Penn National Gaming, one of the country’s largest casino firms, has reportedly acknowledged publicly that its revenues in Ohio aren’t what was expected, thanks in large part to underwhelming slot machine play — typically the biggest moneymaker in any casino.
The company’s casino in Columbus had a price tag of $400 million, and it opened in October. In the month of June, it took in about $16.5 million, which was part of a three-month slide.
“Clearly the market has not met our expectations,” Timothy Wilmott, Penn’s president and chief operating officer, told The Columbus Dispatch. “We expected to be the market leader in slot win, and right now, we’re at a 50-50 level with Scioto (Downs).”
In June, Scioto Downs Racetrack & Casino had slot revenue of $11.45 million, while Hollywood Columbus’ slot revenue was just $11.23 million. Hollywood Columbus won $5.26 million from gamblers in table games during the 30 days of June.
Revenues from Penn National’s casino in Toledo — the Hollywood Casino Toledo — aren’t meeting expectations either. Combined with its other business activity, the company said that its $761.4 million in revenue in the second quarter of this year resulted in a $12.2 million net loss. Its revenue prediction for the year has been cut from $3.14 billion to $2.98 billion.
The company is not giving up on Ohio development, however. Penn National will soon open two racinos, which are not Las Vegas-style like its facilities in Columbus and Toledo. Both are expected to open their doors by the end of next year.
Penn National is not alone, as gambling activity in Ohio as a whole has been lackluster.
For more news from Ohio, check out its state page.
