Jack Casino Cleveland had its worst December in history.
Jack Cleveland Casino’s December revenues have declined 32% of a 4-year period. Such a steady decline during a time of economic recovery is troubling.
The Ohio state commission and the state lottery define revenues as the money remaining after a gaming venue pays winners and deduct expenses for marketing and promotions. Comparing revenue from the same month in previous years is considered the best way to track fluctuations in revenues, because the holidays and other seasonal factors are the same.
Horseshoe Cleveland Casino’s Opening
The casino’s first December was in 2012, when it generated $24.4 million in revenues. That was 8 months after its grand opening, so the revenue statistics should have stabilized from the grand opening.
In December 2016, the revenues for the downtown Cleveland casino were $16.5 million. The numbers have fluctuated since the first year, with December numbers of $18.3 million in 2013, $21.3 million in 2014, and $18.8 million in 2015.
Jack Casino officials say that the consistent drop in the numbers is due to new competition in northern Ohio. When the gaming center opened, it was named Horseshoe Casino Cleveland. The operation rebranded itself in June 2016, but that did not seem to help the revenue situation.
Racetrack Casinos Cannibalized Revenues
Since the grand opening of Horseshoe Casino Cleveland, three racetrack casinos have opened in the area. Youngstown, North Randall, and Northfield long had racetracks, but a new law allowed each of them to build slots parlors on the grounds. Local gamblers near those cities are more likely to visit the racinos, so Jack Casino has lost a significant portion of its customer base in that intervening four years.
Gayle Joseph, Jack Entertainment’s VP of communications, said there is a silver lining for the state of Ohio. Joseph said, “The good news is that statewide gaming revenue has increased as a result, which means an increase in taxes that benefit municipalities throughout Ohio.”
Ohio Casino Statistics
Overall, Jack Casino generated $203.6 million throughout 2016. That is a second-place finish for the state, because Hollywood Columbus collected $213.5 million over the same time span. This is the first year since it opened that the Jack/Horseshoe Casino did not finish first in yearly revenues.
Partly due to the Jack Casino factor, overall casino revenues declined from $71.6 million in 2015 to 66.3 million in 2016. Those numbers indicate that other casinos around the state declined over $3 million in 2016.
Ohio Racino Statistics
The same cannot be said about the racinos, which increased their winnings in 2016. The Ohio Lottery Commission‘s published racino stats show that the combined racino revenues for December 2016 were $73.6 million. The statistics were $72.2 million for the same time in 2015.
Hard Rock Rocksino Northfield Park, a joint venture between Northfield Park and Hard Rock International, posted $18 million in revenues for December 2016. That number is remarkable, because it makes Northfield Park the second-largest revenue stream in Ohio gambling for December 2016.
Jack Thistledown Racino Numbers
Not everything is bad news for Jack Entertainment. Jack Thistledown Racino produced $9.5 million in December, which is a $1 million increase from December 2015. Jack Thistledown underwant millions in renovations over the past year, so the uptick in revenues is an indication that investment worked. It also shows that Jack Casino’s losses were not a complete loss, since the gaming company likely recouped $1 million from its satellite gaming venue.
Jack Entertainment not only owns the Jack Cleveland and Jack Thistledown Racino, but also the Jack Cincinnati Casino. Penn National Gaming is another major competitor in the stated. Penn National owns Hollywood casinos in Columbus and Toledo, while owning the racinos near Dayton and Youngstown.
Jack Entertainment Profile
Jack Entertainment is owned by Dan Gilbert, the billionaire native of Detroit who founded Quicken Loans and now owns the Cleveland Cavaliers. The biggest news of the year for the Gilbert family was the Cleveland Cavaliers winning the NBA Title in June 2016. It was the first major sports title for Cleveland since 1963, when Jim Brown and the Cleveland Browns won an NFL Championship (in the pre-Super Bowl era).
When Dan Gilbert’s gaming operation changed its name to “Jack”, it was a bit of a headscratcher. The marketing arm of the newly-branded Jack Entertainment said the name was a reference to money, as “jack” is slang for money.
