loss of Niagra falls junk keepsake shops! They cry all the way to the bank. How much do their CEO's and board members make? Or the family that owns them rake off? Maybe the state of WV could chip in on the gas bill too? Like a local park that makes money but never gives back to the taxpayers! Just a steady drag on residents of the city and state. Worse than communist rule.
|
|
anutterview
|
|
|
08-08-08 9:47 AM
|
atoddh, Guess you should have gambled (invested) your money with Big Oil instead of gambling industry, ironic isn't it? But in the case of gambling industry the big winner is the government, not the casinos, seems the government doesn't think it is getting enough of a take yet with Big Oil.
|
|
LynneS
|
|
|
08-08-08 9:39 AM
|
Protecting gambling interests is not something I can get real excited about.
|
|
atoddh
|
|
|
08-08-08 3:28 AM
|
MNTG has a negative "bottom line."
|
|
atoddh
|
|
|
08-08-08 3:06 AM
|
Casey: Your numbers are misleading.Mountaineer is expected to lose $0.10/share in 2008-a big loss.Their shares have dropped from a high of almost $17 in May of 2007 to $3.76 today:an 80% decline in value.Their credit rating has been lowered.(I am a shareholder.) Meanwhile the Wheeling Press is busy making sure the Casinos are not permitted to promote properly to attract out of state patrons. I would suggest that your nit wit editor change his tune about the Northern Panhandle Casinos - before it is too late.WV has to compete for the business;it is not going to be easy.
|